In the Malaysia Energy Vision 2060, one of the objectives is to blend 5-15% hydrogen with natural gas in the national pipeline network by 2030, and subsequently increasing the blend to 50% by 2050 and establish a 100% carbon-free gas by integrating photovoltaic or wind resources with the electricity grid by 2060. On top of that, since Malaysia has aimed to reduce the GHG emission by 45% before the year 2030, hydrogen serves as a potential alternative to produce and utilise cleaner energy. However, producing hydrogen is currently far more expensive than fossil-fuel based production. Thus, exploring strategies to make hydrogen a cost-competitive energy source for climate solution is needed.
In this policy brief, the challenges in accelerating clean energy hydrogen transition in Malaysia were identified and recommendations for achieving low-carbon hydrogen economy were proposed by investigating the current perception and acceptance level of consumers and businesses in promoting hydrogen energy, examining the internal and external influential factors in implementing green financing mechanisms and assessing environmental performance (LCA) and techno-economic feasibility (TEA) and cost-benefit analysis of hydrogen production technologies.
