Thailand Refining: Clean Energy Transition
- Thailand's refining industry is undergoing a notable shift toward cleaner energy to meet ambitious climate goals and evolving global demands.
- Local refineries are adopting sustainable practices to diversify energy sources and reduce reliance on fossil fuels.
- Thai Oil PLC, a PTT subsidiary, is spearheading the change with its Clean Fuel Project (CFP) at the Sriracha refinery in Chonburi province.
Thailand’s refining industry is aggressively pursuing a clean energy transition, driven by Euro-5 fuel standards and a commitment to carbon neutrality by 2050. This shift demands critically important upgrades to refineries, integrating renewable energy sources, and adopting carbon capture initiatives. Thai Oil’s Clean Fuel Project exemplifies this evolution, boosting capacity and producing cleaner fuels, while other refineries increasingly move away from high-sulfur fuel oil to meet stricter environmental regulations. News Directory 3 reports that Thailand’s refining sector is also exploring renewable energy integration and pioneering carbon capture and storage solutions through projects like the Eastern Thailand hub.With government incentives and international collaboration, Thailand is positioning itself as a potential energy hub in Southeast Asia. Discover what’s next for the Kingdom’s refining future.
Thailand’s Refining Industry Embraces clean Energy Transition
Updated June 04,2025
Thailand’s refining industry is undergoing a notable shift toward cleaner energy to meet ambitious climate goals and evolving global demands. The country aims for carbon neutrality by 2050 and net-zero greenhouse gas emissions by 2065, placing the energy sector at the forefront of this transformation.
Local refineries are adopting sustainable practices to diversify energy sources and reduce reliance on fossil fuels. These advancements include projects focused on Euro-5 fuel standards, renewable energy integration, and carbon capture and storage (CCS).
Thai Oil PLC, a PTT subsidiary, is spearheading the change with its Clean Fuel Project (CFP) at the Sriracha refinery in Chonburi province. The $4.8 billion initiative expands capacity from 275,000 barrels per day (bpd) to 400,000 bpd while producing cleaner fuels like Euro 5-quality gasoline and diesel.The project replaces older units with a new crude distillation unit (CDU) and incorporates hydrocracking and hydrodesulphurization to cut emissions.
The refining industry is also moving away from high-sulfur fuel oil due to stricter environmental regulations. Thai Oil’s upgrade will increase diesel and jet fuel output to 70-75% of total production, up from 56%, to meet regional demand for cleaner fuels. The Euro 5 standards, effective since January 1, 2024, highlight the industry’s commitment to reducing environmental impact.
Refineries are exploring renewable energy integration. The CFP includes an energy recovery unit (ERU) sold to Global Power Synergy (GPSC) for $757 million,generating power and steam using petroleum pitch. Thailand’s option Energy Development Plan promotes biofuel production, including ethanol blending in diesel fuels and advanced bio-oil production from plastic waste.
PTT Exploration and Production (PTTEP) is leading CCS efforts, aiming to capture 6-10 million tonnes of CO₂ annually by 2030 through the Eastern Thailand hub project. The Arthit gas field project targets 1 million tonnes annually from 2027, supporting the refining industry’s decarbonization efforts.
What’s next
Thailand’s refining upgrades position it as a potential energy hub in Southeast Asia, boosting competitiveness in the cleaner fuel market. Incentives from the Board of Investment (BOI) and green financing support renewable energy and clean technology adoption. Collaboration with international partners facilitates technology transfer and innovation in CCS and hydrogen.