- The three parties signed a memorandum of understanding to initiate the sustainability-focused collaboration
- Thailand intends to produce green hydrogen and derivatives to power the country with clean energy and export the fuel to global markets
- ACWA Power, PTT and EGAT will explore potential project with a view to secure domestic energy demand and enabling export opportunities
Riyadh, Saudi Arabia/ Bangkok, Thailand: 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 Electricity Generating Authority of Thailand (EGAT), an electric power related state-owned enterprise which aims to secure the power reliability under the supervision of Thai Ministry of Energy and Ministry of Finance, 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.
The MoU was finalised during a signing ceremony on 18th November 2022 at Nai Lert Park, Bangkok Thailand 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, Kingdom of Saudi Arabia; and Mr. Supattanapong Punmeechaow, Deputy Prime Minister and Minister of Energy, Kingdom of Thailand.
Paddy Padmanathan, Vice Chairman and CEO of ACWA Power, said: “Today’s announcement represents our enduring commitment to support international partners in delivering their societal and economic development endeavours through the energy transition underway. 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. Thus, PTT aims to reduce 15 percent of GHG 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 societies, communities, the environment, and strengthen Thailand’s economy to grow together sustainably.
Mr. Boonyanit Wongrukmit, Governor of the Electricity Generating Authority of Thailand (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 the country’s environmental goals as well as enhance low-carbon circular economy at the national level. Therefore, 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.
About ACWA Power
ACWA Power (TADAWUL:2082) is a developer, investor and operator of power generation, desalinated water and green hydrogen production plants. Registered and established in 2004 in Riyadh, Saudi Arabia; ACWA Power employs over 3,900 people and is currently present in 13 countries in the Middle East, Africa, Central Asia and Southeast Asia. ACWA Power’s portfolio comprises 67 projects in operation, advanced development, or construction with an investment value of SAR 249.2 billion (USD 66.28), with capacity to generate 42.7 GW of power and manage 6.4 million m3/day of desalinated water per day, delivered on a bulk basis to address the needs of state utilities and industries on long term, off-taker contracts under utility services outsourcing and Public-Private-Partnership models.
Executive Director - Marketing & Communications
About PTT Public Company Limited
PTT, the national energy company, is committed to foster the energy security of Thailand throughout the value chain. PTT has business operations throughout the business value chain covering from upstream to downstream as well as accelerating new business expansion of future energy and beyond according to PTT’s ith new vision, "Powering Life with Future Energy and Beyond PTT strive to contribute to empower and embrace life, moving towards low-carbon society and delivering sustainable growth.
For more information, please visit our website, www.pttplc.com
About Electricity Generating Authority of Thailand
EGAT is a state-owned enterprise under the supervision of Ministry of Energy and Ministry of Finance. The principal mission of EGAT is electricity generation, electricity acquisition, and electricity sales to the Metropolitan Electricity Authority (MEA), the Provincial Electricity Authority (PEA), a number of direct customers by law, and neighboring countries. EGAT is also responsible for other related businesses as stipulated by EGAT Act.
For more information, please visit our website, www.egat.co.th