PTT to promote adoption of hydrogen and CCS technologies
Sustainability the focus of new investment plan as recently appointed CEO takes over the helm
Large organisations with substantial assets need capable leadership to navigate through crises in the fast-changing business landscape, disrupted by multiple factors. Among them is PTT PCL, a state enterprise listed on the stock exchange, whose new CEO Kongkrapan Intarajang is already reviewing the company’s business strategies as part of the new 5-year investment plan (2025-2029).
The plan aligns with the new PDP 2024 policy, promoting hydrogen use in Thailand, which is seen as a clean energy source to help the country achieve its Net Zero target.
Kongkrapan, who took over the reins last month, unveiled PTT’s vision dubbed “Together For Sustainable Thailand, Sustainable World,” saying that the company aims to operate on the principle of “balanced sustainability” in economic, social, environmental and governance contexts, aspiring to be a national energy company that benefits Thailand and all stakeholders with transparency and good governance.
PTT’s new 5-year investment plan (2025-2029) has an 89 billion baht budget, alongside a future investment budget of 106.932 billion baht.
The plan will be submitted to the board for approval in August with clarity expected by September-October in relation to the investment amounts for ongoing businesses and potential downscaling or withdrawal from certain ventures.
“PTT needs to evaluate underperforming businesses and possibly adjust processes or collaborate with knowledgeable partners. We won't abandon energy businesses but we will focus on aligning with global trends,” Kongkrapan stated.
Given the global changes, business operations must constantly evolve, he added. PTT is thus reviewing its business plans, continuing with promising ventures, and focusing on being a strong national energy company that grows sustainably on a global scale. The business must balance economic, social, and environmental factors, following the company's four-pronged management vision. These are:
Sustainable business services: PTT will focus not only on stability but also on ensuring reasonable pricing for continuous operation. The company aims for sustainable profits without short-term gain, balancing the interests of shareholders and stakeholders.
Beneficial investments: With both domestic and international businesses, PTT must adapt swiftly to global volatility. The company will expand successful ventures and exit underperforming ones wisely.
Building confidence: Business operations and management will be transparent, with a strong emphasis on corporate governance. Clear communication will build confidence among all stakeholders.
Fostering collaboration: PTT will leverage its skilled workforce to create synergies within the group, strengthening its business.
Kongkrapan stated that PTT will adopt government policies, particularly those in the new Thailand Power Development Plan 2024-2040 (PDP 2024), to increase clean energy production to 51% of total electricity generation.
PTT will play a role in promoting hydrogen fuel and carbon capture and storage (CCS) technologies, contributing to Thailand's goal of achieving Net Zero emissions by 2065. The PDP 2024 draft targets 5% hydrogen use mixed with natural gas for electricity production.
Hydrogen is considered a clean energy source that will play a crucial role in reducing carbon dioxide emissions. Additionally, Carbon Capture and Storage (CCS) technology is seen as a vital component for future reductions in carbon dioxide.
Currently, PTT is investing in hydrogen sources abroad, particularly in the Middle East, to study and adopt the technology. If the investments prove worthwhile, PTT will expand further. If the Thai government promotes hydrogen integration into natural gas pipelines, PTT is ready to follow. The company also plans to extend hydrogen use to mobility businesses.
“To strengthen against external business impacts, PTT will enhance internal operations and efficiency through technology, digitalisation, and AI,” said Kongkrapan. Additionally, PTT will implement lean organisation practices alongside digital transformation, starting from a position of strength to foster acceptance at all levels and cultivate a culture of adaptability and readiness for sustainable growth.
Despite global oil market volatility, PTT will manage costs to help keep prices reasonable for the public. PTT has also encouraged biodiesel producers to purchase palm oil from farmers at better prices, addressing low palm oil prices and directly benefiting farmers.
Regarding the government’s effort to explore the overlapping maritime areas between Thailand and Cambodia (OCA), PTT confirms its participation, given the importance of national energy security.
“As a national energy company, PTT will align with government policies, considering the public and all stakeholders based on balanced energy security, appropriate profits, and social and environmental considerations,” Kongkrapan said.
