Thai industrial authority partners with Japanese firms for green utility project

The Industrial Estate Authority of Thailand (IEAT) is collaborating with Japanese firms, IHI Corporation and IHI Asia Pacific (Thailand) Co, on a green utility project at the Smart Park Industrial Estate in Rayong. The initiative, aimed at encouraging eco-considerate manufacturing, will involve a feasibility study on the development of renewable energy and green infrastructure.

The study marks the first phase of the project, expected to last a year. The IEAT aims to curtail greenhouse gas emissions in its industrial estates by 40% by 2030, according to Veeris Ammarapala, IEAT governor. After the study, an environmentally friendly pilot factory will be constructed in phase two.

The third phase involves a decision on collaboration with the factory owner for product commercialisation. Veeris Ammarapala noted that investors at Smart Park are keen on utilising renewable power for manufacturing, in consonance with the global clean energy trend.

Factories are under pressure to green their operations to circumvent non-tariff barriers on their exports to regions such as the European Union. The EU is introducing a carbon border adjustment mechanism (CBAM) in a transitional phase to diminish the import of carbon-intensive products. The CBAM impacts iron, steel, aluminium, cement, fertiliser, electricity, and hydrogen industries.

Investors are pressuring the authorities to advance renewable energy development as a protection against trade barriers, according to Ammarapala. The IEAT, which operates 68 industrial estates across 16 provinces and a deep-sea port at Map Ta Phut in Rayong, views the green utility project as a way to back government efforts to foster clean energy.

The government has set a target for renewable energy to account for 50% of fuels used for electricity generation in Thailand, stated Industry Minister Pimphattra Wichaikul. The increased supply of renewable energy is perceived to make Thailand more attractive to foreign investment.

The IEAT has previously collaborated with several agencies on programmes aimed at reducing greenhouse gas emissions in its industrial estates, with 62 factories in the schemes having cut up to 175,078 tonnes of carbon dioxide equivalent, reported Bangkok Post.

In related news, the introduction of Thailand’s Green Utility Tariff (GUT) marked a pivotal moment, attracting foreign investment and advancing renewable energy use, aligning with the country’s climate goals.