Engineer your own future
望む未来は⾃分で創る。

A Survey on Opportunities of Carbon Capture
Utilization and Storage (CCUS) in Thailand’s
Oil & Gas, Energy and Chemical Industry
Final ReportTeam Members
From Faculty of Engineering, TNI

Assoc. Prof. Jintawat Chaichanawong, D.Eng.

Head of Advanced Material Processing Research Laboratory

Project Leader

Assoc. Prof. Nuttapol Limjeerajarus, Ph.D.

Head of Research Center for Advanced Energy Technology

Asst. Prof. Pornchai Nivesrangsun, Ph.D.
Head of Automotive Engineering Program

Mahunnop Fakkao, Ph.D.

Associate Dean of Strategic Planning and Student Affairs

Titirat Vivithkeyoonwong

Lecturer, Industrial Engineering Program2

Outline• Introduction• Role of the Government Agencies and Public Organizations• Current Plan and Policy of Private Sector in Thailand• Conclusion

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A Survey on Opportunities of Carbon Capture Utilization and Storage (CCUS)
in Thailand’s Oil & Gas, Energy and Chemical Industry

Introduction

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Introduction

Thailand’s GHG emissions

Total GHG emissions
by sector in 2018

GHG emission inenergy sector in 2018

GHG emission in
IPPU sector in 2018

Key challenges: the energy sector is the main source of GHG emissions.
Source: Thailand’s Fourth National Communication, 2022

5Introduction• At COP21, Paris agreement globallyaims to keep temperature rise thiscentury below 1.5 ºC.
• Reducing Global CO2 for 45% by 2030
• Net Zero Global Emission by 2050

• Thailand’s PM announces Long-term
Greenhouse Gas Emission Development
Strategy at COP26• Reducing GHG emission by 20% compared
BAU in 2030
• Carbon Neutrality by 2050
• Net Zero GHG before 2065

• Key challenges: Carbon Capture
Utilization and Storage (CCUS)
TechnologySource: Global Compact Network Thailand6

Overview of the Project
What is status of CCUS technology andsupporting measures in Thailand ?
Objectives of this research
1. To survey the current status of CCUS projects
and the readiness of such technologies inThailand’s oil & gas, energy and chemicalindustries.
2. To study the progress of research anddevelopment on CCUS technology inThailand.
3. To comprehend the government’s policies,
supporting schemes, related law andregulations on CCUS.

Diagram of main CCUS pathways

Source: Kearney Energy Transition Institute7

A Survey on Opportunities of Carbon Capture Utilization and Storage (CCUS)
in Thailand’s Oil & Gas, Energy and Chemical IndustryRole of the Government Agencies andPublic Organizations

8Thailand's Institutional Mechanisms forClimate Change• Thailand established the National Committee on Climate Change Policy (NCCC), whichchaired by the PM.
• The NCCC is composed of 7 subcommittees:
1) Climate Change Policy and Planning Integration
2) Climate Change Knowledge and Database3) Climate Change Negotiation and International Cooperation
4) Public Relations and Actions for Climate Empowerment
5) Climate Law
6) Mobilization of GHG Mitigation with Carbon Sequestration in LULUCF Sector
7) Mobilization of GHG Mitigation with CCUS Technology Implication

9Thailand's Institutional Mechanisms for
Climate Change
The Subcommittee on the Mobilization of GHG Mitigation with CCUS
Technology Implication is responsible for• Providing suggestions and recommendations on GHG mitigating capacity ofCarbon Capture and Storage technology and the carbon storage andutilization.
• Suggesting mechanisms or measures (e.g., legal, economic, and otherrelated measures) for incentivizing, developing, and applying suchtechnology.

10Thailand's Institutional Mechanisms for Climate Change
The Cabinet

National Committee on Climate Change Policy (NCCC)
Subcommittee on Climate Change Policy
Climate ChangePolicy & Planning
Integration(MNRE/ONEP)

Climate Change
Knowledge&Database(MNRE/ONEP)

Climate Change
Negotiation &International Cooperation(MNRE/ONEP)

Public Relations &Actions for ClimateEmpowerment(MNRE/DEQP)

Mobilization of GHG
Mitigation with Carbon
Sequestration in LULUCF Sector(MNRE/DMF)

Climate Law(MNRE/ONEP)

Mobilization of GHG
Mitigation with
CCUS Technology Implication(MOE/DMF)

LULUCF: Land Use, Land-Use
Change and Forestry

Carbon Sinks

Policy & Measure
Adaptation(Draft) Action for(Draft) Thailandʼs
Climate Empowerment Climate Change(ACE) Plan
Act B.E. ....

Mitigation(Draft) Mechanisms andguidelines for carbon
credit management

NaturalForest

Enabling Environment

EconomicForest

Green Area

CCUS
EnergyCementetc.

Tools & Supporting Mechanisms
M&E / MRV System

TGEIS

Risk Map Database

Negotiation Database

Operational Support Database System
M&E: Monitoring & Evaluation
MRV: Measuring, Reporting & Verification
TGEIS: Thailand Greenhouse Gas Emissions Inventory System

Notifications of the
Miistry/Regulations/
Guidelines(TGO/ONEP)International

CarbonCreditPlatform(TGO/ONEP)(CDM, JCM, ITMOs)

Domestic(T-VER)

Cap&Trade
Incentive

Research & Technology
Development (R&D)(MHESI)

Carbon Tax
Carbon Label

Source: คุณจิรวัฒน์ ระติสนุ ทร การประชุมเชิงปฏิบตั กิ าร “Innovation Roadmap for Industrial Decarbonization” วันที< => มิถนุ ายน =ABA ณ อาคารเอนกประสงค์ บริ ษัท ปูนซิเมนต์ไทย จํากัด (มหาชน)ITMOs: Internationally Transferred
Mitigation OutcomesThailand's Institutional Mechanisms for
Climate Change
Critical Changes in 2023

•Department of Climate Change and Environment

Thailand is setting up a new department under the Ministry of Natural Resources andEnvironment, named the Department of Climate Change and Environment, to respond for
proposing and developing strategies, plans, and programs on climate change and GHG
reduction.
•Thailand's Climate Change ActMinistry of Natural Resources and Environment is responsible for developing firstThailand's Climate Change Act, which will feature mandatory regulations, carbon-credit
management, financial mechanisms, and targets.
12Thailand's Climate Change Policy
Thailand has integrated climate change policies, strategies, and plans into its national, sectoral, andmunicipal plans to address the climate change problem systematically and effectively.
National Plan

National Strategy (2018-2037), National Economic and Social Development Plan, Climate Change MasterPlan, Nationally Appropriate Mitigation Action (NAMA), Thailand's Nationally Determined Contribution(NDC), and Long-Term Low Greenhouse Gas Emission Development Strategy (LT-LEDS).
The 13th National Economic and Social Development Plan includes development strategies to promote
CCUS technology under the 10th milestone (Thailand has a circular economy and low-carbon society):• The promotion of CCUS technology in energy and industrial sectors, investment support in CCUS's
research and development• Increase financial and fiscal incentives to attract investment from the private sector andinfrastructure development for transportation of carbon storage

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Thailand's Climate Change PolicyLong-Term Low Greenhouse Gas Emission Development Strategy (LT-LEDS)

To achieve the NDC and LT-LEDS targets, GHG mitigation measures implemented in the energy sector
are classified into three main measures: energy efficiency improvement/technology
switching, implementation of renewable energy, and carbon capture and storage (CCS).
• The energy efficiency improvement and the deployment of natural gas with CCS and coal with CCS
power plants are expected to increase to 43% in 2050 compared to the current technology.
• The share of renewable electricity is expected to increase to 33% of the total electricity generationin 2050.
• Bioenergy with a CCS power plant is needed to achieve the target in 2050.
• In manufacturing industries, the deployment of CCS in industries will play an important role in thechemical and the non-metallic sub-industries. The estimated captured CO2 will be 18 MtCO2eq in
2050
Source: Thailand's Mid-century, Long-term Low Greenhouse Gas Emission Development Strategy, 2021.

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Thailand's Climate Change Policy
Sectoral Plan

• Energy Sector Plan: MOE is developing details in the National Energy Plan 2022 Framework, consistingof 5 plans: Power Development Plan 2018-2037 (PDP), Alternative Energy Development Plan 2018-2037(AEDP), Energy Efficiency Plan 2018-2037 (EEP), Gas Plan 2018-2037, and Oil Plan 2018-2037.
• Transport Sector Plan: Thailand's Transport Infrastructure Development Plan 2015-2022• Industrial Sector Plan: National Industrial Development Master Plan 2012-2031, Thailand's Industrial
Development Strategy 4.0 (2017-2036), Thailand's Green Industry Initiative.
• Waste Sector Plan: Draft National Waste Management Action Plan 2022-2027, Thailand's Roadmap on
Plastic Waste Management 2018 – 2030).
• Enhancing the potential use of CCUS technology in power generation is included in the Power
Development Plan 2018-2037.
• In a mid-term period, Thailand needs support to enhance the potential use of CCS and CCUS
technologies in industries and power plants, and bioenergy with CCS.

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Thailand's Climate Change Policy
Municipality Plan

• The draft Bangkok Master Plan on Climate Change 2021-2030, sponsored by Japan International
Cooperation Agency (JICA).
• To reduce GHG emissions by 19% compared to the BAU from the base year of 2018 by 2030 and continually
reduce GHG emissions toward a "net-zero emission city" by 2050.
• The mitigation measures of GHG emissions under this master plan cover 4 sectors: transport, energy, waste andwastewater, and green urban planning.
• The main sectors for GHG emissions reduction in this plan are energy and transportation (94% of the total)• Saraburi, Mae Moh and Rayong Models: A sandbox will be launched in Saraburi and Rayong tobecome a model for net zero GHG emissions, whereas Mae Moh will be a model for livable eco-friendly
city by rehabilitating brownfield and building three low-carbon economic zones.

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Key Parties and Their Supporting Roles in CCUS

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Challenges and Suggestions• A technology roadmap and business feasibility study in CCUS technology arenecessary to determine the R&D direction, funding policy, and incentive
measures for CCUS technology.
• The regulations related to CCS should be clarified.
• Lack of mechanisms for integrating cooperation and management from thepolicy level to the operational level.

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Challenges and Suggestions• The new incentive measures should be proposed to motivate the private
sector to invest and apply new technologies and innovations with high risk
and high cost.
• Domestic and international financial support is needed to enhance thepotential use of CCS and CCUS technologies in industries and power plants
and Bioenergy with CCS.
• Government should invest in the development of infrastructure to transfer
technology to industrial sectors.

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A Survey on Opportunities of Carbon Capture Utilization and Storage (CCUS)
in Thailand’s Oil & Gas, Energy and Chemical Industry

Current Status of CCUS
Implementation by Private Sectors

20Current Status of CCUS Implementation
by Private Sectors
We categorized the interviewed companies into three fields:
I. Petroleum (Oil&Gas) and Petrochemical Industries
II. Energy and Utilities Industry
III. Other Energy Intensive Industries

21I. Petroleum (Oil&Gas) and Petrochemical Industries
Current PlanCCS• Focus on feasibility study of CCS implementation.
• Companies having an access to carbon storage sites prefers CCS to CCU, and vice versa
for companies having no access.
• PTTEP is the spearhead of CCS implementation in Thailand, and the Arthit's pilot project is
supposed to be the 1st CCS in the country.
• From initial assessment, aquifers in the Gulf of Thailand has a carbon storage capacity of about
7,000 M ton, which could support carbon emission for about 20 years.
• CCS technologies are mature, but still too costly. Laws and regulations are not ready.
• CCS current cost (mainly the capture cost) is about 50 – 100 $/ton of CO2, capture cost sharesthe major cost.

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I. Petroleum (Oil&Gas) and Petrochemical Industries
Current PlanCCU• CCU is more attractive than CCS to petrochemical industries.
• Focus on research in lab scale to create value-added product from CO2.
• For example, CO2 is converted into acetone for producing perfume concentrate and foodcoloring agents.
• For post-combustion, need a carbon concentrating unit to increase from 9% after burner.
• For pre-combustion, plan to use H2 as a fuel.
• Chemical plant area utilization is optimized, and the area is limited. Difficult toinstall new capture units.
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Key Findings
CCS• CCS technology is ready, Laws are not. Public awareness is also very important.
• Clear and concrete laws and regulations are in urgent need. Must be effective by 2025 tomeet CCS plan in 2030.
• The government should support on the investment cost of initial infrastructure; mainpipelines.
• 110 Euro per ton of CO2 is the benchmark for wide-scale CCS implementation in 2030.

CCU• More attractive for no CO2-storage companies as it can produce value-added products inlong term (to be implemented after 2035).
• Limitation of plant area and diversity of feedstock of each plant are key barriers.
• Carbon capture is the most expensive process.
• Some companies are very good at finding foreign research fund. Could share lesson-learnt.
• Government should use policy driven strategy. CBAM also helps; Carbon tax; Carbon
measuring standards; Laws and regulations; penalty and incentives.

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II. Energy and Utilities Industry
Current Plan
• Plan to be carbon neutral in 2050, and net-zero in 2060.
• Companies having an access to carbon storage sites prefers CCS technologies.
• Plan to store carbon in aquifers or empty mines.
• Feasibility is extremely expensive. Need funds. sign MOU with many Japanese techproviders.
• Otherwise, they focuses on pre-combustion technologies.
• Some consider the use of H2 in gas-combined power plants and NH3 in the coal-fired.
• Others focus on energy efficiency improvement, especially RE based powerplant.
• CCU is still far from being fully implemented.
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Key Findings• Need subsidy from Thai government and METI through collaboration with Japanese firm.
• Large Japanese enterprises have an access to Thai companies and source of fund. No concern
about reliability of the enterprises.
• Through JCM program, some Thai companies mentioned that they have concerns
on reliability of Japanese SMEs and the program should be allow more versatility in selecting
partners and technologies.
• Investment in CCUS technology depends on technology, carbon pricing mechanism,a clear and firm government policy and regulation, tax benefit, funding, etc.
• Need government support such as measuring instruments, measurement methods,measurement standards for food industry.

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III. Other Energy Intensive Industries
Current Plan
• Study in CCUS technology to match the company’s production processes. Most industries
think that CCU is more cost-effective by converting carbon to more value-added products.
• Collaborate CCUS network with Thai and Foreign sectors to research and exchange
information to achieve carbon neutrality and net zero emission.
• Reduce CO2 emission by improvement of energy efficiency in production process or use ofbiofuel, biomass, oxyfuel,H2 instead of fossil fuels.
• Use carbon credit and carbon footprint to help company in the global market.
Key finding• Improve energy efficiency in production process.
• Use biofuel, biomass, oxyfuel to reduce CO2 emission.
• Need funding and technical support.

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Challenges and Suggestions• Investment in CCUS technologies depends on many factors, for example,• government policies and regulations, investment promotion policies,• availability of technology, human resources,• economic consideration, funding sources,• carbon price, carbon taxes.

• All parties should collaborate in the CCUS technology network to develop
clear and comprehensive policies and regulation to support carbon
neutrality and net zero mission.
• Further development of the CCUS technology and supportive funding
model is required to enhance the CCUS pilot project, innovation, readiness,and global market competitiveness of the domestic industry.

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Challenges and Suggestions• Implementation of CCUS on existing plants is very challenging
due to limitation of plant area and diversity of feedstocks of eachplant.
• Carbon footprint should be certified at the international level bygovernment authorities.
• Japanese organization should help Thai and ASEAN industries toprovide training and development opportunities to study a goodlearning experience of successful implementation of CCUS
technologies in Japan.

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Conclusion• Thailand established National Committee on Climate Change Policy withseven subcommittees including “Mobilization of GHG Mitigation with CCUS
Technology Implication”.
• Thailand government agencies currently develop the technology
roadmap and supporting measures for implementing CCUS technology toreach the net zero emission goal.
• Thailand researchers accompany with big players in Oil & Gas and Cement
industry to develop CCUS technology.

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Engineer your own future
望む未来は⾃分で創る。

Thank you very much
ご静聴ありがとうございました。

Contact us: jintawat@tni.ac.th / mahunnop@tni.ac.th