Unlocking ASEAN's Hydrogen Potential Through Ammonia Production
Key Ideas
- ASEAN is focusing on ammonia production for fertilisers as a strategic opportunity for a low-carbon hydrogen economy.
- Financial institutions are likely to support renewable energy-powered electrolysers and CCS facilities for green and blue hydrogen production at ammonia plants.
- Integrating low-carbon hydrogen into ammonia production can accelerate the development of supporting industries and make hydrogen more competitive across various sectors.
- Strategic policy directions include prioritising export markets, developing green hydrogen in resource-rich areas, and strengthening cross-industry and regional coordination.
As nations worldwide pursue decarbonisation, ASEAN is strategizing its hydrogen initiatives, with a focus on ammonia production for fertilisers. The region consumed 3.7 million metric tonnes of hydrogen in 2020, with a projected increase to 4.4 million metric tonnes by 2025, mainly in industrial sectors like ammonia production. However, current hydrogen production methods are emission-intensive, generating substantial CO2. Ammonia plays a dual role in food security and decarbonisation, presenting a significant opportunity for ASEAN's transition to a low-carbon hydrogen economy. Financial support for renewable energy in ammonia production is seen as a more immediate investment option due to demand certainty and limited infrastructure requirements. By integrating low-carbon hydrogen into ammonia production, ASEAN can drive the development of supporting industries and boost competitiveness. Key policy directions for ASEAN include prioritising export markets, developing green hydrogen in resource-rich areas, and enhancing cross-industry and regional coordination. Through leveraging existing demand, obtaining financial backing, and fostering cooperation, ASEAN aims to lead the global hydrogen landscape towards a cleaner, sustainable future.
Topics
Asia
Renewable Energy
Decarbonisation
Ammonia Production
Financial Support
Industrial Sector
Low-carbon Future
Regional Cooperation
Policy Directions
Latest News