DECEMBER 20 — Hydrogen is touted as a solution for climate change mitigation. Burning hydrogen for energy is clean. From water hydrogen is produced, while the combustion of hydrogen produces water. The world cannot live without energy and water. Because of such attraction, world interest has witnessed a massive ramp up. Sarawak is one state which is energised by hydrogen. And Sarawak has abundant green hydropower to split water to generate green hydrogen. However, the economics remain challenging. Fuel cell technologies have been long researched for converting hydrogen into electricity. But a key obstacle is the efficient electrolyser technology split water.
The technology race in green hydrogen production has intensified as countries and companies strive for some share. Green hydrogen, produced by splitting water using renewable energy sources, is seen as a critical solution to decarbonizing industries that are difficult to electrify, such as heavy transportation, steel production, and chemicals manufacturing. The main driving forces behind this race include advancements in electrolyzer technology, decreasing renewable energy costs, and strategic policy support.
Electrolyzers, the technology used to split water into hydrogen and oxygen, are key to the economics of green hydrogen production. Solid oxide, proton exchange membrane (PEM), and alkaline electrolyzers are the main types in use. Solid oxide electrolyzers have the potential for high efficiency but require high temperatures, while PEM electrolyzers are more compact and adaptable to fluctuating renewable energy sources.
Companies are working to bring down the capital and operational costs of electrolyzers, which will be crucial for making green hydrogen competitive with traditional, fossil-based hydrogen. Gigawatt-scale electrolyzer projects are being developed globally, aiming to achieve economies of scale that could significantly lower production costs. As renewable energy prices, particularly for solar and wind, have plummeted over the past decade, green hydrogen production has become more viable. The cost of renewable energy is now the dominant factor in green hydrogen production costs, and projects are being developed in regions with abundant solar or wind resources example, Australia, Middle East, Chile.
Innovative setups that combine different types of renewables, energy storage solutions, and electrolyzers are being explored to maximize efficiency and ensure continuous hydrogen production, even when renewable sources are intermittent. The European Union has led the charge with substantial investments and policy frameworks to support green hydrogen as part of its European Green Deal. The EU is focusing on developing a hydrogen value chain, aiming to produce 10 million tons of green hydrogen domestically and import another 10 million tons by 2030. Japan, China, and South Korea are heavily investing in hydrogen infrastructure and technology. Japan, for example, was an early proponent of hydrogen technology and is working on producing hydrogen from renewable sources and establishing a hydrogen economy. China is rapidly scaling up hydrogen projects, with ambitious targets for both domestic use and export potential.
The US has announced substantial funding for hydrogen hubs across the country. This has drawn the interest of energy giants and technology companies, all racing to establish a footprint in the US hydrogen market. Major corporations, such as Siemens, and Toyota are investing in green hydrogen projects and developing technology partnerships. Siemens is working on large-scale electrolyzers, while Toyota is pioneering fuel cell technology to use hydrogen in vehicles. Startups are also entering the race, focusing on innovative technologies for hydrogen production, transport, and storage.
The transport of hydrogen poses challenges due to its low energy density and the need for high-pressure or cryogenic conditions. Innovations in hydrogen pipelines, storage, and fuel cells are crucial to build a viable hydrogen economy. Green hydrogen currently remains more expensive than “grey” hydrogen produced from natural gas. To compete, green hydrogen production costs must fall to approximately US$1 to US$2 per kilogram. This will depend on continuous technological advancements and sustained investment.
The race to dominate green hydrogen technology is both competitive and collaborative. Governments, research institutions, and private companies are pushing advancements that could transform industries and energy systems globally. As technological breakthroughs drive down costs and scale up production, green hydrogen is likely to play an essential role in achieving net-zero emissions targets. It is time for Malaysia to establish a robust R&D alliance on green hydrogen nation-wide.
* Professor Datuk Dr Ahmad Ibrahim is an associate fellow at the Ungku Aziz Centre for Development Studies (UAC), Universiti Malaya, and may be reached at [email protected]
** This is the personal opinion of the writer and does not necessarily represent the views of Malay Mail.
