ACWA Power, PTT Public Company Limited (PTT) and Electricity Generating Authority of Thailand (EGAT) signed a landmark memorandum of understanding with a view to embarking on green hydrogen and derivatives projects that meet the Southeast Asian country’s domestic 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.
Paddy Padmanathan, Chief Executive Officer and Vice Chairman of ACWA Power, said, “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.”
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 societies, communities, the environment, and strengthen Thailand’s economy to grow together sustainably
Mr. Auttapol Rerkpiboon, President and CEO of PTT Public Company Limited, said, “EGAT joined forces with PTT and ACWA Power Company to study the production of green hydrogen and its derivatives by using renewable energy in Thailand in order to support the demand for green hydrogen and derivatives in the country and abroad. This cooperation will not only drive Thailand to accomplish GHG reduction but also impact the overall global goal.”
With the MoU now finalised, an immediate focus for ACWA Power, PTT, and EGAT is conducting an investment feasibility study for proposed green hydrogen and derivatives projects in Thailand, which will position the parties to begin meeting all other deliverables outlined under the MoU.