Thailand and Saudi Arabia have recently signed several agreements to cooperate in sectors including energy and tourism as the two nations restore full diplomatic ties. Specifically, the parties signed an energy cooperation agreement, which includes a memorandum of understanding (MoU) to establish a Saudi-Thai Cooperation Council and another to promote tourism. In parallel, Thailand and Saudi Arabia will explore measures to promote more direct investments.
The energy pact will cover petroleum, hydrogen, carbon capture and storage, renewable and low-carbon technology. The agreement consists of two MoUs, the first covering a green hydrogen/ammonia project in Thailand. It will be conducted by the majority state-owned energy firm PTT Plc and the Electricity Generating Authority of Thailand (EGAT), along with Acwa Power Co of Saudi Arabia. The deal, which is worth USD 7 billion, aims to produce around 225,000 tons of green hydrogen each year. The second MoU between Saudi Arabia’s Ministry of Investment and EGAT covers various types of clean energy and energy transition.
Thailand has pledged to become carbon neutral by 2050 and reach net zero emissions by 2065. The Southeast Asian nation is implementing a six-point plan to ensure progress toward carbon neutrality and net zero emissions. Part of this plan is to promote eco-friendly or green businesses and boost carbon credit trading in the private sector. Then the government will connect clean energy trading platforms with the carbon credit market.
(Sources: Bangkok Post; Carbon Credits)