Saudi Arabia ready to invest in hydrogen energy production in Thailand
Joint working group to monitor and push forward energy cooperation between the two countries, says Pirapan
Saudi Arabia is now focusing on future energy sources and is considering investing in this sector in Thailand, particularly hydrogen energy, Energy Minister Pirapan Salirathavibhaga said on Friday following his recent visit to Riyadh.
The Thai delegation held discussions with Saudi Minister of Energy Prince Abdulaziz bin Salman Al Saud.
The meeting also included leading business organisations from Saudi Arabia, such as Saudi Aramco, a leading global oil company, SABIC, a major global chemical producer, ACWA Power, an electricity production business, and SEEC, the agency overseeing energy production and usage efficiency in Saudi Arabia.
Pirapan said that the discussions to strengthen relations, after 32 years of diplomatic coldness, were held within the trade framework, including other issues that would benefit both countries.
The mission to follow up on energy cooperation under the eight previous memorandums of understanding (MoU) signed in 2022 received positive responses from Saudi Arabia. Both parties established a joint working group to monitor and push forward energy cooperation between two countries, he said.
"This is crucial because if hydrogen can be developed at a lower cost, it could replace gas, a key component in electricity production, reducing electricity production costs and lowering electricity bills for the public. Saudi Arabia has committed to invest in hydrogen energy in Thailand," he said.
The investment in hydrogen energy production in Thailand represents a major deal between Thailand and Saudi Arabia, expected to materialise quickly, as both the public and private sectors of both countries aim to develop and invest in this area.
Additionally, there is a proposal to extend cooperation in other areas, including the transfer of knowledge and energy technology, and assistance in establishing Thailand's strategic oil reserve system infrastructure, he said.
Saudi Arabia has responded positively, especially in supporting the establishment of a National Energy College in Thailand, which will enhance knowledge and energy personnel that will benefit Thailand in the future.
"During the visit to Saudi Arabia, we observed the working processes, advanced technology, and innovations of leading global energy companies. Saudi Arabia is willing to transfer this knowledge to Thailand. This can be seen as an additional 9th agreement, beyond the original eight MoUs. Both countries have now established joint working groups on all discussed cooperation issues," Pirapan said.
Furthermore, Saudi Arabia was invited to consider investing in energy infrastructure, oil refineries, oil storage facilities, ports, and oil pipelines in potential areas of Thailand to enhance energy security and the Strategic Petroleum Reserve (SPR).
This would make Thailand a distribution hub for oil to other Asian countries, reducing transportation costs. Saudi Arabia is interested and ready to study Thailand's SPR system as soon as Thailand is prepared.
Saudi Arabia is also ready to cooperate with Thailand in clean energy production, emphasising policies to drive energy towards carbon neutrality and reducing carbon dioxide emissions.
Pirapan also revealed that currently, Saudi Arabia has high domestic electricity demand but insufficient production. There is opportunity for Thai investors interested in building power plants in Saudi Arabia, he said.
