Hydrogen: The Green Fuel of the Future

by Ir. Alex Looi Tink Huey and Ir. Kwok Yew Hoe

Hydrogen, particularly green hydrogen produced from renewable sources, represents a frontier in Malaysia’s energy transition. McKinsey forecasts that global demand for green hydrogen is expected to reach 125-585 million tonnes per year by 2050, with a global hydrogen economy valued at US$2.5 trillion [9].

Depending on production methods, hydrogen can be classified as green, blue or grey. Green hydrogen, considered top premium, is produced by splitting water using electrolysis powered by RE from solar and hydropower plants, emitting zero carbon emissions in the process [10]. Blue hydrogen, produced from natural gas with carbon capture and storage (CCS), can also be considered “clean” if it meets strict carbon capture standards. Grey hydrogen, produced through steam methane reforming, contributes to carbon emissions as it releases carbon dioxide and uses non-renewable sources for production.

Currently, hydrogen is used widely in the chemical industry as feedstock, in the steel industry as a reducing agent and for special applications in various industries. The government and private sectors are investing in pilot projects and research initiatives to explore the potential of hydrogen. PETRONAS has launched several green hydrogen projects aimed at decarbonising its operations and creating new revenue streams. These initiatives are aligned with the United Nation’s Sustainable Development Goals (SDGs) with the global push towards hydrogen as a versatile and clean energy carrier. The molecule is widely seen as a key element in the future energy system, contributing to a lower carbon future.

Sarawak Energy Berhad on the other hand, has developed ASEAN’s first hydrogen production and refuelling station. The plant, capable of producing 130kg of hydrogen per day with a purity of 99.999%, is able to support and fully refuel up to five fuel cell buses and 10 fuel cell cars per day.

The first hydrogen refuelling station in the peninsula is also in the works. Toyota Mirai is the world’s first hydrogen fuel cell vehicle (FCV) being mass produced currently. According to The Edge Malaysia, our potential as a regional hub for producing green hydrogen, not only for domestic use but also for export, is significant. Green hydrogen produced through electrolysis and using renewable power, costs US$10-US$15 per kg, depending on availability [11]. So, driving higher demands and strong policies are essential to lowering hydrogen costs and increasing adoption.

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References

[9] McKinsey & Company. Global energy perspective 2023:hydrogen outlook. https://www.mckinsey.com/industries/oiland-gas/our-insights/global-energy-perspective-2023-hydrogenoutlook. Accessed June 2024.

[10] The Edge Malaysia. Catalysing Malaysia’s green hydrogen regional hub aspirations. https://www.theedgemalaysia.com/ content/advertise/catalysing-malaysias-green-hydrogenregional-hub-aspirations. Accessed June 2024.

[11] The Edge Malaysia. Energy: can Malaysia be a hydrogen hub? https://theedgemalaysia.com/node/718769. Accessed July 2024.

[12] Malaysia Investment Development Authority (MIDA). Hydrogen as an attractive new energy source/ carrier. https://www.mida. gov.my/hydrogen-as-an-attractive-new-energy-source-carrier/. Accessed July 2024.