Study on Green Hydrogen Production in Brunei Darussalam

Department of Energy, Prime Minister's Office, Brunei Darussalam, Eria

No 2023-RPR-12 in Books from Economic Research Institute for ASEAN and East Asia (ERIA)

Abstract: While Brunei Darussalam has long been renowned for its oil and gas production and export, it is now embracing a shift towards carbon neutrality by 2050. To achieve this goal, Brunei must transition from oil and gas to clean fuels, such as hydrogen, for both production and export. Producing green hydrogen will require harnessing renewable energies, but Brunei's solar Photo Voltaic (PV) potential is limited due to its land area constraints. Floating solar PV (FSPV) is an option, but the water surface in Brunei is also limited. Therefore, the production of blue hydrogen from natural gas will remain a crucial alternative for Brunei. The estimated production cost of green hydrogen in Brunei ranges from US$3.5 to $5.2 per kg-H2, slightly higher than the global target of US$1 to $2 per kg-H2. Hence, reducing the production cost of green hydrogen will be vital, achieved through adopting lower-priced solar PV systems and improving the efficiency of electrolysis technology. The green hydrogen industry in Brunei will necessitate significant investment, but it will also yield numerous benefits, including the creation of skilled labour opportunities and economic growth through the country's macro economy. Embracing green hydrogen will play a pivotal role in Brunei's journey towards carbon neutrality, ensuring a sustainable and cleaner future for the nation.

Date: 2023
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