*4.4. Need for Renewable Hydrogen Development Policies in ASEAN*

Until 2020, ASEAN did not have a hydrogen road map. APAEC, however, mentions alternative technologies and clean fuels such as hydrogen and energy storage. APAEC will help AMS increase the share of hydrogen in the energy mix. An ASEAN hydrogen road map is needed to guide national road maps. Based on the analysis of the drastic drop in the cost of VRE and electrolyzers, opportunities to introduce 'green' hydrogen produced using curtailed electricity will be plentiful. The hydrogen road map should include hydrogen development and penetration in transport, power generation, and industry. To guide investment, hydrogen penetration policies and targets must be set up. This study, however, can only suggest policies to develop, adopt, and use hydrogen. The study adopts Australia's hydrogen road map, especially its key polices [16,17], and tailors them to ASEAN's energy landscape. In developing the ASEAN's hydrogen roadmap, four key policies are highlighted below.

The first policy area is on financing which aims to provide access to lower-cost financing for hydrogen development and low-emission projects. In this regard, the government in ASEAN may need to consider providing fiscal policy incentives for local manufacturing for hydrogen development and financing incentives for low-emission electricity.

Another policy is on regulations which aims to set up targeted policies to stimulate hydrogen demand. In this regard, the government in ASEAN may need to consider developing hydrogen-specific regulations across AMS to support hydrogen development in power generation, transport, and industry. The regulation should allow grid-firming services from electrolyzers to be compensated, and allows for on-site hydrogen production and, where possible, position plants close to where the hydrogen will be used. Furthermore, the gas pipeline regulations should be reviewed to consider including gaseous hydrogen.

Thirdly, the policy is on research and development (R&D) which aims to establish demonstration projects for mature hydrogen technologies. The government in ASEAN should also consider setting up a hydrogen center of excellence as a research body to bring in all parties to work on technologies and policy coordination. The center should also conduct research and development in plant efficiency and safety, and in hydrogen shipment, pipeline, and storage.

The fourth policy target is on social acceptance which aims to develop a public engagement plan and strategy to support clean fuels such as hydrogen and ensures that communities understand all aspects of its use. The social acceptance is key for promoting willingness to pay for clean fuels.

To promote the future hydrogen society, ASEAN will have to develop a comprehensive hydrogen road map that includes a policy framework supporting hydrogen production, storage, and transport. The policy framework also needs to support hydrogen utilization in power generation, transport, heat production, industrial feedstock, and import and export. In developing the hydrogen road map, the governments in the countries of ASEAN should consult industrial, financial, and banking stakeholders. The road map will need to cultivate people's willingness to support a hydrogen society.
