Investment/Energy

Editorial Team

ACWA Power, PTT and EGAT set to support Thailand’s decarbonisation aspiration in green hydrogen and derivatives development project

The three parties signed a memorandum of understanding to initiate the sustainability-focused collaboration to support Thailand’s strategy to produce green hydrogen and derivatives to drive the country with clean energy and export the fuel to global markets.

ACWA Power, PTT and Electricity Generating Authority of Thailand (EGAT) will explore potential project with a view to secure domestic energy demand and enabling export opportunities

ACWA Power, a leading Saudi developer, investor, and operator of power generation, water desalination and green hydrogen plants worldwide; PTT Public Company Limited (PTT), Thailand’s national integrated energy company; and EGAT which aims to secure the power reliability signed a MoU with a view to embarking on green hydrogen and derivatives projects that meet the ASEAN’s energy demand and enable valuable export opportunities.

Having pledged to achieve carbon neutrality by 2050 and net zero emissions by 2065, Thailand intends to produce green hydrogen as a new alternative energy source in the years and decades ahead, which entails a host of beneficial implications including supporting emissions abatement imperatives and helping to build a low-carbon circular economy at the national level.

In line with this ambitious vision, and as per the terms stipulated in the MoU, ACWA Power, PTT, and EGAT will begin collaborating exclusively on a comprehensive plan to establish large-scale, renewable-powered green hydrogen and derivatives production facilities in Thailand for local energy consumption and global market export purposes.

The target of hydrogen production is estimated to be around 225,000 tons per year, equivalent to around 1.2 million tons of green ammonia per year, at an estimated investment value of US$7 Billion.

The MoU was finalized with a signing ceremony November 18, 2022 by Mr. Mohammad Abunayyan, chairman of ACWA Power; Mr. Auttapol Rerkpiboon, president and CEO of PTT; and Mr. Boonyanit Wongrukmit, governor of EGAT, in the presence of His Royal Highness Abdulaziz bin Salman Al Saud, minister of energy of Saudi Arabia; and Mr. Supattanapong Punmeechaow, deputy prime minister and minister of energy.

Paddy Padmanathan, vice chairman and CEO of ACWA Power, said: “The announcement represents our ongoing commitment to support international partners in their societal and economic development. We are excited at the prospect of supporting green hydrogen and derivatives exploration and advancement in Thailand, a nation that shares our vision for reliably and responsibly delivering clean energy that drives the sustainability agenda and complements essential climate action worldwide. We look forward to collaborating with PTT and EGAT and laying the foundations for accomplishing the same as we bring ingenuity, innovation, and our collective resources and expertise together.”

Mr. Auttapol Rerkpiboon, president and CEO of PTT Public Company Limited, said: “PTT has made ongoing commitments to participate in and support the future of energy security in Thailand, in alignment with our vision “Powering Life with Future Energy and Beyond”. We shed particular importance on building and cooperating with partners that drive the use of clean energy in order to achieve net zero targets, which is the top priority of the national and global agenda.”

PTT aims to reduce 15 % of greenhouse gas from normal operations by 2030 in pursuance of achieving carbon neutrality by 2040 and net zero by 2050, which complements the national target.

The collaboration with international leading companies such as ACWA Power and EGAT to explore and study the opportunity to invest in green hydrogen is a significant milestone for PTT to promote Thailand’s low-carbon society along with improving the quality of life of Thai people, developing society, communities, the environment, and strengthen Thailand’s economy to grow together sustainably.

Mr. Boonyanit Wongrukmit, governor of the EGAT) said “EGAT places importance on searching for new alternate energy sources to help Thailand achieve carbon neutrality by 2050 and net zero emissions by 2065 with emphasis on suitable clean energy to help reach environmental goals as well as enhance low-carbon circular economy at the national level.