Thermax New Company In Renewable Energy Sector Read Everything Here

In the ever-evolving landscape of renewable energy, a new player has emerged with promising potential. Thermax, a renowned engineering solutions provider, has made significant strides in the renewable energy sector. With its expertise in sustainable technologies and a commitment to addressing the global energy challenge, Thermax is quickly becoming a key player in the transition to a greener future. This article delves into Thermax’s endeavors, innovations, and their impact on the renewable energy sector.

Thermax: The New Kid on the Renewable Energy Block

Thermax, an energy and environment company, is venturing into the renewable energy sector with plans to build a one-gigawatt portfolio across solar, wind, and solar-wind hybrid energy within the next three years. The company aims to reduce its carbon footprint by 2030 and recognizes the potential business risks associated with fossil-fuel-based solutions. As industrial customers transition towards renewable energy options, Thermax aims to tap into these opportunities by organically growing and building its own green assets.

To pursue its renewable energy goals, Thermax has established new energy divisions dedicated to renewable energy projects. These divisions include Thermax Onsite Energy Solutions (TOESL), First Energy (FEPL), and Thermax Bioenergy Solutions (TBES). TOESL focuses on owning and operating green utilities and has executed 30 projects in the past three years. FEPL specializes in customized off-grid captive solar-powered solutions and wind-solar hybrid projects, with several projects already completed and more in the pipeline. TBES focuses on biomass-based energy, offering solutions such as bio-CNG, municipal solid waste to bio-CNG, and biomass to bio-CNG.

What Thermax Actually Doing?

Thermax is also exploring opportunities in the hydrogen sector, including electrolyser manufacturing, biomass-to-hydrogen conversion, and end-to-end engineering, procurement, and construction (EPC) of hydrogen projects. Additionally, the company plans to build, own, and operate hydrogen projects for industrial customers. Thermax is collaborating with Fortescue Future Industries, an Australian green energy company, to explore possibilities in the hydrogen field.

As Thermax shifts its focus to renewable energy, approximately 70% of its order book now comes from green businesses, while the fossil fuel division accounts for the remaining 30%. The company has also transitioned from a capital expenditure (capex)-based model to an operating expenditure (opex)-based model for its emerging entities. By owning renewable assets and turning them into annuity businesses, Thermax ensures long-term revenue streams. The TOESL projects have a 10-year life cycle, while the FEPL projects have a 25-year life cycle.

While currently self-funded, Thermax may consider involving external partners as its renewable energy platform expands and stabilizes. The company is projecting investments of around ₹500-600 crore in equity and ₹1,500-2,000 crore in debt over the next two years for these businesses at the project level. The debt will be specific to the project-based special purpose vehicles (SPVs) and not at the corporate level.

Conclusion:

Thermax’s entry into the renewable energy sector marks a significant development in the pursuit of a sustainable future. Through their expertise in engineering and commitment to sustainability, the company has established itself as a key player in the renewable energy landscape. By offering diverse solutions in solar power, biomass, waste-to-energy, and heat pumps, Thermax is actively contributing to reducing carbon emissions and promoting the global transition to renewable energy sources. As the world embraces the urgency of addressing climate change, Thermax’s innovative approaches and collaborations serve as a beacon of hope in the renewable energy sector.