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00:00GOOD TO HAVE YOU WITH US. WE TALK ABOUT HOW THERE'S THE GAS TURBINE CRUNCH. TALK TO US ABOUT HOW TIGHT AND IS IT ABOUT TO GET TIGHTER FROM HERE. YEAH. FIRST OF ALL, THANK YOU FOR HAVING ME HERE. GREAT TO BE HERE TALKING WITH YOU. THE SUPPLY. YOU ARE TALKING ABOUT GAS SUPPLY COMING WITH A I DEMAND. IT'S PRETTY TIGHT. WE ARE TRYING TO SUPPORT AS MANY CUSTOMERS AS WE CAN, ESPECIALLY IN THIS REGION. THAT'S THE REASON WHY I'M HERE TODAY IN BANGKOK. WE HAVE A LOT OF PROJECTS ONGOING. WE JUST STARTED A PROJECT IN VIETNAM. WE ARE ABOUT TO CLOSE A COUPLE PROJECTS IN SINGAPORE. THAILAND WILL FOLLOW VERY SOON. MALAYSIA IS ACTIVE. WE ARE SEEING A LOT OF ACTION IN THE REGION. I FULLY ASKED -- EXPECT TO SUPPORT THE CUSTOMERS. HASLINDA: THE SURGE IN DEMAND HAS TO DO WITH AI. ARE THERE OTHER FACTORS CONTRIBUTING TO THE EDGE ARE SEEING RIGHT NOW? THE AI DEMAND FIRST STARTED MAINLY FROM THE U.S. MARKET. NOW IT'S HAPPENING IN THE AC ON MARGIN -- MARKET ALSO. I DON'T THINK IT'S NECESSARILY ALL ABOUT AI. IT'S NATURAL GROWTH OF THE ECONOMY AND ALSO RETIREMENT OF THE OLD UNITS. THERE'S A LOT OF FACTORS THAT ARE MAKING THE UTILITIES AND INVESTORS TO MOVE TOWARDS GAS GENERATION. HASLINDA: YOU TALKED ABOUT WANTING TO RAMP UP PRODUCTION. JUST WONDERING WHETHER YOU ARE SEEING CHALLENGES IN DOING SO. COULD YOU SEE A SHORTAGE OF EQUIPMENT, GIVEN THE EXPANSION PLAN? OH YEAH. WE ARE WORKING HARD RIGHT NOW FOR THE EXPANSION PLAN. NOT NECESSARILY PURELY INVESTING. MORE LIKE PRODUCTIVITY AND AUTOMATION. WE ARE REVIEWING ALL OF OUR PROCESSES IN A VERY DETAILED MANNER, TRYING TO IMPROVE AS MUCH PRODUCTIVITY AS POSSIBLE TO HAVE BETTER OUTPUT ON PRODUCTION WITH EXISTING FACILITIES AS MUCH AS POSSIBLE. SO IT'S A WORK IN PROGRESS. WE WILL START TO SEE SOME RESULTS IN A COUPLE OF YEARS FROM NOW. HASLINDA: WHAT IS THE TIMELINE FOR A NEW GAS -- GASTURBINE? HOW LONG DOES A CLIENT HAVE TO WAIT TO GET ONE? THAT'S A GREAT QUESTION. IT DEPENDS ON THE PROJECT SITUATION. IF THE PROJECT IS READY TO GO AND THE CUSTOMER CAN MOVE WITH ALL THE FINANCING ALREADY, IT'S USUALLY STANDARD TO BE ABOUT TWO YEARS FOR THE ENGINES TO GET DELIVERED AND MAYBE THREE OR FOUR YEARS TO THE PLANT TO BE IN OPERATION. IT DEPENDS ON WHICH COUNTRY AND WHAT THE PROJECT SITUATION IS. THAT WOULD BE THE STANDARD ANSWER FOR ME. HASLINDA: LET'S PICK A COUNTRY. THAILAND HAS BEEN WANTING TO GENERATE POWER. WHAT DOES IT MEAN FOR THIS ECONOMY? WHAT'S THE TIMELINE? WHAT ARE THE RISKS THAT THAILAND MIGHT NOT BE ABLE TO PRODUCE THE ENERGY THAT IT WANTS? FOR THAILAND, WE JUST FINISHED OUR 10TH UNIT OF OUR JAC ADVANCED GAS TURBINE PLANT THIS JANUARY. 10 UNITS ACCUMULATED UP TO SEVEN GIVE -- GIGAWATTS OF POWER JUST WITH 10 UNITS OF THE MACHINE. THAILAND HAS ALWAYS BEEN PRETTY SUFFICIENT WITH GAS. IT'S DEPENDENT ON THE GAS GENERATION AND A LARGE MAJORITY IS FROM GAS. I THINK INVESTMENTS WILL START AGAIN FROM NEXT YEAR ONWARDS. WE CAN SUPPORT THE CUSTOMERS WHENEVER THEY ARE READY TO GO FORWARD. HASLINDA: SO IS THERE RISK THAT THAILAND MAY NOT BE ABLE TO BUILD HIS POWER PLANTS ON TIME AND AT THE COST THAT IT WANTS? WELL, THAT'S A DIFFICULT QUESTION. IT'S A MOVING FACTOR. I WOULD SAY THAT INFLATION, WE HAVE HAD OUR SUPPLIERS HAVE AN IMPACT ON THEIR PRICING BECAUSE OF INFLATION. SO COST IS RISING FOR SURE. POWER PLANTS ARE GETTING MORE DOLLAR PER K W THAN IT WAS BEFORE. BUT FOR ANY COUNTRY, IT'S NOT NECESSARILY THAILAND. IT'S IN THE AMERICAS, THE MIDDLE EAST. GENERALLY, THE RATES ARE GOING UP. HASLINDA: YOU TALK ABOUT HOW RATES ARE GOING UP AND YOU CAN ONLY IMAGINE THE COST OF GAS TURBINES ALSO INCREASING, GIVEN THE DEMAND. TALK TO US ABOUT THE INCREASE IN COST. YEAH. I WOULD SAY COMPARED TO FIVE YEARS AGO, MAYBE 50% INCREASE. MAYBE MORE. BUT IT'S IN LINE WITH OTHER EQUIPMENT AND THE WHOLE EQUIPMENT FACILITY. IT'S IN THE RANGE OF THAT KIND OF PERCENTAGE THAT COSTS ARE GOING UP. BUT WE ARE TRYING TO SUPPORT THE CUSTOMERS AS MUCH AS POSSIBLE. KEEP IN MIND, POWER PLANTS, THE HUGE FUEL. WE ALWAYS LOOK VERY CLOSELY INTO THE FUEL PRICE. MAINLY THE GAS PRICE. ASIA'S GAS PRICE HAS BEEN FLUCTUATING QUITE A LOT THE PAST 10 YEARS. DUE TO MULTIPLE REASONS. ALSO GAS PRICE. WE HAVE TO BE VERY CAREFUL. HASLINDA: IN TERMS OF DEMAND, CAN YOU QUANTIFY WHAT WE ARE EXPECTING IN THE NEXT 12 TO 24 MONTHS? IS IT GOING TO BE A SHORT TERM CRUNCH OR DO YOU SEE THAT GOING LONGER? YEAH. I WOULD SAY WE SEE VERY HIGH DEMAND FOR ANOTHER COUPLE OF YEARS. WE FORECAST AT LEAST THREE YEARS TO CONTINUE THIS KIND OF SITUATION. MAYBE GO UP TO FIVE. BUT IT'S NOT GOING TO SUDDENLY DROP SIGNIFICANTLY. GAS IS A VERY DEPENDABLE SOURCE OF ENERGY TODAY. COMBINED WITH RENEWABLE POWER, GAS IS VERY COMPLEMENTARY TO SUPPLY AFFORDABLE AND SUSTAINABLE ENERGY. I DON'T THINK IT'S GOING TO BE A SUDDEN FALL IN A COUPLE OF YEARS. PRETTY GOOD DEMAND WILL CONTINUE FOR ANOTHER FIVE TO 10 YEARS HASLINDA: WE KNOW THAT GOVERNMENTS ARE INCREASINGLY LOOKING AT THEIR ENERGY MIX TO TRY TO MEET THEIR ENERGY NEEDS. HYDROGEN INCREASINGLY BECOMING AN OPTION. WE KNOW THAT YOU ARE CONDUCTING PILOT PROGRAMS RIGHT NOW. TALK TO US ABOUT WHERE YOU ARE WITHIN AND HOW OPTIMISTIC YOU ARE ABOUT IT. SURE. IF WE TALK ABOUT HYDROGEN, THE CHALLENGE IS GOING TO BE THE SUPPLY CHAIN SIDE MORE THAN THE TECHNOLOGY SIDE. WE HAVE OUR OWN VALIDATION PLANT IN OUR FACILITY IN JAPAN. A LITTLE BIT WEST OF OSAKA WHERE WE HAVE OUR PLANT. THAT'S WHERE WE VALIDATE OUR HYDROGEN PRODUCTION STORAGE AND UTILIZATION WITH AN ACTUAL POWERPLANT THAT WE OWN AND OPERATE. WE'VE GONE UP TO 30% IN THAT FACILITY. 50% VALIDATION MIXING, THE AMOUNT OF VOLUME OF MIXING OF HYDROGEN. 50% IN THE UNITED STATES. WE ARE CONTINUOUSLY DEVELOPING THIS TECHNOLOGY. 30 TO 50%. WE ARE VERY CONFIDENT TODAY. IN THE FUTURE, WE WILL AIM UP TO 100% FOR HYDROGEN. HASLINDA: TO WHAT EXTENT DO YOU THINK THIS WILL HELP ASIA IN ITS TRANSITION NEEDS? I GUESS ENERGY NEEDS GOING FORWARD. YEAH. FOR ASIAN COUNTRIES, OBVIOUSLY WE CANNOT AND DON'T WANT TO STOP THE ECONOMY GROWTH. IT'S A BALANCE BETWEEN ECONOMY GROWTH AND ALSO DECARBONIZATION. THAT'S WHY WE ARE SEEING THIS DEMAND FOR GAS BECAUSE IT IS A VERY FUTURE CONVERTIBLE PRODUCT OR EQUIPMENT. EITHER YOU CAN DO CARBON CAPTURE ON THE BACKEND OR YOU CAN DO GREEN FUEL LIKE HYDROGEN AND AMMONIA ON THE FRONT END AS A FUEL. SO WE WILL BE SEEING GAS INVESTMENTS IN THIS REGION. AND THEN IN THE FUTURE WHEN THE SUPPLY CHAIN IS READY, HYDROGEN AND AMMONIA TO BE UTILIZED. OR YOU CAN ADD ON THE CARBON CAPTURE EQUIPMENT. HASLINDA: TALK TO US ABOUT PLANS , MANUFACTURING PLANS IN THE U.S.. SURE. FIRST OF ALL, WE HAD A MANUFACTURING PLANT IN THE U.S.. EQUIVALENT SIZE OF WHAT WE HAVE IN JAPAN. IT'S IN SAVANNAH, GEORGIA. SO WE HAVE DIVERSIFIED OUR PRODUCTION CAPABILITY BETWEEN JAPAN AND U.S.. ACTUALLY THIS WORKS VERY WELL. A LOT OF THE PROJECTS WE SUPPORT IN THE U.S., WE MANUFACTURED THE ENGINES IN GEORGIA, SAVANNAH. OTHER COUNTRIES WE WOULD SUPPORT FROM OUR JAPAN PLAN. SO WE ARE BALANCING THE TWO. HASLINDA: ARE YOU STRUGGLING TO FIND WORKERS FOR YOUR MANUFACTURING PLANT? THAT'S A CHALLENGE IN ANY COUNTRY TODAY. THERE'S A LACK OF WORKERS IN MANY AREAS. CURRENTLY, I THINK WE ARE DOING WELL. BOTH IN JAPAN AND THE U.S.. WE ARE KEEPING OUR PRODUCTION SLOTS. WE AREN'T SEEING ANY DELAYS ON PRODUCTION. WE ARE CONTINUOUSLY HIRING PEOPLE TO INCREASE OUR

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