What future fuels might be used in Asia?
There has been a strong focus in recent years – globally and also in Asia – on exploring the development of low-carbon fuels that might serve a range of future purposes. Hydrogen has been the most high-profile, with numerous countries in Asia launching national strategy strategies around its use. Ammonia, a derivative of hydrogen, is also being investigated because of its potential to contribute to decarbonisation and ability to support transport of hydrogen.
Why are people excited about hydrogen and ammonia?
Hydrogen and ammonia certainly aren’t new. Hydrogen was first produced centuries ago and had an estimated global production market value of more than $150 million in 2023. Ammonia, as a key ingredient in many fertilisers, has an even bigger current market and is produced and shipped around the world.
The recent surge in interest in hydrogen and ammonia centres on their very low emissions profiles when burned as fuels. Combustion of hydrogen and ammonia does not emit CO2. Given global decarbonisation aspirations, there is optimism that hydrogen and ammonia can be used to reduce emissions from power generation, industrial processes and transportation. They are of particular interest to nations in Asia, given rapidly rising energy demand over the next few decades.
Are there particular challenges with hydrogen?
From a physical perspective, hydrogen is significantly more flammable than other fuels and as the lightest and smallest of all elements, it’s more difficult to contain than other gases from a storage perspective. Because of this, it’s likely any plans for long-distance transport of hydrogen will require it to be stored in ammonia.
However, the biggest current barrier to the widespread use of hydrogen as a fuel is that the method of producing it that has the least emissions – electrolysis of water via renewable energy, known as ‘green’ hydrogen production – is highly energy intensive, extremely expensive and yet to be performed at true industrial scale.
Are there other low-carbon ways to produce hydrogen?
Using natural gas to produce hydrogen (and ammonia), via a technique known as steam methane reforming, remains the most widespread current production method. By combining this with carbon capture and storage technology, hydrogen produced can be considered carbon-neutral – commonly referred to as ‘blue’ hydrogen production. This form of production is also still being worked up to scale but it promises to be the most cost-effective method in the short term to supply the volumes of hydrogen that will be required to contribute to progress towards net zero.
Electrolysis of water to produce hydrogen can also be powered by nuclear energy – so-called ‘pink’ production – although the feasibility of this relies on pre-existing nuclear generation capabilities.
What could hydrogen and ammonia be use for?
Power generation is seen as one of the major future uses for both hydrogen and ammonia. Hydrogen could be used as a supplement to and, possibly one day a replacement for, gas-fired generation, while ammonia could perform a similar role for coal-fired power and also be used as a substitute for gas. Some new gas power plants in Asia are being constructed to be hydrogen-ready, while ANGEA member company JERA is already trialling ammonia substitution – a fuel mix of ammonia and coal – at its Hekinan Power Station in Japan.
Hydrogen and ammonia have shown promise as fuels that can replace coal in steelmaking, which would help to reduce emissions from an otherwise hard-to-abate industry. Hydrogen also has the potential to be ‘blended’ into natural gas pipelines to reduce carbon intensity.
Which countries have made the most progress with their hydrogen industries?
A range of nations in Asia have published hydrogen strategies or roadmaps, including Japan, South Korea, Singapore, China, India and, more recently, Indonesia and Malaysia.
Japan is perhaps the nations most advanced in its planning, having become the first country globally to adopt a national hydrogen framework in 2017. Japan announced in mid-2023 that it planned to invest $107 billion in hydrogen supply over the next 15 years, with targets of 12 million tonnes a year by 2040 and 20 million tonnes by 2050. Japan’s JERA has already co-fired ammonia with coal in a successful world-first trial and there are also plans by other operators to test hydrogen in partnership with natural gas in commercial power plants.
Where will Asia source its hydrogen from?
In the long run, if ‘green hydrogen’ (and ammonia) proves economically viable, then Asia’s supply could come from anywhere. Theoretically, any nation with sufficient access to water and renewable energy will be able to produce hydrogen using them.
In the more immediate term, Asia’s hydrogen and ammonia is likely to come from its existing major suppliers of LNG – Australia, the US and the Middle East.
What is ANGEA’s role in the hydrogen economy?
ANGEA’s membership comprises some of the most significant gas and energy companies in the global supply chain. Through the provision of raw materials, application of technical expertise, research and development, and construction of production facilities, these companies will have a major role to play in ensuring Asia has access to affordable hydrogen (and ammonia) with the lowest possible emissions footprint.
ANGEA and its members are working together to support the development of CCS capabilities across Asia and beyond. This will be essential to Asian customers being able to access low-carbon hydrogen and ammonia produced from natural gas.
