Thai Oil Plc (TOP), Thailand's largest oil refining company by capacity, has acquired a stake in US-based startup Versogen, a maker of "green hydrogen".
Versogen uses electricity produced by solar and wind energy to produce hydrogen for use in industries, part of efforts to help reduce carbon emissions.
This hydrogen-generating solution also promises lower production costs for hydrogen fuel cells.
TOP president and chief executive Wirat Uanarumit said the financial injection will support Versogen's development of clean energy technology, which is expected to be in high demand in the future.
He said green hydrogen can be used as an environmentally friendly feed stock in the manufacturing sector, which will support the government's carbon neutrality goal, a balance between carbon dioxide emissions and absorption.
TOP did not reveal the size of its Versogen share purchase.
Prime Minister Prayut Chan-o-cha vowed during the 26th UN Climate Change Conference in Glasgow late last year that Thailand will be more aggressive in addressing climate change, striving to reach carbon neutrality by 2050 and a net-zero target, a balance between greenhouse gas emissions and absorption, by 2065.
The stake acquisition, made through TOP Ventures, the innovation scout unit of TOP, is under the company's value diversification strategy.
Mr Wirat said TOP expects its new non-oil business development, including the investment in Versogen, to make up 10% of net profit by 2030. The profit from oil refining and petrochemical businesses will each account for 40%, while the remaining 10% will be generated by TOP's electricity business.
TOP aims to hit carbon neutrality by 2050, and net-zero by 2065.
The company earlier announced fundraising plans, including the sale of a 10.7% share in Global Power Synergy Plc (GPSC) to PTT Plc, as part of its efforts to add value to oil, petrochemical products and electricity, which will help drive the company's business growth in the future.
PTT is the parent company of both TOP and GPSC.