Carbon Emission Reduction Potential of Hydrogen Production for Large-Scale Industrial Facilities in Southeast Asia

Alloysius Joko Purwanto, Ridwan Rusli, Hafis Pratama Rendra Graha, Sirichai Koonaphapdeelert, Reza Miftahul Ulum, Citra Endah Nur Setyawati, Nadiya Pranindita and Ryan Wiratama Bhaskara
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Alloysius Joko Purwanto: Economic Research Institute for ASEAN and East Asia (ERIA)
Hafis Pratama Rendra Graha: Bandung Institute of Technology
Sirichai Koonaphapdeelert: Chiang Mai University
Reza Miftahul Ulum: University of Indonesia
Citra Endah Nur Setyawati: Economic Research Institute for ASEAN and East Asia (ERIA)
Nadiya Pranindita: Economic Research Institute for ASEAN and East Asia (ERIA)
Ryan Wiratama Bhaskara: Economic Research Institute for ASEAN and East Asia (ERIA)

No DP-2024-35, Working Papers from Economic Research Institute for ASEAN and East Asia (ERIA)

Abstract: Making use of hydrogen demand and supply forecasts reported by ERIA (2024) for the oil refining, ammonia, methanol, and steel industries in the Association of Southeast Asian Nations, this paper studies the carbon emission reduction potential of blue and green hydrogen for these large-scale industries until 2050. Future hydrogen supply and demand under the International Energy Agency’s announced pledges scenario are examined for each of these four industrial sectors, the corresponding carbon emissions calculated, and their future carbon emission reduction potential estimated. The potential of ammonia fuels and methanol for e-fuels is also considered. Levelised cost of hydrogen estimates and various carbon price scenarios are studied to calculate the government subsidies required to help finance the transition from grey to green and blue hydrogen production in the four industrial sectors in Southeast Asia in the coming decades. The insights gained inform policy strategies for a future industrial hydrogen decarbonisation transition.

Keywords: hydrogen; industry; carbon dioxide; emission (search for similar items in EconPapers)
JEL-codes: L20 O14 O25 Q42 Q48 (search for similar items in EconPapers)
Date: 2025-02-19
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