Thai oil and gas conglomerate PTT Group plans to invest US$7 billion in producing “green” hydrogen with ACWA Power, Saudi Arabia’s leading renewable energy business, with the goal of powering electric vehicles in Southeast Asia.
PTT CEO Auttapol Rerkpiboon said the project aims to build a plant in Thailand with a production capacity of 225,000 tons of hydrogen per year. The two companies, together with the Electricity Generating Authority of Thailand (EGAT), signed a Memorandum of Understanding in November to go forward with the project and the $7 billion investment pledge is a step toward that goal.
The PTT CEO said the project aims to promote green hydrogen as a future energy source to generate demand and lead to economies of scale, propelling Thailand to become the green energy supplier in ASEAN.
Renewable green hydrogen is produced via water electrolysis and stored until it is utilized to power automobiles and industrial machinery. Green hydrogen, as opposed to “brown” and “gray” hydrogen, is produced entirely from renewable energy sources, which generates zero emissions as a result.
PTT has pledged to achieve net-zero carbon dioxide emissions by 2050, with this investment being one of many different approaches to finding equilibrium between reducing emissions and remaining profitable. PTT’s net-zero strategy also aligns with the Thai government’s goals to achieve carbon neutrality by 2050 and net-zero greenhouse gas emissions by 2065. (NNT)
