Southeast Asia is increasingly considering the establishment of low-carbon hydrogen hubs as part of its strategy to meet net-zero targets. Major economies such as the United States, Australia, and the European Union are making significant investments in hydrogen strategies, with the U.S. allocating US$8 billion, Australia over AUS$500 million, and the EU close to €200 million towards hydrogen initiatives. In 2022, global hydrogen demand reached 95 million tonnes, yet low-carbon hydrogen accounted for less than 1% of production in 2023. Within ASEAN, hydrogen demand is approximately 3.2 million tonnes in 2023, highlighting a growing interest in this energy source [2bd58c2].
Malaysia is planning to develop three hydrogen hubs by 2050, with the Sarawak H2 Hub expected to be operational by 2030. Meanwhile, Singapore aims to position itself as a 'hydrogen service hub', focusing on the development and distribution of hydrogen technologies. However, there are concerns regarding the feasibility of these ambitious targets, particularly in light of geopolitical challenges and the need for regional collaboration among ASEAN nations to implement effective hydrogen strategies [2bd58c2].
The ongoing global shift towards hydrogen as a cleaner energy source is echoed in various regions, including Colombia, which is emerging as a competitive player in the green hydrogen market. The Colombian hydrogen association has set ambitious targets for electrolysis capacity and production costs, aiming for a levelized cost of green hydrogen to fall to US$1.70/kg by 2030 [2f681cb6].
In the U.S., the Treasury Department's proposed guidelines on clean energy investment and production tax credits for green hydrogen projects have raised concerns. A study by Wood Mackenzie, commissioned by the American Clean Power Association, suggests that these guidelines could hinder the green hydrogen industry by making deployment too expensive, potentially leading to increased reliance on blue hydrogen instead [cad3863b].
India is also making strides in the green hydrogen sector, investing $2.1 billion to promote local electrolyser manufacturing and green hydrogen production. The government’s Strategic Interventions for Green Hydrogen Transition (SIGHT) program has attracted significant interest from large corporations, aiming to establish a robust domestic market for green hydrogen [ee381706].
As the competition for dominance in the global clean energy race intensifies, countries like China, the U.S., and Australia are positioning themselves to lead in the green hydrogen industry. China currently controls 50% of global electrolyser capacity, while Australia has allocated $8 billion to kickstart its green hydrogen sector [0aaf3429][46e908c8].
Despite the potential of hydrogen as a clean energy source, challenges remain. The current methods of hydrogen production, primarily from natural gas, produce carbon emissions, and the costs associated with electrolysis are high. Additionally, the infrastructure for handling and transporting hydrogen is underdeveloped, raising questions about its viability as a mainstream energy solution [5779911c].
In conclusion, while Southeast Asia is exploring the potential of low-carbon hydrogen hubs, the region must navigate various challenges and collaborate effectively to realize its ambitions in the hydrogen economy. The global landscape is rapidly evolving, with significant investments and strategies emerging worldwide, making it essential for ASEAN to keep pace with these developments [2bd58c2].