Koriyama/Fukushima, 29 November 2023: Recognising the potential of hydrogen as a crucial energy resource for enabling the shift towards sustainable energy, stakeholders from countries within the East Asia Summit (EAS) region convened at the second EAS Hydrogen Workshop. Organised by the Economic Research Institute for ASEAN and East Asia (ERIA) and supported by Japan’s Ministry of Economy, Trade and Industry (METI), this collective acknowledgment underscores the necessity for collaborative efforts among EAS countries. Encompassing both hydrogen producers and consumers, the Workshop aimed to establish a comprehensive network for hydrogen distribution across the region, fostering a collaborative synergy amongst participating nations.

Hino Yukari, Director of Hydrogen and Ammonia Division at METI Japan, inaugurated the workshop, emphasising the significance of hydrogen as a fundamental element in achieving carbon neutrality. She highlighted that currently, over 40 nations worldwide have formulated their national hydrogen strategies. Japan notably stands at the forefront of hydrogen research and development, undertaking demonstration projects and implementing large-scale production with government support. Additionally, she emphasised that the current hydrogen market is still in its infancy, and that METI consistently advocates for international collaboration and transition towards a hydrogen-based society.

Following Yukari’s address, Shigeru Kimura, Special Advisor to the President for Energy Affairs at ERIA, delivered the second opening speech. He underscored the significance of hydrogen in achieving carbon neutrality, noting its combustion similar to fossil fuels without CO2 emissions. He highlighted potential uncertainties in its utilisation, particularly concerning hydrogen consumption, production, and supply costs. He also stated that this workshop serves as an opportunity to present recent progress in hydrogen supply, demand development, and policy frameworks.

Dr Eiji Ohira, Director-General of the Fuel Cell and Hydrogen Office in the Advanced Battery and Hydrogen Technology Department at the New Energy and Industrial Technology Development Organization (NEDO), presented Japan’s latest advancements in hydrogen development. He highlighted Japan’s revised hydrogen strategy in June 2023, targeting 12 million tons of H2 by 2040 and aiming for 15 GW from the electrolysis process by 2030. Director-General Ohira showcased the World Energy Network (WE-NET) focusing on hydrogen supply chains, expressing a desire to expand their activities beyond Japan, extending globally.

The global trend of the hydrogen supply and demand situation was presented by Jose Miguel Bermudez Menendes, Energy Technology Analyst at the International Energy Agency (IEA). He highlighted the difficulties in scaling up low-emission hydrogen production, where there is potential for significant increases in output but still faces cost-related obstacles. Additionally, he emphasised that the current attempts to boost demand are inadequate to fulfil climate goals.

This workshop explored the prospects for supply and demand for low-carbon or green hydrogen in the region. The discussion about the supply potential primarily concentrated on the viable approaches that EAS countries see in their hydrogen strategy, encompassing the cost assessment of hydrogen production, storage, and transportation. Ikeda Osamu from Chiyoda Corporation delivered the theme on hydrogen production from natural gas and MCH as a hydrogen carrier. Hideo Shigekiyo from Kawasaki Heavy Industries, Ltd presented about liquid hydrogen as a hydrogen carrier and technology development for hydrogen power generation. Additionally, Misawa Nobuhiro from Electric Power Development Co., Ltd. (J-POWER) the topic of CO2-free hydrogen from coal, while Koga Yuuki from Toshiba Energy Systems & Solutions Corporation, Japan talked about hydrogen production from electrolysis using solar PV. The last speaker for this session was ‘Awadh Asyraf Bin Supri, from Gentari Hydrogen Sdn. Bhd., Malaysia discussing hydrogen development in Malaysia. Shigeru Kimura from ERIA moderated this session.

On the demand side, the discussion covered the typical sectors that are expected to be the primary users of low-carbon hydrogen, such as power generation using gas turbines and transportation with hydrogen fuel cell vehicles, but also explored the potential of other sectors. The sectors primarily utilising hydrogen as feedstock are oil refining, ammonia production, methanol production, and the steel industry. This session was moderated by Dr Joko Purwanto, ERIA Energy Economist. The panellists were Ichiro Kutani from IEEJ who discussed hydrogen demand in industry sector; Dr Indra Chandra Setiawan from Toyota Daihatsu Engineering & Manufacturing Corporation who talked about hydrogen demand for the transport sector; Dr Hisataka Yakabe from Tokyo Gas Co., Ltd who discussed decarbonising residential, commercial, and industrial demand through e-methane; and Kenji Takahashi from JERA Co., Inc who addressed hydrogen demand including fuel ammonia in the power sector.

The hydrogen policy among EAS countries was discussed in the last session on policy brief, moderated by Shigeru Kimura. The presenters were from eight countries: Dr Zheng Lyu (China), Dr Natarajan Rajalakshmi (India), Taufiqurrahman Aldi (Indonesia), Tomohiko Adachi (METI, Japan), Kairul Anuar Mukhtar (Malaysia), Steve James (New Zealand), Danilo Vivar (the Philippines), and Dr Yaowateera Achawangkul (Thailand).

Toru Furuichi, the Director General for Research and Policy Design Administration of ERIA, concluded the session. He highlighted ERIA's support of hydrogen as a means of reducing carbon emissions and urged EAS countries to conduct thorough assessments of the development of a hydrogen economy, with a particular focus on the sharing of information about technology and financing.