PTT Group and ACWA Power Plan $7 Billion Investment in Green Hydrogen for Electric Vehicles in Southeast Asia

PTT Group, a Thai oil and gas conglomerate, plans to invest $7 billion in producing “green” hydrogen with ACWA Power, Saudi Arabia’s leading renewable energy company, with the goal of powering electric vehicles in Southeast Asia.

According to PTT CEO Auttapol Rerkpiboon, the project aims to build a plant in Thailand with a capacity of 225,000 tons of hydrogen per year. The two companies signed a Memorandum of Understanding in November with the Electricity Generating Authority of Thailand (EGAT) to move forward with the project, and the $7 billion investment pledge is a step toward that goal.

According to the PTT CEO, the project’s goal is to promote green hydrogen as a future energy source in order to generate demand and lead to economies of scale, propelling Thailand to become ASEAN’s green energy supplier.

Green hydrogen is generated through water electrolysis and stored until it is used to power automobiles and industrial machinery. Green hydrogen, as opposed to “brown” and “gray” hydrogen, is created entirely from renewable energy sources, resulting in zero emissions.

PTT has pledged to achieve net-zero carbon dioxide emissions by 2050, and this investment is one of many different approaches to finding a balance between lowering emissions and remaining profitable. PTT’s net-zero strategy is also consistent with the Thai government’s targets of carbon neutrality by 2050 and net-zero greenhouse gas emissions by 2065.