ASEAN Energy

Booklet Volume 1
Low Carbon
Hydrogen in ASEAN
H2 HYDROGEN
 What are the types of Hydrogen?
While there is no international definition on hydrogen classification, usually hydrogen is classified by colors
GREY BLUE GREEN

Hydrogen produced Hydrogen produced Hydrogen produced

from methane or coal from methane or from renewable energy
combustion through coal com bu s t io n through electrolysis.
steam reforming or a using carbon capture
gasification process technology.

Share of Global Hydrogen As of 2023, hydrogen demand in the ASEAN Member
Demand in Industry in 2020 States (AMS) is currently around 3.2 million tons/year,
mostly from the petrochemical industry and is
supplied through domestic production.
Hydrogen is utilised mainly in industrial applications,
0,03% as a catalyst in ammonia production, oil refining and
24 10,18 %
%
How can low-carbon
hydrogen technology play
a role in reducing carbon?
Hydrogen serves mainly as an industrial
feedstock in ammonia and methanol
production, and in refineries, and

,8 methanol production (IEA, 2022). Hydrogen is also

3%
,97

used as a co-firing material in electricity industrial heat generation.

64

generation and as a fuel in the transportation sector.

Considering the versatility of
Direct reduced iron Grey hydrogen production is used extensively in the hydrogen and its multiple sources,
region’s industrial sector. The main issue is how to mass-production of lower-carbon
Methanol
make it economically viable in order to assist the hydrogen could help meet the region’s
Other industrial uses energy demand, especially in
transition of grey hydrogen demand to low-carbon
Ammonia hydrogen (blue or green). hard-to-abate sectors, and indirectly
decrease carbon emissions.

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What is the possible role of hydrogen in
ASEAN’s energy landscape in the future?

H2
H2
H2

ASEAN energy demand will

Hydrogen is one of ASEAN has significant potential
rise significantly, by about
the long-term low-carbon to produce low-carbon H₂
215% (413 Mtoe in 2020 to
technology solutions that with its abundant renewable
1,306 Mtoe in 2050). In order
ASEAN can consider, energy and natural gas
to comply with its
especially in the industrial reserves, particularly if it is
decarbonisation agenda, the
sector, long-haul transport combined with carbon
region must look for cleaner
and to some extent the capture and storage (CCS)
technology options to
power sector. technologies.
supply this rising demand.

According to the 7th ASEAN Energy Outlook, the region’s fossil fuel consumption accounted
for around 92% (122 Mtoe) of the TFEC in the transportation sector in 2020
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Why does ASEAN need to consider
low-carbon H₂ Technology?

1 H₂ is a potential long-term Projection of global H2 trade in 2030

decarbonisation solution
to achieve regional and and 2050
national climate targets.

ASEAN has considerable

2 potential to produce
low-carbon H₂ production
from its vast renewable
sources and considerable
natural gas resources. 2030

ASEAN faces tremendous

3 growth, especially industrial
demand growth, and is
located near global H₂
demand centers (Japan,
China, Korea)
2050
Source: Deloitte’s 2023 global green hydrogen outlook

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When should ASEAN consider low-carbon H2?

In evaluating hydrogen
technology in the Hydrogen can be used in many sectors. However,
region, ASEAN considering efficiency and cost, which sectors
needs to... might be considered “low-hanging fruit”?
Examples of H2 utilisation in Malaysia

Prioritise its efforts towards

massive electrification in the
energy sector and significantly
increase RE penetration.

Further map and identify

sectors in which a transition to
hydrogen utilisation would be Source: Malaysia’s National Energy Transition Roadmap (2023)
seamless.

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ASEAN Member States’ H₂ Targets and Plans
PHILIPINES VIETNAM SINGAPORE MALAYSIA

Planning to utilise and Produces around 500,000 Released its Study of Recently released its National
produce green hydrogen tons of grey hydrogen Hydrogen Imports and Energy Transition Roadmap
through Batangas 1,100 MW annually. Downstream Application for which states the planned use
combined-cycle power plants, Singapore which specified of green hydrogen and
targeted to operate by 2027. Planning to produce around the challenges, benefits and ammonia co-firing to
24,000 tons of green potential risks of utilising decarbonise TNB Genco’s
hydrogen by 2024. hydrogen technologies. generation plants.
CAMBODIA
Planning to produce green Produces grey hydrogen
Cambodia had inked an MoU THAILAND hydrogen through a 9 MW
to explore green hydrogen electrolyser by 2024 Planning for a national total of
production through PESTECH Produces green hydrogen 220,000 tons/year green
& HDF collaboration, study to through 1 MW electrolyser in hydrogen production by 2027.
be commenced in 2024 Nakhon Ratchasima.
BRUNEI DARUSSALAM
MYANMAR
LAOS
THAILAND
Produces and exports around INDONESIA
CAMBODJA VIETNAM
210 tons/year of grey
hydrogen from the existing Produces grey hydrogen and
PHILIPINES
gas reserves in a pilot project about 51 tons/year of green
with Japan under Japan's hydrogen.
AHEAD hydrogen supply
chain. Planning to produce blue
BRUNEI hydrogen using carbon
DARUSSALAM
capture technology and more
green hydrogen (around 200
MALAYSIA kilotons per year by 2027-2030
SINGAPORE
through PV and geothermal
plant)
INDONESIA

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What are the opportunities for developing
low-carbon H2 in ASEAN?

Steadily Increasing
Vast RE Resources Regional Hydrogen ASEAN Energy
Industrial Energy
Trading Cooperation
Demand

The existing and future Most AMS have ample Some AMS have The AMS should
industrial demand for H₂ RE resources, making indicated the role of H₂ implement hydrogen
should be transitioned to them well-poised to in their long-term technology permit and
low-carbon hydrogen. become large producers energy plans. H₂ can licensing schemes in
under a technological. of low-carbon hydrogen. potentially be traded order to establish and
regionally and globally in implement pilot projects.
the far future.

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What are the enablers and drivers necessary for encouraging
low-carbon H2 development in the region?

Creating H2 Fostering the Growth Opportunities of using

Supply Chain of H2 Demand low carbon hydrogen
in producing Green
Steel
Reducing cost of RE Green steel means the manufacturing
sources by the creation Pull policies such as
carbon pricing of steel using green hydrogen,
of H₂ supply chains without the use of fossil fuels.

The ten ASEAN countries are

together the world’s 6th largest
Establishment of specific exporter of steel products.
Green hydrogen sectoral RE targets in However, most of the countries are
certification the industry and subject to export restrictions due
transport sectors to their carbon emissions.

Gr een steel pr odu cti on i s a

sustainable option to produce
Conducive investing Incentives framework steel products, while also lowering
framework for H2 pilot for H₂ utilisation in carbon emissions.
projects demand sector

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What are the challenges of Transitioning to H2?

H2

Reducing the high Reducing the risks Establishing an Reducing the costs
cost of carbon and costs of storage economic ecosystem of key equipment in
hydrogen production and transportation for hydrogen energy hydrogen energy
It is necessary to replace The unstable and chemically There must be a common The high cost of hydrogen
gray hydrogen (low-cost active nature of hydrogen interest between countries refuelling stations poses a
hydrogen) with a more presents a challenge for and organisations for them challenge in the development
low-carbon option (green hydrogen containment and to cooperate in a robust of hydrogen energy.
hydrogen). distribution. economic ecosystem of
hydrogen energy.

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What does ASEAN need to do next?

2 3

Increase the regional

Develop a clear
capacity of hydrogen
hydrogen technology technology and
utilisation strategy supply chains
1 4

Identify priority H2 H2 Initiate

sector(s) for hydrogen H2 H2 hydrogen
technology pilot projects and
demonstrations

H2

Cooperation must be fostered among the

AMS to reduce RE production costs
through policies and regulations

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ACE’s efforts towards supporting Low-carbon
technology in ASEAN

Policy Brief by ACE

ASEAN Low-carbon Energy
Technologies Roadmap (ALERT)
Upcoming study by ACE and ERIA on the ASEAN Hydrogen Strategy
Outline of the Study

Overview of Perspective of
global H₂/NH₃ each AMS in
technology H₂/NH₃
development,
status and
trends

Scan Demand and

supply status of
Analysis of the
role of H₂/NH₃ in
here H₂/NH₃ in decarbonising
for various sectors
in each AMS
ASEAN’s energy
sector
more!

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References
Data Sources
ADB Institute, “Hydrogen in Decarbonization Strategies in Asia and
the Pacific” (2023).
ASEAN Centre for Energy, “How Southeast Asia Should Embrace
Hydrogen: Energy Security and Climate Change Perspectives” (2023).
ASEAN Centre for Energy, “The 7th ASEAN Energy Outlook” (2022).
Deloitte, “2023 Green Hydrogen Outlook” (2023).
IEA, “An Energy Sector Roadmap to Net Zero Emissions in Indonesia”
(2022).
IRENA, “Global Hydrogen Trade to Meet the 1.5°C Climate Goal” (2022).
KBR & Argus Media, “Study of Hydrogen Imports and Downstream
Applications for Singapore” (2020).
Malaysia’s Ministry of Economy, “National Energy Transition
Roadmap” (2023).
GMK Center, “ASEAN Steel Industry is Moving Towards
Decarbonization” (2023).
Acknowledgements
This publication has benefitted from the overall guidance of ACE’s
Executive Director, Dr. Nuki Agya Utama, and ACE Manager, Beni
Suryadi.
This publication was led by Nadhilah Shani and prepared by Marcel
Nicky Arianto from the Power, Fossil Fuel, Alternative Energy and
Storage (PFS) Department.
ACE colleagues, Suwanto, Aldilla Noor Rakhiemah, Prihastya
Wiratama, Akbar Dwi Wahyono, Adhityo Gilang Bhaskoro, Chaedar
Indra Pramana, Rio Jon Piter Silitonga, Rizky Aditya Putra, Rinda
Rufaidah provided helpful reviews and feedback.
Publication were supported by Rinda Rufaidah and ACE
Communications Team.
Design were supported by Rumaysha Aliffi Shanika of ACCEPT II
team.

ASEAN Member States’ H₂ Targets and Plans Data Source

Brunei: ERIA, “Brunei Darussalam Shifting to Hydrogen Society”
(2020); AHEAD launches Brunei-Japan hydrogen supply chain for
power generation in Tokyo Bay (2020).
Indonesia: PLN Press Release No.561.PR/STH.00.01/X/2023.
Malaysia: Paultan.org (H2biscus project for hydrogen production).
Philippines: Offshore-energy.biz (Green hydrogen utilization through
1,100 MW power plant). Contact : pfs@aseanenergy.org
Singapore: Linde.com (Green hydrogen supply from Linde to Evonik
in Singapore). Version : November 2023
Thailand: globalnewswire.com (SEA’s first hydrogen-based energy
storage).
Vietnam: theinvestor.vn (Vietnam gray and green hydrogen
production).

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