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Japan’s Hydrogen Drive Reshapes Southeast Asia

Anela DoksoBy Anela Dokso09/08/20233 Mins Read
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While global attention focuses on hydrogen investments in various regions, Japan is quietly spearheading hydrogen initiatives in Southeast Asia.

Spanning 11 nations, Southeast Asia encompasses over 680 million people, boasts a $4 trillion combined GDP, and accounts for 5% of global energy demand[^3^]. However, its hydrogen initiatives have remained under the radar. Amidst this, Japan emerges as a key player, not only investing in the region but also exporting its cutting-edge hydrogen technologies.

Southeast Asia contributes about 3% of the world’s hydrogen production, predominantly from natural gas[^3^]. Yet, unlike other regions with high-profile strategies, only Singapore has publicly shared its hydrogen roadmap. In this landscape, Japan takes the lead, initiating approximately half of the region’s announced projects since 2020 (Table 1). While many are in early stages, the focus remains on exploring efficient methods of long-distance hydrogen transportation, including ammonia, organic carriers, liquid hydrogen, and e-methane.

Japanese firms like Chiyoda are already testing methylcyclohexane (MCH) as a hydrogen carrier in partnership with Brunei, aiming to supply Japan’s refineries[^4^]. ENEOS, a Japanese petroleum company, collaborates with Malaysia’s Petronas for a groundbreaking renewable hydrogen-to-MCH project, with final investment decisions slated for 2023[^5^]. Japan has also joined hands with Indonesian and Malaysian partners to develop low-carbon ammonia and hydrogen production plants, fostering exports[^6^][^7^].

In tandem with domestic needs, Japan aims to export its hydrogen technology to Southeast Asia. Firms like JERA and IHI Corporation are pioneering co-firing ammonia in coal-fired power plants, a strategy they extend to Southeast Asian nations with coal-heavy energy portfolios. Japanese collaboration with EGAT in Thailand is focused on clean hydrogen and ammonia production, facilitating their domestic and international use[^16^]. Singapore stands as a testbed for direct ammonia combustion, hydrogen co-firing, and potential ammonia bunkering[^16^].

As Japanese companies endeavor to decarbonize existing coal-fired plants, several challenges emerge. The certification of low-carbon hydrogen and ammonia is essential to ensure meaningful emission reductions. Balancing the gradual shift away from coal and availability of clean fuels is crucial, as is addressing the potential surge in clean fuel demand[^17^][^18^]. Affordability is a key factor, with co-firing at 60% in Indonesia potentially tripling electricity costs[^18^].

Japan’s journey into Southeast Asia’s hydrogen landscape is more than investment—it’s a collaboration, a technological exchange, and a decarbonization endeavor. As Japan drives innovation, it hopes to create a sustainable energy ecosystem that transcends borders, benefiting both its partners in Southeast Asia and the global push for a cleaner future.

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