ACWA Power has signed a Memorandum of Understanding (MoU) with Thai government agencies to establish large-scale renewable-powered green hydrogen and derivatives production facilities at an investment of $7 billion.

The project aims to produce 225,000 tonnes of green hydrogen annually, which is equal to 1.2 million tonnes of green ammonia annually in Thailand for both domestic energy consumption and international exports.

The MoU was signed by the state-owned electrical company Electricity Generating Authority of Thailand and ACWA Power, PTT (EGAT). According to the statement, the parties will now start the project’s feasibility study. Thailand wants to become carbon neutral by 2050 and has no emissions at all by 2065.

Another Memorandum of Understanding (MoU) was signed between EGAT and the Ministry of Investment of Saudi Arabia (MISA), according to a separate press release from EGAT. This MoU covers cooperation on energy transition, the EV ecosystem, operation and maintenance services, and other related operations to achieve decarbonization.

The energy agreement between Saudi Arabia and Thailand includes petroleum, hydrogen, carbon capture and storage, renewable energy, and low-carbon technology.

PTT and the Saudi Ministry of Investment (MISA) signed an MoU earlier this month to explore and grow their petrochemicals business in Saudi Arabia.