While electric vehicles (EVs) gain in popularity as an option to replace oil-powered cars, hydrogen still holds promise as a future energy that may suit mobility technology and help reduce air pollutants, says national oil and gas conglomerate PTT Plc.
The company, through its subsidiary Arun Plus, plans to make EVs domestically this year under a collaboration with Taiwan-based Hon Hai Precision Industry Co.
PTT is also working with other firms to develop hydrogen fuel.
The company announced earlier it signed a memorandum of understanding with the Electricity Generating Authority of Thailand and ACWA Power, a Saudi Arabia-based firm specialising in renewable energy, to co-develop green hydrogen and ensure its production is financially viable.
Making hydrogen fuel on a commercial scale to serve the automotive industry is not easy, though Japanese automakers have spent years studying development of this fuel, said Buranin Rattanasombat, chief of new business and infrastructure at PTT.
"If you ask me which one is better for cars -- a battery or hydrogen -- I would say it's a battery now," he said.
But this does not mean the development of hydrogen fuel should be ignored, said Mr Buranin.
Hydrogen has been used in large vehicles such as trucks and buses as well as in some factories, he said.
Making green hydrogen is expensive as the fuel is derived from renewable energy to split water molecules into oxygen and hydrogen.
Some countries eager to shift to hydrogen fuel may start with grey hydrogen, made from natural gas, though it is not the best choice to support campaigns to reduce carbon dioxide.
According to an article on energy transition on the World Economic Forum website, grey hydrogen is made through a steam reforming process, which generates a smaller amount of emissions than using black (bituminous) or brown (lignite) coal to make hydrogen.
"Making grey hydrogen at a gas separation plant or an oil refinery is also easier than producing batteries for cars," said Mr Buranin.
He said he believes one reason Japanese firms are interested in developing hydrogen fuel is this type of fuel requires fewer changes in oil-powered engine technology than those required if automakers shift to electric mobility technology.