Thailand is poised to launch its first commercial green hydrogen project in partnership with a Chinese firm to catalyze the country's transition to green and low-carbon practices.

Chinese new energy company Beijing Mingyang Hydrogen Technology Co., Ltd., on Friday, signed an agreement with Thailand's first liquefied natural gas distributor, IBCLNG Co., Ltd., to jointly develop a 25-MW electrolysis project.

Under the deal, IBCLNG will source cutting-edge electrolyzers from Mingyang Hydrogen. The Chinese company will provide technical expertise and personnel support to construct an integrated "generation, storage, and utilization" green hydrogen infrastructure in Thailand.

The resulting green hydrogen will be channeled downstream to steel enterprises, fostering the "green" production of environmentally friendly steel, reducing carbon footprints, and enhancing production sustainability.

Charernsook Siriyong, deputy managing director of IBCLNG, said hydrogen is significant as a clean and versatile secondary energy source and pivotal in the global energy transition.

He stated that Thailand predominantly relies on gray hydrogen derived from fossil fuel combustion or industrial by-products, releasing substantial carbon dioxide during production.

He highlighted that green hydrogen, produced through water electrolysis using renewable energy sources like wind, hydropower, and solar, offers a carbon-neutral alternative.

Charernsook said that the European Union is gradually implementing a carbon border adjustment mechanism, imposing "carbon tariffs" on products such as cement, aluminum, fertilizers, and steel imported from countries and regions with relatively lenient carbon emission restrictions.

"Failing to do so could increase future export costs and result in losing the first-mover advantage in the market," he said.

Shen Zhongmin, vice chairman of Mingyang Hydrogen, said that hydrogen is a major source for green energy, noting that the collaboration is not only about selling products but also providing a high-quality international cooperation solution for climate change.

Thailand is committed to achieving carbon neutrality by 2050 and net-zero emissions by 2065. The government has laid out a roadmap to achieve the goals, urging relevant stakeholders to take actions to reduce greenhouse gas emissions.

Some major energy companies in Thailand have already started investing in hydrogen technology and supplying hydrogen for electricity generation to businesses in industrial parks or converting hydrogen into synthetic fuels for easier transportation and use.