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Carbon Emission Reduction Potential of Hydrogen Production for Large-Scale Industrial Facilities in Southeast Asia

Author

Listed:
  • Alloysius Joko PURWANTO

    (Economic Research Institute for ASEAN and East Asia (ERIA))

  • Ridwan Dewayanto RUSLI

    (Cologne University of Applied Sciences and University of Luxembourg)

  • Hafis Pratama Rendra GRAHA

    (Bandung Institute of Technology)

  • Sirichai KOONAPHAPDEELERT

    (Chiang Mai University)

  • Reza Miftahul ULUM

    (University of Indonesia)

  • Citra Endah Nur SETYAWATI

    (Economic Research Institute for ASEAN and East Asia (ERIA))

  • Nadiya PRANINDITA

    (Economic Research Institute for ASEAN and East Asia (ERIA))

  • Ryan Wiratama BHASKARA

    (Economic Research Institute for ASEAN and East Asia (ERIA))

Abstract

Making use of hydrogen demand and supply forecasts reported by ERIA (2024) for the oil refining, ammonia, methanol, and steel industries in the Association of Southeast Asian Nations, this paper studies the carbon emission reduction potential of blue and green hydrogen for these large-scale industries until 2050. Future hydrogen supply and demand under the International Energy Agency’s announced pledges scenario are examined for each of these four industrial sectors, the corresponding carbon emissions calculated, and their future carbon emission reduction potential estimated. The potential of ammonia fuels and methanol for e-fuels is also considered. Levelised cost of hydrogen estimates and various carbon price scenarios are studied to calculate the government subsidies required to help finance the transition from grey to green and blue hydrogen production in the four industrial sectors in Southeast Asia in the coming decades. The insights gained inform policy strategies for a future industrial hydrogen decarbonisation transition.

Suggested Citation

  • Alloysius Joko PURWANTO & Ridwan Dewayanto RUSLI & Hafis Pratama Rendra GRAHA & Sirichai KOONAPHAPDEELERT & Reza Miftahul ULUM & Citra Endah Nur SETYAWATI & Nadiya PRANINDITA & Ryan Wiratama BHASKARA, 2025. "Carbon Emission Reduction Potential of Hydrogen Production for Large-Scale Industrial Facilities in Southeast Asia," Working Papers DP-2024-35, Economic Research Institute for ASEAN and East Asia (ERIA).
    • Handle: RePEc:era:wpaper:dp-2024-35
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    References listed on IDEAS

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    1. Daron Acemoglu & David Hemous & Lint Barrage & Philippe Aghion, 2019. "Climate Change, Directed Innovation, and Energy Transition: The Long-run Consequences of the Shale Gas Revolution," 2019 Meeting Papers 1302, Society for Economic Dynamics.
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    JEL classification:

    • L20 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - General
    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
    • O25 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Industrial Policy
    • Q42 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Alternative Energy Sources
    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy

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