Malaysia's Hydrogen Production Goals and Strategies for 2030 and 2050
Key Ideas
- Malaysia aims to increase hydrogen production to 2 Mt/year by 2030 and 16 Mt/year by 2050.
- Focus on displacing grey hydrogen with blue hydrogen until 2030 due to the high cost of green hydrogen.
- Efforts from 2030 to 2040 will be directed towards making green hydrogen more cost-competitive through technology improvements.
- Blue hydrogen is essential for industries with challenging emissions reduction needs like metal, steel, and oil refining.
Malaysia's Ministry of Science, Technology, and Innovation has set ambitious targets for the country's hydrogen production, aiming to increase it to 2 Mt/year by 2030 and a significant 16 Mt/year by 2050. The primary strategy until 2030 is to transition from grey hydrogen to blue hydrogen due to the current high costs associated with green hydrogen production. Blue hydrogen, produced through natural gas reforming with carbon capture and storage (CCS), is seen as critical for industries such as metal, steel, oil refining, and ammonia production, which face challenges in reducing emissions. From 2030 to 2040, the focus will shift towards enhancing the cost-competitiveness of green hydrogen through technological advancements and increased efficiency. Grey hydrogen, generated from gas without CCS, and green hydrogen from renewables, will also play roles in Malaysia's hydrogen production landscape. With these strategies in place, Malaysia is positioning itself to play a significant role in the global energy transition towards more sustainable and environmentally friendly practices.