By Prof Dato’ Dr Ahmad Ibrahim
Hydrogen energy is being touted as a solution to mitigate climate change. Burning hydrogen for energy is a clean energy source. Water produces hydrogen and burning hydrogen produces water. Without energy and water, the world cannot survive. The world’s interest in hydrogen energy has increased dramatically due to its attractiveness. Sarawak is a state that uses hydrogen as an energy source. Sarawak has an abundance of green hydropower that can break down water to produce green hydrogen. However, the economics remain challenging. Fuel cell technology has long been researched to convert hydrogen into electricity. But a key obstacle is efficient water electrolysis technology.
The technology race in green hydrogen production is intensifying as countries and companies compete for market share. Green hydrogen, which is produced by breaking down water using renewable energy sources, is seen as a key solution to decarbonising hard-to-electrify industries such as heavy transport, steel production and chemical manufacturing. Key drivers behind this race include advances in electrolyser technology, reductions in the cost of renewable energy, and strategic policy support.
Electrolysers, the technology that breaks down water into hydrogen and oxygen, are key to the economics of green hydrogen production. Solid oxide, proton exchange membrane (PEM) and alkaline electrolysers are the main types in use today. Solid oxide electrolysers have the potential to be highly efficient but require high temperatures, while PEM electrolysers are more compact and more adaptable to fluctuating renewable energy sources.
Companies are working to reduce the capital and operating costs of electrolysers, which is critical to making green hydrogen competitive with traditional fossil hydrogen. Gigawatt-scale electrolyser projects are being developed globally with the aim of realising economies of scale and thereby significantly reducing production costs. Green hydrogen production has become more viable as renewable energy prices, particularly solar and wind, have fallen dramatically over the past decade. Renewable energy costs are now a major factor in the cost of green hydrogen production, and projects are being developed in regions with abundant solar or wind resources, such as Australia, the Middle East, and Chile.
Innovative installations combining different types of renewable energy sources, energy storage solutions and electrolysers are being explored to maximise efficiency and ensure continuous hydrogen production even when renewable energy sources are intermittent. The EU, as part of its European Green Deal, has taken the lead in investing significant funds and developing a policy framework to support green hydrogen energy. The EU is working to develop the hydrogen value chain with the goal of producing 10 million tonnes of green hydrogen domestically by 2030 and importing a further 10 million tonnes. Japan, China and the Republic of Korea are investing heavily in hydrogen infrastructure and technology. Japan, for example, was an early proponent of hydrogen technology and is working to produce hydrogen from renewable energy sources and build a hydrogen economy. China is rapidly scaling up its hydrogen energy programme and has set ambitious targets for domestic use and export potential.
The United States has announced significant funding for a national hydrogen energy centre. This has piqued the interest of energy giants and technology companies competing for a place in the US hydrogen energy market. Large companies such as Siemens and Toyota are investing in green hydrogen projects and developing technology partnerships. Siemens is developing large-scale electrolysers, while Toyota is pioneering fuel cell technology to use hydrogen in cars. Start-ups are also entering the fray, focusing on innovative technologies for hydrogen production, transport and storage.
Hydrogen transport is challenging due to its low energy density and the need for high pressure or low temperature conditions. Innovations in hydrogen pipelines, storage and fuel cells are critical to building a viable hydrogen economy. Currently, the cost of green hydrogen is still higher than ‘grey’ hydrogen produced from natural gas. In order to compete, the cost of producing green hydrogen must fall to about $1 to $2 per kilogram. This will depend on continued technological progress and sustained investment.
The race to dominate green hydrogen technology is both competitive and collaborative. Governments, research organisations and private companies are driving advances that have the potential to transform global industries and energy systems. As technological breakthroughs reduce costs and scale up production, green hydrogen is likely to play a significant role in achieving net-zero emissions targets. It is time for Malaysia to build a strong green hydrogen energy R&D alliance across the country.
-The author is an Associate Research Fellow at the Ungur Aziz Centre for Development Studies (UAC), University of Malaya.