News Asia
ASEAN’s Hydrogen Transition: Industry Growth, Economic Viability, and Future Prospects
Hydrogen is emerging as a crucial element in Southeast Asia’s energy transition, driven by rising industrial demand and a shift towards cleaner alternatives. Between 2015 and 2021, hydrogen consumption in ASEAN’s industry sector grew significantly, increasing from 3.27 million tons per annum (MTPA) to 3.75 MTPA. The ammonia and oil refining industries remain the primary consumers, with ammonia’s share rising from 46% in 2015 to 49% in 2021, while oil refining’s share declined from 37% to 32%. The methanol industry has also expanded its hydrogen use, reaching 15% in 2021, while demand from the iron and steel sector has dwindled.
Economic and Technological Dynamics
Currently, the majority of hydrogen in ASEAN is produced using steam methane reforming (SMR), which remains more cost-effective than emerging blue and green hydrogen alternatives. However, this dynamic is expected to shift by 2040–2050, as electrolyser costs decline and renewable energy prices fall. By 2030, the cost of green hydrogen is projected to drop to $1.1–$2 per kg, and further to below $1 per kg by 2050, making it a viable alternative to traditional hydrogen production.
Green hydrogen’s competitiveness depends on falling electricity costs, economies of scale, and technological advancements in proton exchange membrane (PEM) electrolysis. Meanwhile, carbon pricing and government incentives will play a crucial role in accelerating this transition. For instance, the cost of blue hydrogen-based ammonia could break even with SMR hydrogen at a carbon price of $30 per ton.
Infrastructure and Investment Needs
A transition towards decarbonised hydrogen in ASEAN will require massive infrastructure investments. Currently, major refineries in Indonesia, Thailand, and Singapore produce 30–70 KTPA of hydrogen, primarily for internal use. However, meeting the growing industrial demand for green hydrogen would necessitate 1,000–2,200 MW of peak solar PV capacity and 700–1,500 MW of electrolyser capacity per site.
While Australia, China, and South Korea are planning large-scale electrolyser facilities, Southeast Asia still lacks sufficiently large single-site solar PV, wind, or geothermal projects. Some notable developments include Singapore’s Sunseap 7 GW solar PV project in Indonesia’s Riau Islands and Anantara’s 3.5 GW solar project. These projects indicate a regional push toward renewable-based hydrogen production, but further investments in storage, transport, and carbon capture technologies are necessary.
The Path Forward
ASEAN’s hydrogen economy is at a turning point, with governments and industries exploring blue hydrogen as a near-term solution while gradually ramping up green hydrogen infrastructure. Fossil fuel companies may initially favor carbon capture and storage (CCS) technologies to limit costs, but the long-term goal remains a full transition to renewable-based hydrogen.
Beyond traditional industries, green hydrogen and ammonia could play a crucial role in power generation and transportation, particularly as a complementary fuel for coal and natural gas plants and as a low-carbon feedstock for synthetic fuels. However, achieving cost competitiveness will require public-private partnerships, subsidies, and carbon pricing mechanisms.
Despite current challenges, the region’s hydrogen landscape is evolving, with green hydrogen projected to become economically viable by 2030 and dominant by 2050. A strategic mix of policy support, technological advancements, and infrastructure investment will determine how effectively ASEAN transitions to a hydrogen-powered future.
Singapore to Build World’s Largest Automated Port at Tuas
Singapore is transforming Tuas Port into the world’s largest fully automated shipping hub, integrating AI-driven logistics and consolidating its existing ports. Expected to be completed in the 2040s, the project aims to surpass Shanghai in capacity, reinforcing Singapore’s role as a global trade leader.
The port expansion is a key component of Singapore’s long-term strategy to enhance efficiency, reduce costs, and improve cargo handling. By leveraging automation and artificial intelligence, Tuas Port will streamline operations, increase shipping capacity, and optimize supply chain management.
Centralizing port activities at Tuas will help Singapore maintain its competitive edge in global maritime logistics. The project is also expected to contribute to sustainability goals, with smart technologies minimizing energy consumption and emissions.
As the world’s second-busiest port, Singapore continues to invest in cutting-edge infrastructure to strengthen its status as a major shipping and trade hub.
K-water Secures $15.7M Deal to Enhance Botswana’s Water Management
South Korea’s Korea Water Resources Corporation (K-water) has signed a $15.7 million contract with Botswana’s Ministry of Lands and Water Affairs to develop an advanced water management system in the southern African nation. This initiative aims to combat Botswana’s chronic water shortages, worsened by climate change, droughts, and unpredictable rainfall patterns.
Focusing on the Limpopo River, a key water source near Gaborone, K-water will implement remote sensing and real-time monitoring over the next three years until 2028. A dedicated control center will also be built to oversee water levels and precipitation data.
Botswana has made water security a national priority amid growing concerns across Africa. Minister of Lands and Water Affairs Oneetse Ramogapi stressed the project’s impact, saying, “The introduction of K-water’s technology will help alleviate Botswana’s water crisis and sustain economic growth.”
K-water’s partnership with Botswana dates back to 2017, with previous feasibility studies and a master plan. The collaboration accelerated after COP28 discussions in 2023, leading to K-water’s appointment as the sole contractor.
K-water CEO Yun Seog-dae described the deal as a milestone, marking the company’s first export of water management technology to Africa. He emphasized that this venture could open doors for further economic cooperation with African nations.
This project is set to enhance Botswana’s water resilience, ensuring sustainable resource management and strengthening international partnerships in the water sector.
Metro Pacific Water Begins Construction of Philippines’ Largest Desalination Plant
Metro Pacific Water (MPW) has officially broken ground on the Metro Iloilo Desalination Facility, set to be the largest desalination plant in the Philippines. The P5.5-billion project aims to address Iloilo’s growing demand for clean water, producing 66.5 million liters of potable water daily through advanced reverse osmosis technology.
The groundbreaking ceremony on February 21 in Barangay Ingore, La Paz, was attended by Iloilo City Mayor Jerry Treñas, Iloilo Governor Arthur Defensor Jr., MPIC Chairman Manuel Pangilinan, and Department of the Interior and Local Government Secretary Jonvic Remulla.
Once operational, the plant will provide a stable water supply to over 400,000 residents, reducing reliance on unpredictable freshwater sources like rivers and groundwater. MPW President Cristopher Andrew Pangilinan emphasized the project’s role in ensuring water security, particularly during droughts.
Mayor Treñas highlighted Iloilo’s economic growth, driven by BPOs and tourism, stressing the need for sustainable infrastructure. “With growth come great challenges, especially in securing a dependable water supply. This facility guarantees Iloilo’s long-term water needs,” he said.
The project is a joint initiative between MPW, French water management company SUEZ, and local construction firm Jemco. SUEZ will lead the plant’s construction and operation, while Jemco will assist in its development.
MPW, a subsidiary of Metro Pacific Investments Corporation (MPIC), specializes in water and wastewater infrastructure across Asia, reinforcing its commitment to sustainable water solutions.
Asia’s Renewable Energy Growth Faces Coal Dependency Challenges
Asia’s renewable energy sector is expanding, but coal continues to dominate the region’s power mix, according to a new report by the Energy Industries Council (EIC). The EIC Asia OPEX Report, released on November 19, highlights key trends in offshore wind, solar energy, and energy storage while underscoring the challenges posed by grid limitations, policy inconsistencies, and reliance on fossil fuels.
Offshore wind is emerging as a major growth area, especially in Taiwan, which added 1.5 GW of capacity in 2024 through projects like Changfang and Xidao Wind Farm (600 MW) and Changhua 1 and 2a Wind Farms (900 MW). However, regulatory hurdles and geopolitical risks discourage foreign investment across parts of Asia.
Solar energy is also expanding, with India leading installations and Gujarat’s Khavda Solar Park reaching 2 GW. Floating solar is gaining traction in land-scarce regions like Taiwan and Southeast Asia, while Vietnam is shifting toward rooftop solar with a 50% penetration target by 2030. However, grid congestion and policy uncertainty caused a 40% drop in solar installations in 2023 before a rebound in 2024.
Despite progress, coal still supplies 41% of Asia’s electricity, particularly in India, Vietnam, and Indonesia. The ASEAN region aims for 35% renewable capacity by 2025, but progress remains uneven.
The report calls for stronger policy coordination, grid investment, and financial incentives to accelerate Asia’s clean energy transition and reduce coal dependency.
