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5 Empirical Research for Establishing the Potential of Renewable Hydrogen …
• Fossil-fuel and nuclear baseload power has been the backbone of the energy
system of the APAC markets for decades. The transition to a renewable energy
system is happening, but at a much slower pace than in Europe.
• There is no target or incentive for the industry to decarbonize.
• The expensive and still limited quantity of renewable energy capacity makes
cost of the renewable hydrogen too high compared to the fossil fuel-based
hydrogen.
• The policy instruments for the development of renewable energy projects
protect developers and investors from the merchant risk.
Nonetheless, renewable hydrogen could find applications in the future in the
APAC markets.
Hundreds of thousands of tons of hydrogen are used in various industrial
processes (i.e. fertilizer manufacturers, steel manufacturers, refineries…).
Growing grid capacity and curtailment issues call for solutions in Japan, Korea
and Australia. Renewable hydrogen can play a role in bringing flexibility to the
system.
Countries such as Australia and New-Zealand have excellent renewable energy
sources. They are developing strategies to produce renewable hydrogen for
exportation purpose.
Some policy instruments could be developed to support the development of
the renewable hydrogen production and offtake:
• Decarbonisation targets for the industry
• Subsidies to produce renewable hydrogen or energy (i.e. electricity, heat…)
from renewable hydrogen
• Certification of the renewable hydrogen
• Co-development of the policy instruments for renewable energy projects and
renewable hydrogen based on the Dutch model (i.e. integrated tender)
Renewable energy policies are at their early days in the APAC markets. There is
an opportunity to shape those policies based on the successful models developed
in more mature markets such as the Dutch one.
5 Empirical Research for Establishing the Potential of Renewable Hydrogen …
• Fossil-fuel and nuclear baseload power has been the backbone of the energy
system of the APAC markets for decades. The transition to a renewable energy
system is happening, but at a much slower pace than in Europe.
• There is no target or incentive for the industry to decarbonize.
• The expensive and still limited quantity of renewable energy capacity makes
cost of the renewable hydrogen too high compared to the fossil fuel-based
hydrogen.
• The policy instruments for the development of renewable energy projects
protect developers and investors from the merchant risk.
Nonetheless, renewable hydrogen could find applications in the future in the
APAC markets.
Hundreds of thousands of tons of hydrogen are used in various industrial
processes (i.e. fertilizer manufacturers, steel manufacturers, refineries…).
Growing grid capacity and curtailment issues call for solutions in Japan, Korea
and Australia. Renewable hydrogen can play a role in bringing flexibility to the
system.
Countries such as Australia and New-Zealand have excellent renewable energy
sources. They are developing strategies to produce renewable hydrogen for
exportation purpose.
Some policy instruments could be developed to support the development of
the renewable hydrogen production and offtake:
• Decarbonisation targets for the industry
• Subsidies to produce renewable hydrogen or energy (i.e. electricity, heat…)
from renewable hydrogen
• Certification of the renewable hydrogen
• Co-development of the policy instruments for renewable energy projects and
renewable hydrogen based on the Dutch model (i.e. integrated tender)
Renewable energy policies are at their early days in the APAC markets. There is
an opportunity to shape those policies based on the successful models developed
in more mature markets such as the Dutch one.