Hydrogen and nuclear power to drive transition to clean energy

Hydrogen energy will be used for electricity generation starting in 2030 according to Thailand’s newest Power Development Plan (PDP) and the electricity generation plan of the Electricity Generating Authority of Thailand (EGAT).

The new PDP emphasises a higher share of renewable energy at 51%, predominantly solar, with 40% coming from natural gas and 5% from hydrogen. By the end of the plan, small modular nuclear reactors (SMRs) with a capacity of 600 MW will be introduced as an option.

Wattanapong Kurovat, director of the Energy Policy and Planning Office (EPPO), says that EPPO plans to gradually transition to natural gas, the cleanest fuel, as the primary energy source. The challenges lie in ensuring energy security and affordability. While solar energy is cost-effective, its instability remains a significant obstacle for Thailand’s transition. Advanced technology, particularly battery energy storage systems, will be essential to address this issue.

Batteries are expected to play a key role once their prices decrease. Hydrogen, with its growing role, will also address price and reliability concerns.

Chaiwat Kovavisarach, CEO of Bangchak Group and president of Bangchak, noted that the development of Artificial Intelligence (AI) demands immense energy, impacting global resources such as water and energy. This reliance may increase dependency on natural gas and nuclear power plants using SMRs as alternative energy sources.

AI processing and energy demands currently range from 300-1,000 MW and are expected to soar to 5 GW in the future, equivalent to the energy required by 100 Bangchak oil refineries. This underscores the need for new energy sources to support AI usage. Globally, nuclear energy is regaining attention, and Thailand should consider studying its feasibility.

For its part, energy conglomerate PTT aims to drive hydrogen fuel adoption in Thailand and promote CCS projects, according to its CEO and president Kongkrapan Intarajang. The draft PDP 2024 includes a 5% share of hydrogen, to be blended with natural gas for power generation.

Hydrogen, as a clean energy source, will play a key role in reducing carbon dioxide emissions and supporting Thailand’s goal of achieving net zero by 2065. CCS technology is also critical for future carbon reduction efforts..

“PTT has invested in hydrogen projects overseas to study and learn the technology, particularly in the Middle East. If these investments prove viable, the company is ready to expand further,” Kongkrapan said.

The Electricity Generating Authority of Thailand is actively promoting the use of SMRs to ensure grid stability, its governor Thepparat Theppitak says, explaining that these plants operate 24/7, emit no carbon dioxide, and offer competitive electricity costs due to the low price, abundance, and minimal usage of uranium fuel. Unlike oil and natural gas, uranium prices are not subject to market volatility or monopolisation.

EGAT has been studying nuclear technology and developing personnel for over 17 years to prepare for the potential establishment of nuclear power plants. The organisation has closely monitored SMR technology developments in countries like the United States, Russia, South Korea, and China to identify the most suitable technology for Thailand.

Akira Takahashi, president and managing director of Mitsubishi Power (Thailand) and MHI Power Project (Thailand), firmly believes that clean hydrogen energy offers a sustainable solution. Excess electricity from intermittent renewable sources such as solar and wind can be converted into clean hydrogen, enhancing grid stability and renewable energy integration.

However, the high initial cost of hydrogen production will necessitate significant investment from both private and public sectors over the next decade if commercial operations can start as expected by 2040.

Mitsubishi Power is currently exploring the potential of clean hydrogen energy through a partnership with Chevron Corporation's New Energies Company. Together, they aim to develop industrial-scale production and storage facilities for clean hydrogen energy.