*3.3. Hydrogen Energy*

Hydrogen is the most abundant chemical element available in the atmosphere and can be a viable source to electrify homes, transport and industry. Hydrogen is being pursued as a potential form of clean energy given its wide usage in areas such as ammonia production, petrochemical and oil refining industries and many others. Currently, around 95% of hydrogen is produced from coal and gas, also called "grey hydrogen", and a small portion is produced with carbon capture, sequestration and storage (CCS), called "blue hydrogen". Less than 5% of total hydrogen production is produced from renewables, also known as "green hydrogen" [7]. Green hydrogen obtained through the electrolysis of water could be a non-polluting alternative for energy. Green hydrogen could be adopted in sectors such as transport, power generation, construction buildings and energy storage as it can make a remarkable contribution to clean energy transitions. Hydrogen has the characteristics of being light, storable and energy-dense, and no direct emissions of greenhouse gases makes its an important part of a clean and secure energy future. A study has found out that the electricity demand would reach 3600 TWh, surpassing the total annual electricity generation of the whole European Union if all the current hydrogen production is to be transformed from green sources [39].

Hydrogen fuel has huge potential to combat climate change by facilitating the transition to low-carbon energy sources despite their existing low share in the global energy consumption. An increase in scope for renewable energy and continuous decrease in the costs demanded for innovative green technologies of which storage facilities developed through hydrogen is likely. Furthermore, research has shown that blending of hydrogen with natural gas could provide a smooth transition from the current hydrocarbon-based economy to a hydrogen carbon economy [40]. In a long-term transition toward a clean and sustainable energy future, hydrogen provides a flexible option and a more distributed energy system that ensures a clean and sustainable hydrogen future [41]. The system brought about by a hydrogen economy could provide an easy transition towards a renewable-based future for many countries in ASEAN, which demands infrastructure and high energy demands.

The cost of hydrogen will also decline by over 50% by 2040 if adopted across all sectors, making it as competitive as the price of gasoline [42].The current cost of supplying renewable is about five times higher than gas, but the cost will come down with an investment in hydrogen supply chains. Green hydrogen will serve as a catalyst to address the integration challenges hindered for wind and solar as the world is shifting towards a green economy. By 2023, many hydrogen projects in Organisation for Economic Cooperation and Development (OECD) countries are expected to be launched which includes major pipelines for distribution to end-users and electrolyzers [43]. Island countries, especially in the ASEAN region, will benefit substantially as hydrogen will accelerate the storage as a clean energy carrier [7].

However, the ASEAN region has not yet included hydrogen in its policy agenda in many countries as an alternative fuel. Nevertheless, policy measures are likely to be addressed on emerging and alternative technologies, as hydrogen and energy storage by ASEAN Plan of Action for Energy Cooperation (APAEC) Phase 2 is under preparation for endorsement at ASEAN Ministers on Energy Meeting. The OECD's action plan to increase the share of hydrogen in the energy mix could indeed be fulfilled with the support from APAEC. The energy leaders in ASEAN could also develop a clear strategy on ways to promote hydrogen use in transportation and power sectors not limited to refining, fertilizer and petrochemical industries. Countries such as Singapore, Malaysia, Thailand, Indonesia and the Philippines could learn lessons from OECD countries, China and European community to guide the investment in research and development for hydrogen produced from both renewables and non-renewables.

Southeast Asian countries can learn from neighboring economies such as China, which has already accelerated hydrogen investment support to local industries whereby about US\$2 billion is being injected. Similarly, Japan has been promoting the global adoption of hydrogen for vehicles, power plants and other usages. Brunei in the ASEAN region has also taken a lead in the supply chain of hydrogen as it has supplied the liquefied hydrogen to Japan since 2019. However, more energy is consumed by the liquefied hydrogen as it needs a temperature of minus 253 degrees Celsius in order to transform the cooled gas into a liquid form [7].

Japan has been pioneering the renewable hydrogen economy in which the production of hydrogen through the reformatting process of renewable electricity such as solar and nuclear is likely to bring a breakthrough in decarbonizing emissions. Japan also became the first country in East Asia to adopt a basic hydrogen strategy, which will ensure that the production will reach cost parity with gasoline fuel and power generation in the long term. The society's willingness to pay is also a major factor despite the efforts by governments and private sectors to adopt hydrogen practices. South Korea is another country that has set a target for hydrogen usage with 10% of total energy consumption by 2030 and 30% by 2040 in order to power selected cities and towns [7]. The South Korean government has also made an announcement to create three hydrogen cities by 2022 where hydrogen will be used for major urban functions such as cooling, electricity, heating and transportation.

New research efforts are also underway with regards to investigating new methods for chemical-based liquid hydrogen carriers. A study [44] in 2013 introduced a methodology to quantitatively analyze the energy system by looking into the relationship of green car technology and greenhouse gas reduction in the regions of South Korea. The research suggested that technology such as decarbonization should be enhanced through the production of hydrogen to replace the existing fossil fuel sources in the foreseeable future. A recent study [7] also supports the promising future role of renewable hydrogen in energy transition to decarbonize ASEAN's emissions based on the examination of the potential scalability of renewable hydrogen production from curtailed electricity.
