PTT Exploration and Production Plc (PTTEP) is expanding into the clean energy business by acquiring a 25.5% share in the Seagreen Offshore Wind Farm, the largest offshore wind power generation facility in Scotland, for £522 million, or around 24 billion baht.
The company, through its wholly owned subsidiary FutureTech SG Pte, bought a 50% stake in TotalEnergies Renewables Seagreen Holdco Ltd from France-based TotalEnergies SE Group.
TotalEnergies Renewables Seagreen Holdco holds a 51% share in Seagreen, so upon completion of the transaction, FutureTech will make an indirect investment in the wind farm of 25.5% proportionately.
“The investment in Seagreen marks a significant step for PTTEP in diversifying into the high-growth potential of the clean energy sector,” said Montri Rawanchaikul, chief executive of PTTEP.
Seagreen, with power generation capacity of 1.1 gigawatts, is located in the North Sea, 27 kilometres off the east coast of Scotland, where it has strong wind potential.
The facility is operated by SSE Renewables Services (UK) Co, which holds a 49% share.
Seagreen serves power demand in the UK and is expected to displace more than 2 million tonnes of greenhouse gas emissions from electricity generated by fossil fuels annually.
The investment gives PTTEP experience in offshore renewable energy operation, preparing it for further investments in clean energy businesses, he said.
“This investment entails low risk as it is in the operational phase, with stable cash flow, working in partnership with globally experienced players in a country with supportive policies to propel continued development of the offshore wind market,” said Mr Montri.
PTTEP is also cooperating with South Korea-based Posco Holdings, an industrial conglomerate, to explore business opportunities across the entire blue and green hydrogen value chain as well as carbon capture and storage projects.
The company previously jointly developed a large-scale green hydrogen project in Oman.
In another development, the PTTEP subsidiary FutureTech Energy Ventures has started supplying electricity generated from solar energy to onshore petroleum production in the Sirikit 1 field in the northern province of Kamphaeng Phet. This is expected to reduce gas-generated electricity usage and greenhouse gas emissions.