On the Economics of Low-Carbon Hydrogen Production for Large-Scale Industrial Facilities in Southeast Asia

This study examines the economics of blue and green hydrogen as feedstock for large industrial facilities in Southeast Asia. To understand how industries can adopt low-emission and renewable hydrogen, the levelised costs of blue and green hydrogen are calculated. Four pathways are examined, including a large-scale carbon capture and sequestration facility located a distance away from an existing steam methane reforming hydrogen plant, a gigawatt-scale electrolysis facility adjacent to a large industrial site fed by an adjacent solar photovoltaic electricity source, as well as two pathways with either remote electrolyser and solar photovoltaic, necessitating hydrogen transport and storage, or a remote solar photovoltaic source with a dedicated power transmission line. The region’s transition to green hydrogen must overcome the challenges of high renewable electricity costs, the need for large land banks for solar photovoltaic farms and efficient long-distance hydrogen transport solutions or power transmission lines. Moreover, the region must improve its inconsistent track record in implementing billion-dollar public–private projects within budget and on time.