KUALA LUMPUR (June 29): Policymakers need a strong energy governance ecosystem for fuels like hydrogen to thrive in their energy transition, said the International Energy Agency (IEA).
Its lead energy analyst for world energy outlook Dr Peter Zeniewski said policymakers should also think about the type of business models to unlock hydrogen at scale, with the support of private funding, as well as sponsors for bankable projects.
“Hydrogen is a long and complex supply chain with a lot of uncertainties on how to scale up,” he said during a webinar in a panel discussion on “Bridge or Destination? LNG & Hydrogen in the Energy Transition”.
Answering a question on quick wins for Asia in adoption of hydrogen in the energy transition, Zeniewski said hydrogen was not really a ‘quick win’ solution, in the same way as rapid deployment of renewables to decarbonise electricity supply or switching from coal to existing gas plants.
He noted that hydrogen was a long-term solution for ‘hard to abate’ sectors, requiring a new ecosystem consisting of both new and repurposed long-lived infrastructure, supportive policies, research and development programmes and targets, as well as market reforms to differentiate low-carbon gases.
“All this takes time, but the groundwork needs to start now. The long-term opportunity is a low-carbon capital stock, as the world increasingly differentiates fuels-based on their lifecycle emissions,” said Zeniewski.
Meanwhile, Pavilion Energy Pte Ltd group head of strategy and corporate development Fabian Kor said liquefied natural gas (LNG) would play a part in the energy mix for a long time and post-2050, but it will be declining in the overall mix.
“LNG needs to be decarbonised. Gas infrastructure can be adapted but the maximum is probably only up to 15% due to the embrittlement of steel by hydrogen.
“New technology might solve it but ultimately parallel networks, which are high cost, will need to be built,” he added.
The webinar was part of Singapore International Energy Week’s (SIEW) Energy Insights Webinar Series and was held in partnership with SIEW’s event partner S&P Global Platts.
