ACWA Power and PTT to Invest $7 Billion in Green Hydrogen Production
PTT Group, a Thai government-run company specializing in oil and gas, has announced its plans to partner with ACWA Power, a renewable energy corporation based in Saudi Arabia, to invest a total of $7 billion dollars into the development of green hydrogen. The aim of this joint venture is to utilize green hydrogen to fuel clean vehicles within ASEAN nations, and to ultimately position Thailand as a leading provider of green energy for the region. PTT’s CEO, Auttapol Rerkpiboon, has stated that this initiative is only the beginning of a larger vision to establish Thailand as a prominent exporter of sustainable energy. Additionally, this investment aligns with the Thai government's objectives to achieve carbon neutrality by 2050 and net-zero emissions of greenhouse gases by 2065.
One of the aims is to fuel hydrogen-powered electric vehicles in the ASEAN region.
The PTT Group is a government-owned company in Thailand that deals with oil and gas. They plan to invest in a green hydrogen project with ACWA Power, a top renewable energy company in Saudi Arabia. The investment is estimated to be worth $7 billion and aims to support the use of eco-friendly cars in the ASEAN region.
PTT's Objective is to Attain Net-Zero CO2 Emissions by 2050.
PTT has many strategies to reduce carbon emissions while maintaining profitability, and investing in green hydrogen is just one of them. This investment supports PTT's goal of achieving net-zero carbon dioxide emissions by 2050.
Auttapol Rerkpiboon, the CEO of PTT, stated to Nikkei that this is the initial phase towards propelling Thailand as a global provider of eco-friendly energy.
The head of the company clarified that their aim for the eco-friendly initiative is to construct a facility in Thailand, with the ability to manufacture 225,000 tons of environmentally friendly hydrogen each year. This measure is equivalent to creating approximately 1.2 million tons of ammonia.
"The Investment Agreement for Green Hydrogen Holds Great Significance for Various Reasons."
Similar to numerous nations worldwide, Thailand recognizes the significance of spending billions of dollars into manufacturing green hydrogen at a massive scale. Furthermore, as part of their net-zero plan, PTT has made an investment that aligns with the Thai government's pledge to achieve carbon neutrality by 2050 and zero emissions of greenhouse gases by 2065.
Nonetheless, the green hydrogen investment initiative orchestrated by PTT and ACWA Power is especially significant for promoting the mending of diplomatic ties between Thailand and Saudi Arabia, which had been frozen for more than 30 years until 2022.
Thailand and Saudi Arabia had a strained diplomatic relationship for over 30 years due to the Blue Diamond Affair. This refers to the theft of valuable jewels worth $20 million in the late 1980s. However, the relationship between the two nations started improving from January 2022 onward. As a result, Aramco increased its supply of crude oil, petrochemical products, and LNG to PTT.
Currently, the green hydrogen partnership established by PTT and ACWA, two firms linked through the state-owned Electricity Generating Authority of Thailand, has the potential to additionally improve diplomatic ties between the two countries. Together, they have committed $7 billion towards the production of green hydrogen as part of their collaborative efforts. This investment is an important advancement towards achieving their shared goals for green H2 production.
PTT's CEO stated that their goal is to promote green hydrogen as a viable energy option and increase its demand. The objective is to steer Thailand towards becoming a leading supplier of green energy in the ASEAN region.
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