ACWA Power, a Saudi Arabia-based energy company, entered into an agreement to back Thailand’s decarbonization ambitions through a green hydrogen and derivatives development project, according to Arab News.
According to a press release, the firm signed a memorandum of understanding (MoU) with the Electricity Generating Authority of Thailand, an electric power-related state-owned enterprise and PTT Public Co. Limited, Thailand’s national integrated energy company.
As part of the MoU’s terms, ACWA Power, PTT, and EGAT will start to exclusively collaborate on a comprehensive plan to establish large-scale, derivatives production facilities, and renewable-powered green hydrogen in Thailand for local energy consumption and global market export purposes.
Thailand aims for 225,000 tons of annual hydrogen production
With a $7 billion estimated investment, the Southeast Asian country targets hydrogen production of around 225,000 tons yearly, equivalent to 1.2 million tons of green ammonia annually.
“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,” said ACWA Power CEO and vice chairman Paddy Padmanathan.
In addition, Thailand is aiming to use green hydrogen as an alternative energy source in the upcoming years to fulfill its promise of achieving carbon neutrality by 2050 and net zero emissions by 2065, the press release said.
Furthermore, it added that using green hydrogen will help back emissions abatement imperatives and build 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.
“The company is set to reach assets of $230 billion by 2030.”
ACWA Power’s capacity
While the firm’s current capacity is at 42 gigawatts (GW), he said there’s the capacity to increase the volume by up to three times to reach 150 GW.
“Currently, the company produces 6 million cubic meters of desalinated water, but that figure is estimated to hit 15 million cubic meters by 2030,” says Padmanathan.
He added that ACWA Power, part-owned by Saudi Arabia’s Public Investment Fund, is also producing up to 240,000 tons of green hydrogen.
ACWA Power’s profits
A recent bourse filing showed the energy giant’s profits achieved SR883.4 million ($235.1 million) during the first nine months of this year, up from SR419.9 million ($111.7 million) during the same period in 2021.
The growth was driven by lower development costs, provisions, and write-offs during the current period.
Additionally, according to a statement, it was also credited to strong growth in ACWA Power’s operating income before impairment and other expenses and lower profit on account of one-off or non-routine expenses during the same period in the year prior.
Operating income in the nine months was SR1.8 billion ($479 million), an 11% increase of SR189 million ($50.3 million), compared to the same period in 2022, achieved despite plant outages in four facilities.
On the other hand, ACWA Power aims to reduce half of carbon emissions by 2030 and achieve net zero by 2050.
