PTT Plc, Thailand's national energy company, has realigned its strategy to balance business growth with sustainability, and advance both its own and the nation's goals of achieving carbon neutrality and net-zero emissions, says its chief executive officer.
PTT president and CEO Kongkrapan Intarajang recently told the Bangkok Post the company is focused on balancing business growth with sustainability to ensure Thailand's national energy security. PTT has set an ambitious target of reaching carbon net zero by 2050, well ahead of the national goal of 2065 agreed upon at COP26 in Glasgow, Scotland.
To drive business growth, PTT has divided its operations into two main areas -- the hydrocarbon and power business, and the non-hydrocarbon business. The hydrocarbon and power sector will focus on sustainable growth by reducing carbon emissions and aligning with global trends, such as the integration of hydrogen energy and carbon capture and storage (CCS) technology. Meanwhile, its existing businesses -- upstream, downstream, and power--will enhance decarbonisation efforts and boost competitiveness.
On the non-hydrocarbon front, PTT is revisiting sectors such as electric vehicles, logistics, and life sciences to improve their market appeal and strategic viability. "Previously, investments in this area were scattered. Investors are looking for more substantial outcomes, and we need to refocus on smart investments, doing what we excel at while simultaneously advancing sustainability, reducing greenhouse gases, and growing EBIDA," Mr Kongkrapan noted.
He acknowledged the CCS business carries significant costs but views it as an opportunity aligned with global megatrends. The entire PTT group will collaborate on CCS efforts.
As for hydrogen energy, while current demand remains low, the country's latest Power Development Plan (PDP) includes it as 5% of the total energy mix for electricity generation.
With hydrogen poised to become a global trend in green energy, PTT is working closely with the government to develop infrastructure to support future hydrogen imports, the CEO said.
Jatuporn Buruspat, permanent secretary of the Ministry of Natural Resources and Environment and a member of PTT's board, stressed the importance of private sector cooperation in reducing carbon emissions.
He highlighted PTT's pivotal role in driving Thailand's progress toward meeting its carbon reduction commitments. Thailand expects its carbon emissions to peak at 388 million tonnes by 2025, up from 269 million tonnes in 2021. The country has pledged to the United Nations to reduce emissions by 40% by 2030 and achieve carbon net zero by 2065. Notably, PTT Group accounts for nearly one-sixth of the country's total CO2 emissions, making its decarbonisation and CCS efforts critical, said Mr Jatuporn.
Mr Jatuporn added that while Thailand contributes only 0.8% of global CO2 emissions, it ranks among the top 10 countries most vulnerable to climate change, given its more than 3,000 kilometres of coastline. He urged that every effort be made to reduce carbon emissions and proposed additional measures, including the complete phasing out of coal use in Thailand within the next 10 years.
