ACWA Power Signs MoU to Support Decarbonisation Journey in Thailand
ACWA Power, an energy company based in Saudi Arabia, has signed a deal to help Thailand reach its goals of reducing carbon emissions through a project to develop green hydrogen and derivatives.
A press release says that the company signed a memorandum of understanding with PTT Public Co. Limited, which is Thailand's national integrated energy company, and the Electricity Generating Authority of Thailand, which is a state-owned electric power company.
As part of the MoU, ACWA Power, PTT, and EGAT will start working together on a plan to build large-scale, renewable-powered green hydrogen and derivatives production facilities in Thailand. These facilities will be used to produce energy for Thailand and to export to other countries.
With an estimated $7 billion investment, the Southeast Asian country wants to make about 225,000 tonnes of hydrogen per year, which is the same as making 1.2 million tonnes of green ammonia per year.
Paddy Padmanathan, vice chairman and chief executive officer of ACWA Power, said, "We are excited about the possibility of supporting green hydrogen and derivatives research and development in Thailand, a country that shares our vision of delivering clean energy that drives the sustainability agenda and supports important climate action around the world reliably and responsibly."
A press release said that Thailand wants to use green hydrogen as an alternative energy source in the coming years. This is part of its plan to meet its promise to be carbon neutral by 2050 and have net zero emissions by 2065.
Furthermore, it stated that using green hydrogen will aid in meeting emissions reduction targets and establishing a low-carbon circular economy at a domestic level.
Padmanathan says that ACWA Power has been quickly growing its portfolio. It now has $75 billion in assets and a 110 per cent increase in profits for 2022.
While the company's present capacity is 42 gigawatts, he claims the amount may be increased by up to three times to reach 150 gigawatts.
At the moment, the company makes 6 million cubic metres of desalinated water, but Padmanathan said that by 2030, that number is expected to rise to 15 million cubic metres.
ACWA Power, which is part-owned by Saudi Arabia’s Public Investment Fund, is also currently producing up to 240,000 tons of green hydrogen, he added.
A recent bourse filing showed that the energy giant's profits for the first nine months of 2022 were SR883.4 million ($235.1 million), up from SR419.9 million for the same time last year.
The rise was driven by lower costs of development, provisions, and write-offs during the current period.
A statement said that it was also because of strong growth in ACWA Power's operating income before impairment and other expenses, as well as a lower profit the year before because of one-time or unusual expenses.
Operating income for the first nine months was SR1.8 billion, which was an increase of 11 per cent, or SR189 million, compared to the same time last year. This was done even though four facilities had to be shut down for maintenance.
Source: Arab News