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.

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.