IDEAS home Printed from https://ideas.repec.org/a/eee/rensus/v216y2025ics1364032125003387.html
   My bibliography  Save this article

Prospect of green hydrogen in Malaysian iron and steel industry: Techno-economic assessment and energy modelling using PyPSA-Earth

Author

Listed:
  • Yu, Soh Mian
  • Wong, Shen Yuong
  • Fedotova, Ekaterina
  • Ahmad, Muhammad Shakeel
  • Fioriti, Davide
  • Rahim, Nasrudin Abd

Abstract

The iron and steel sector stands as a significant contributor to greenhouse gas (GHG) emissions, and highly challenging for deep decarbonization. Although green hydrogen and renewable energy emerge as a promising solution, comprehensive infrastructure and system analyses are required to evaluate the feasibility. This study proposes a methodology to assess green hydrogen deployment for both primary (hydrogen as a reducing agent) and secondary (hydrogen as a combustion fuel) iron and steel production in Malaysia. PyPSA-Earth energy modeling tool has been employed to estimate the solar potential of Malaysia and the Levelized Cost of Electricity (LCOE). With an investment cost of $847.44/kW and an LCOE of RM22.5–26.6/kWe. The study compares centralized and decentralized hydrogen generation scenarios. The assessment suggested that full hydrogen adoption requires 38–39 TWh/year of renewable electricity which translates to 758.85 thousand tonnes of hydrogen annually. The estimated cost of solar farms, electrolyzers, and hydrogen transportation totals $63–64 billion for 100 % decarbonization and $36–37 billion for the primary sector alone (excluding retrofitting cost). Infrastructure costs in a decentralized scenario amount to $22–23 billion for both sectors and $12–13 billion for the primary sector alone. This comprehensive analysis provides valuable insights into the preliminary cost estimations in transformation of Malaysia's iron and steel industry into a more sustainable sector, and can be scaled up to any region worldwide.

Suggested Citation

  • Yu, Soh Mian & Wong, Shen Yuong & Fedotova, Ekaterina & Ahmad, Muhammad Shakeel & Fioriti, Davide & Rahim, Nasrudin Abd, 2025. "Prospect of green hydrogen in Malaysian iron and steel industry: Techno-economic assessment and energy modelling using PyPSA-Earth," Renewable and Sustainable Energy Reviews, Elsevier, vol. 216(C).
  • Handle: RePEc:eee:rensus:v:216:y:2025:i:c:s1364032125003387
    DOI: 10.1016/j.rser.2025.115665
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1364032125003387
    Download Restriction: Full text for ScienceDirect subscribers only

    File URL: https://libkey.io/10.1016/j.rser.2025.115665?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to

    for a different version of it.

    References listed on IDEAS

    as
    1. Heeyeon Lee & Sanghun Lee, 2022. "Economic Analysis on Hydrogen Pipeline Infrastructure Establishment Scenarios: Case Study of South Korea," Energies, MDPI, vol. 15(18), pages 1-13, September.
    2. Abhinav Bhaskar & Mohsen Assadi & Homam Nikpey Somehsaraei, 2020. "Decarbonization of the Iron and Steel Industry with Direct Reduction of Iron Ore with Green Hydrogen," Energies, MDPI, vol. 13(3), pages 1-23, February.
    3. Bhandari, Ramchandra & Shah, Ronak Rakesh, 2021. "Hydrogen as energy carrier: Techno-economic assessment of decentralized hydrogen production in Germany," Renewable Energy, Elsevier, vol. 177(C), pages 915-931.
    4. Parzen, Maximilian & Abdel-Khalek, Hazem & Fedotova, Ekaterina & Mahmood, Matin & Frysztacki, Martha Maria & Hampp, Johannes & Franken, Lukas & Schumm, Leon & Neumann, Fabian & Poli, Davide & Kiprakis, 2023. "PyPSA-Earth. A new global open energy system optimization model demonstrated in Africa," Applied Energy, Elsevier, vol. 341(C).
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Solanki, Bhanupratap Singh & Lim, Hoyoung & Yoon, Seok Jun & Ham, Hyung Chul & Park, Han Saem & Lee, Ha Eun & Lee, See Hoon, 2025. "Recent advancement of non-noble metal catalysts for hydrogen production by NH3 decomposition," Renewable and Sustainable Energy Reviews, Elsevier, vol. 207(C).
    2. Zhao, Yaling & Zhao, Bin & Yao, Yanchen & Jia, Xiaohan & Peng, Xueyuan, 2024. "Experimental study and sensitivity analysis of performance for a hydrogen diaphragm compressor," Renewable Energy, Elsevier, vol. 237(PD).
    3. Lan, Penghang & Chen, She & Li, Qihang & Li, Kelin & Wang, Feng & Zhao, Yaoxun, 2024. "Intelligent hydrogen-ammonia combined energy storage system with deep reinforcement learning," Renewable Energy, Elsevier, vol. 237(PB).
    4. Shanbhag, Mahesh M. & Mishra, Shanu & Shetti, Nagaraj P. & Pollet, Bruno G. & Kalanur, Shankara S., 2025. "Exploring the role of saline water splitting in sustainable energy solutions and hydrogen economy," Applied Energy, Elsevier, vol. 389(C).
    5. Bożena Gajdzik & Radosław Wolniak & Wiesław Grebski, 2025. "An Econometric Analysis of CO 2 Emission Intensity in Poland’s Blast Furnace–Basic Oxygen Furnace Steelmaking Process," Sustainability, MDPI, vol. 17(9), pages 1-30, April.
    6. Salvatore Digiesi & Giovanni Mummolo & Micaela Vitti, 2022. "Minimum Emissions Configuration of a Green Energy–Steel System: An Analytical Model," Energies, MDPI, vol. 15(9), pages 1-21, May.
    7. Dasireddy, Venkata D.B.C. & Likozar, Blaž, 2022. "Cu–Mn–O nano-particle/nano-sheet spinel-type materials as catalysts in methanol steam reforming (MSR) and preferential oxidation (PROX) reaction for purified hydrogen production," Renewable Energy, Elsevier, vol. 182(C), pages 713-724.
    8. Cristina Hora & Florin Ciprian Dan & Dinu-Calin Secui & Horea Nicolae Hora, 2024. "Systematic Literature Review on Pipeline Transport Losses of Hydrogen, Methane, and Their Mixture, Hythane," Energies, MDPI, vol. 17(18), pages 1-22, September.
    9. Tobias Mueller & Steven Gronau, 2023. "Fostering Macroeconomic Research on Hydrogen-Powered Aviation: A Systematic Literature Review on General Equilibrium Models," Energies, MDPI, vol. 16(3), pages 1-33, February.
    10. Bin Xu, 2022. "How to Efficiently Reduce the Carbon Intensity of the Heavy Industry in China? Using Quantile Regression Approach," IJERPH, MDPI, vol. 19(19), pages 1-24, October.
    11. Ye, Yang & Yue, Yi & Lu, Jianfeng & Ding, Jing & Wang, Weilong & Yan, Jinyue, 2021. "Enhanced hydrogen storage of a LaNi5 based reactor by using phase change materials," Renewable Energy, Elsevier, vol. 180(C), pages 734-743.
    12. Zhao, Meng-Jie & He, Qian & Xiang, Ting & Ya, Hua-Qin & Luo, Hao & Wan, Shanhong & Ding, Jun & He, Jian-Bo, 2023. "Automatic operation of decoupled water electrolysis based on bipolar electrode," Renewable Energy, Elsevier, vol. 203(C), pages 583-591.
    13. Shen, Xiaojun & Li, Xingyi & Yuan, Jiahai & Jin, Yu, 2022. "A hydrogen-based zero-carbon microgrid demonstration in renewable-rich remote areas: System design and economic feasibility," Applied Energy, Elsevier, vol. 326(C).
    14. Siavashi, Majid & Hosseini, Farzad & Talesh Bahrami, Hamid Reza, 2021. "A new design with preheating and layered porous ceramic for hydrogen production through methane steam reforming process," Energy, Elsevier, vol. 231(C).
    15. Paul Wolfram & Qingshi Tu & Niko Heeren & Stefan Pauliuk & Edgar G. Hertwich, 2021. "Material efficiency and climate change mitigation of passenger vehicles," Journal of Industrial Ecology, Yale University, vol. 25(2), pages 494-510, April.
    16. Takuma Watari & André Cabrera Serrenho & Lukas Gast & Jonathan Cullen & Julian Allwood, 2023. "Feasible supply of steel and cement within a carbon budget is likely to fall short of expected global demand," Nature Communications, Nature, vol. 14(1), pages 1-10, December.
    17. Bhandari, Ramchandra & Subedi, Subodh, 2023. "Evaluation of surplus hydroelectricity potential in Nepal until 2040 and its use for hydrogen production via electrolysis," Renewable Energy, Elsevier, vol. 212(C), pages 403-414.
    18. Bhandari, Ramchandra, 2022. "Green hydrogen production potential in West Africa – Case of Niger," Renewable Energy, Elsevier, vol. 196(C), pages 800-811.
    19. Bachirou Djibo Boubé & Ramchandra Bhandari & Moussa Mounkaila Saley & Abdou Latif Bonkaney & Rabani Adamou, 2025. "Techno-Economic Analysis of Geospatial Green Hydrogen Potential Using Solar Photovoltaic in Niger: Application of PEM and Alkaline Water Electrolyzers," Energies, MDPI, vol. 18(7), pages 1-23, April.
    20. Adoum Abdoulaye, Mahamat & Waita, Sebastian & Wabuge Wekesa, Cyrus & Mwabora, Julius Mwakondo, 2024. "Optimal sizing of an off-grid and grid-connected hybrid photovoltaic-wind system with battery and fuel cell storage system: A techno-economic, environmental, and social assessment," Applied Energy, Elsevier, vol. 365(C).

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:rensus:v:216:y:2025:i:c:s1364032125003387. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/600126/description#description .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.