Siemens Energy: Supporting "decarbonisation throughout technology"

Steve Loo

An estimated one-sixth of the world's electricity is generated using Siemens Energy's technologies, highlighting the company's role as a leading force in the global energy transition. With a comprehensive portfolio that spans the entire energy value chain, including both conventional and renewable energy technologies, the company's commitment to reducing carbon emissions is clear and unwavering.

In this edition of UPDATE Magazine, we feature an exclusive interview with Steve Loo, Managing Director of Siemens Energy Limited Thailand (Cambodia, Laos & Myanmar), President & Chairman of Siemens Energy Inc. Philippines and Head of Grid Technologies Sales for Asia Pacific. Steve shares insights into how Siemens Energy is helping its customers and partners transition to a more sustainable world through innovative technologies and the ability to transform ideas into reality.

Siemens Energy states that “We support companies and countries to reduce emissions across the energy landscape for a more reliable, affordable and sustainable energy system”. How has Siemens Energy been supporting Thailand and local companies in this case?

When we talk about decarbonisation in Thailand and its local companies, it's clear that while decarbonising Thailand and Southeast Asia is essential, it also presents significant challenges. And we are committed to supporting local companies with their energy needs, from upgrading energy grids to enhancing the efficiency of power plants.

For example, Siemens Energy has partnered with major local entities to explore and develop hydrogen energy power generation. These collaborations are part of broader strategies to reduce greenhouse gas emissions and utilise clean energy. We have signed Memoranda of Understanding (MoUs) to jointly explore the integration of hydrogen into power generation.

Moreover, our green business in Thailand has a substantial footprint, with approximately 43% market share. We have a 658-megawatt installed base in the country and over 40 expert engineers on site. While discussions on decarbonisation often focus on changing the source of generation to hydrogen, wind, or solar, it is equally important to address the challenge of efficiently transmitting the generated power from point A to point B.

What are the key areas of renewable energy in which a global leader in energy technology like Siemens Energy has been focusing on?

Our focus on renewable energy depends on resource availability and government investment in specific technologies. In Thailand, an emerging market highly vulnerable to climate change, the country aims to reduce greenhouse gas emissions by 30-40% from projected business-as-usual levels by 2030 and achieve carbon neutrality by 2050, with net-zero emissions by 2065.

A key aspect of this energy transition is the importance of a robust and resilient grid infrastructure. For instance, solar energy generation stops after sunset, causing blackout periods. Trading solar energy with neighboring countries could help maintain a consistent supply but would complicate the grid infrastructure. Therefore, investing in grid resiliency is crucial to managing these complexities effectively.

What are your key products, services or solutions for “decarbonisation throughout technology”?

Tackling climate change requires a tailored approach for each region, and Siemens Energy addresses this with a holistic portfolio of products, solutions, and services that cover almost the entire energy value chain— from low- or zero-emission power generation, transmission, and storage to reducing greenhouse gas (GHG) emissions.

Each country has its own energy goals and needs. For example, in Denmark, Siemens

Energy has signed a €1.4 billion agreement with Net energy to upgrade the national electricity grid. Over the next eight years, we will build more than 50 high-voltage substations, primarily in western Denmark. This will enhance grid capacity to support Denmark's goal of achieving net-zero emissions by 2045, thus increasing their renewable energy production and electrification needs.

In Japan, the focus is on decarbonisation and hydrogen energy. Japan aims to cut its emissions by 50% and is investing heavily in hydrogen. Siemens Energy’s gigawatt electrolyser factory in Berlin will play a crucial role, supporting more than three gigawatts per year of electrolysis capacity, which shows our capabilities to support Japan and other Asian countries in their hydrogen generation efforts.

This approach ensures that Siemens Energy can meet the unique demands of each region while driving the global energy transition forward.

Can you share with us more collaborations aimed at innovating sustainable energy solutions for the future?

The energy transition requires strategic partnerships and cross-collaboration between governments, the private sector, academia, and industry. Achieving net-zero emissions is impossible without collective effort.

Siemens Energy has a long-standing partnership with major Independent Power Producers (IPPs) in Thailand and other energy players across the region. For instance, in Singapore, we are collaborating on the Low-Carbon Energy Research (LCER) project for Ammonia Utilisation. In Indonesia, we are working with the state-run electric company PT PLN (Persero) to expedite the country's energy transition.

As Head of Grid Technologies Sales Asia Pacific, my team and I are focused on enhancing grid infrastructure and interconnectivity for our customers. While generating low-carbon energy is crucial, upgrading grid systems to improve stability and resilience is equally important. This enables a greater integration of renewable energy sources. Additionally, we are working to connect offshore islands to the national grid, unlocking new clean energy potentials in the region.

These collaborations highlight Siemens Energy’s commitment to supporting the energy transition through innovative and sustainable solutions.

Are there any collaborations in Asia that you can share with us?

Beyond Thailand, four years ago, we played a key role in constructing a 450-megawatt solar farm in central Vietnam. Today, this farm distributes solar-generated power to both the north and south of the country. For this project, we supplied Grid Technologies products like circuit breakers and transformers for the substation, contributing to the solar power infrastructure in Asia.

Recently, we completed the installation of an advanced turbine enhancement program. This project includes the first plant in Singapore to surpass 60% energy efficiency. These upgrades reduce carbon emissions by more than 60,000 tons annually, which is equivalent to removing approximately 9,300 cars from the road each year.

What are Siemens Energy's activities and how do you contribute to the zeroemission society. Are there any plans for future projects in Thailand?

We have supported local initiatives in Thailand by supplying and equipping gas turbines for power plants, specifically for cogeneration plants. Currently, we are upgrading these plants by enhancing their combined generation capacity, boosting efficiency by roughly 55%, and improving availability and overall performance. As for the future, we plan to support Thailand throughout its energy transition journey.

How is Thailand's energy transition towards sustainability progressing? Is the country on track? What are the main challenges that the country is facing with this transition?

Thailand's energy transition towards sustainability is progressing, with challenges and varying timelines compared to global benchmarks. At the global level, Southeast Asia, including Thailand, lags behind European and US markets in terms of commitments to net zero and decarbonisation goals. While European countries are targeting net zero by 2030 or 2035, and Korea aims for decarbonisation by 2050, Thailand's target currently stands at achieving net zero emissions by 2050 or possibly 2065.

Some governments adopt a "wait and see" approach before implementing significant investments and policy changes. This cautious approach impacts a country's pace in comparison to global trends.

Here's what we need to do across the Asia Pacific region, including Thailand, renewable energy capacity needs to increase by several magnitudes compared to 2020 levels. This requires a supportive regulatory framework, reduced barriers, attractive Feed-In-Tariff, adequate supply chains, and access to materials.

Transitioning from conventional power sources involves utilising existing infrastructure as a bridge toward cleaner alternatives like gas, LNG, or hydrogen. This approach allows for gradual emission reductions while ensuring a stable power supply during the transition. Future efforts will emphasise strengthening the power grid, necessitating more complex, robust, and resilient infrastructure to support expanded renewable energy integration.

Looking ahead, industrial decarbonisation will be pivotal beyond utility sectors. Addressing rising energy demands dueto economic growth, enhancing energy efficiency, and electrifying industrial processes and transport will all play crucial roles in Thailand's sustainable energy future.

With your long-term experience in Malaysia and your current responsibility for Siemens Energy covering the Philippines, Thailand, and CLM, could you share with us how these countries, are capable in renewable energy development and production?

Thailand shows great promise in solar energy due to its abundant sunlight. Despite geographic challenges affecting wind energy, biomass waste-to-energy and hydropower also hold significant potential. The Thai government plays a crucial role in promoting renewable investments through tariffs, technology incentives, and subsidies.

The Philippines has set ambitious targets, aiming for 35% renewables in overall generation by 2030 and 50% by 2040. The country leverages its abundant natural gas resources alongside emerging sectors like hydro, wind, biogas, and solar energy.

Cambodia, with a modest generation capacity of 2 to 3 gigawatts, is gradually increasing its power infrastructure, focusing on solar farm developments due to its low population density.

Laos stands out for its extensive hydropower potential, contributing around 70% of its total energy generation, supported by favorable geographical conditions and resources.

Myanmar has expanded significantly in power generation, primarily relying on natural gas and hydropower. However, challenges remain in achieving widespread electrification and ensuring consistent power supply.

What is Thailand's potential for investments in hydrogen energy projects, and how does it compare to the neighboring countries?

It's challenging to make direct comparisons because countries vary greatly in their policies, aims, and stages of development. What's important when trying to accelerate hydrogen ambitions is having robust partnerships.

We are committed to supporting every country in the hydrogen journey. For instance, in Malaysia we collaborate with Tenaga Nasional Berhad (TNB) and multiple partners across the region to advance green hydrogen technologies.

How does Siemens Energy manage to adopt sustainability in the company?

Sustainability is central to our company's strategy, driving our growth, enhancing prosperity, and making us more resilient. Our Sustainability Program is aligned with our purpose of 'We energise society' and supports the United Nations' Sustainable Development Goals.

Our focus includes decarbonisation, diversity and inclusion, environmental stewardship, health, and safety. We're proud of our sustainability achievements and continuously strive to improve. For example, we met our goal of using 100% renewable electricity by 2023 and are on track with our decarbonisation targets. Also, we've increased the number of women in senior leadership roles from 22% in 2022 to 28%.

These efforts reflect our commitment to sustainability and our goal of creating positive impacts both within our company and in the wider community.

Contact details:

Vasinee Sukumwattanakij

Communication Asia-Pacific

Siemens Energy Limited

+66 2 079 1191

vasinee.sukumwattanakij@siemens-energy.com

siemens-energy.com