PTT Global Chemical Plc (PTTGC), Thailand's largest petrochemical producer by capacity, has announced its commitment to cut greenhouse gas emissions by 20% within 2030 in a move to help the government fight climate change.
The company also plans to achieve a net-zero goal by 2050.
The net-zero goal, which is also known as carbon neutrality, requires countries to strike a balance between emissions and absorption of carbon dioxide from the atmosphere.
The commitment will set a direction for PTTGC to spend a budget of US$20 billion to curb greenhouse gases between 2021 and 2050. Around $1 billion is expected to be used for this environmental mission by 2030.
Kongrapan Intarajang, chief executive of PTTGC, said the greenhouse reduction initiative will be carried out along with its business growth expected at an annual average of 4% until the mission is completed.
At present, its annual petrochemical production capacity of 14.07 million tonnes emits 8 million tonnes of carbon dioxide equivalent.
The emissions are expected to increase to 9.7 million tonnes in 2030, compared with total emissions of almost 500 million tonnes of carbon dioxide equivalent in Thailand.
PTTGC will spend the budget under its direct spending plans to increase production efficiency, use more clean energy resources and adopt new technology to save more energy at factories.
These projects will be carried out in tandem with indirect spending plans. They include more focus on production of high-value added products and bio-based petrochemical products.
In August, PTTGC and US-based Cargill Incorporated announced cooperation to jointly develop a biopolymer production facility worth $600 million, or 20 billion baht, in Nakhon Sawan.
The two companies have made a 50:50 investment to establish NatureWorks LLC, which specialises in polylactic acid and biodegradable plastics from agricultural products.
In July, PTTGC announced its acquisition of Frankfurt-based Allnex Holding GmbH, a move that will place PTTGC among leading companies in the high value-added product market.
PTTGC is also interested in ways to reduce carbon dioxide through reforestation projects and carbon capture storage technology (CCS).
The companies will seek out startups which are developing CCS technology.
Mr Kongrapan said it is important to keep businesses in line with the net-zero goal.
"The commitment to the net-zero goal encourages us to make a balance between business growth and sustainability," he said.