Thammasak Sethaudom, CEO of Siam Cement Group. (Photo: SCG)
Thailand's cement giant, Siam Cement Group (SCG), is bullish on the prospects of the green economy and has announced plans to invest 40 billion Thai Baht (about 1.1 billion USD) in sustainable and green innovation fields in 2024. The company aims to expand its development of hydrogen energy applications, particularly to achieve its strategic goal of green mobility, while also launching the second generation of low-carbon cement.
Thammasak Sethaudom, the newly appointed President and CEO of the group, stated that venturing into hydrogen energy is a risk diversification strategy. He emphasized the importance of keeping pace with global trends and the development of electric vehicles while avoiding the impact of traditional industries. "We all know that EV is the trend, and we won't miss it as we have also invested in EV and its supply chain. However, we are also diversifying risk. We are exploring new businesses as well," he said.
In December 2023, Siam Cement Group, in collaboration with Thailand's largest conglomerate, Charoen Pokphand, and Japan's largest car manufacturer, Toyota, established the Commercial Japan Partnership Technologies Corporation (CJPT). This joint venture aims to develop competitive green fuels, including hydrogen, and enhance technological assistance to help Thailand achieve carbon neutrality.
The Japan-Thailand multinational cooperation covers transportation and energy solutions, with the goal of applying hydrogen energy to various vehicles, including large trucks and vans, to support Thailand's logistics industry in achieving carbon reduction targets.
After accumulating sufficient experience in charging stations and vehicle battery production, Siam Cement Group began developing more comprehensive electric vehicle solutions in 2021 to meet the diverse needs of customers, including electric vans, forklifts, and trucks. However, Thammasak acknowledged the limitations of battery capacity for long-haul truck transportation, leading to the decision to invest in alternative energy sources like hydrogen.
Furthermore, in other renewable energy aspects, Siam Cement Group plans to expand its investment in solar photovoltaic energy. Currently generating a total of 450 megawatts (MW), the company aims to reach 1,000 MW within the next five years. Additionally, they plan to develop energy storage batteries. In terms of low-carbon cement, Siam Cement Group also announced the launch of the second generation in 2024, expecting a 5% reduction in carbon emissions compared to the previous generation.
