ACWA Power signs deal to back Thailand’s decarbonization journey

Saudi Arabia-based energy company ACWA Power has entered into an agreement to support Thailand’s decarbonization ambitions through a green hydrogen and derivatives development project.

The firm signed an agreement with PTT Public Co. Limited, Thailand’s national integrated energy company, and the

Electricity Generating Authority of Thailand, an electric powerrelated state-owned enterprise, according to a press release.

As part of the terms of the agreement, 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. With an estimated investment of $7 billion, the Southeast Asian country is targeting hydrogen production of around 225,000 tons annually which is equivalent to 1.2 million tons of green ammonia yearly.

Paddy Padmanathan, vice chairman and CEO 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.”

Thailand is aiming to use green hydrogen as an alternative energy source in the upcoming years in an attempt to fulfill its vow of achieving carbon neutrality by 2050 and net-zero emissions by the year 2065, the press release said. Moreover, it added that using green hydrogen will help in supporting emissions abatement imperatives and in building a low-carbon circular economy at a domestic level.

ACWA Power has been expanding its portfolio rapidly, with its asset hitting $75 billion as it posted a 110 percent profit jump in 2022 so far, according to Padmanathan.