Germany supports Thailand’s policy and market development for green H2 and Power-to-X through the H2Uppp programme

Tim Nees

Thailand has set ambitious climate goals to achieve carbon neutrality by 2050 and to accelerate the country’s energy transition. The decision-makers have acknowledged the need to enable a fast development of innovative energy solutions, such as hydrogen (H2), and want to position the country at the forefront of the energy transition in South-East Asia. However, much remains to be done to provide a sound knowledge and understanding of Thailand’s market opportunities and to steer its development. This awareness will be essential in equipping both Thai and German stakeholders with skills regarding green hydrogen production, transport, storage and use, and in setting up a framework conducive to both innovation and investments that will support green hydrogen (H2) and Power-to-X (PtX) market development.

Financed by the German Federal Ministry for Economic Affairs and Climate Action (BMWK), H2Uppp is therefore established in Thailand and implemented by the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH in partnership with the German-Thai Chamber of Commerce (GTCC). The objective is to support the policy and market development for green H2 and Power-to-X through: (a) studies and training (b) the identification and initiation of public private partnerships (PPP) and projects; and (c) the promotion and dissemination of knowledge through identification and connection of local and international H2 specialists, in particular vis-à-vis the German private sector. Mr. Tim Nees, H2Uppp Project Manager has shared with GTCC Update magazine the direction of the programme in Thailand and how Thailand could benefit from the lessons learnt by Germany.

Can you tell us about the specific goals and objectives of the H2Uppp programme, and how it aims to promote and support the development of green hydrogen and alternative energy in Thailand?

The aim of H2Uppp is to promote green hydrogen projects and market development, especially in developing and emerging countries, by leveraging innovative German and European technology know-how through partnerships with the private sector. The programme specifically supports the identification, preparation and implementation of pilot projects for the production and use of green hydrogen.

To achieve this goal, H2Uppp assists companies in Thailand in identifying project ideas and building networks with local stakeholders. The programme collaborates with private companies to jointly implement pilot projects as part of public-private partnerships along the value chain of green hydrogen. In addition, H2Uppp supplements market development with in-depth studies, multistakeholder dialogues and technical trainings.

What are the success factors for making green hydrogen widely adopted/available in Thailand?

Renewable energy: The key foundation for widely deploying green hydrogen is the expansion of renewable energy in Thailand. Only the use of additional renewable energy for green hydrogen production is sustainable. Currently, on-site hydrogen production without the long and expensive transport of the gas is the cheapest option.

Government: The Government can play a critical role in promoting the development of green hydrogen by providing adequate strategies, policies and a regulatory framework that encourages private sector investment. Financial incentives, tax breaks and subsidies can support the deployment of green hydrogen projects and accelerate market development.

Investment: Green hydrogen projects require significant investment, and private sector investment is crucial for enabling the industry to grow. Early learnings from pilot projects, government policies and international co-operation can create trust in the Thai market and attract investment.

Value chain and infrastructure: A robust infrastructure is necessary for supporting the production, transport, storage and distribution of green hydrogen. This includes production facilities, pipelines and storage facilities as well as infrastructure at harbours, industrial parks and other economic centres.

Skilled workforce: Hydrogen technology is complex, and a skilled workforce is needed to support its deployment. Newly qualified staff must be trained to become experts at handling hydrogen and hydrogen equipment.

Collaboration: Collaboration between industry, government and academia is critical for the successful deployment of green hydrogen. These entities can work together to share knowledge, develop technology and create a favourable environment for the industry. International co-operation is also necessary to support its widespread adoption. Thailand can work with other countries to acquire technologies, share knowledge and experience, co-ordinate research and development efforts, and promote the deployment of green hydrogen.

Awareness and education: The promotion of green hydrogen as a clean and sustainable energy source for the general public is essential. Awareness and education about its benefits and potential are important for its widespread adoption. The Government and private sector can work together to raise public awareness and educate the general public about green hydrogen.

Can you give an example of a project or initiative that the H2Uppp programme has been involved in which highlights its approach and impact in promoting green hydrogen and alternative energy in Thailand?

Public-private partnership between Enapter, ERDI (CMU) and H2Uppp (GIZ): This initiative aims to establish Chiang Mai as a “Knowledge Hub for Green Hydrogen”. The hub will focus on modular green hydrogen systems and feature a training centre offering both managerial and technical training as well as a demonstration site that will set a new standard for technology installation and certification in Thailand. Participants from companies involved in project development, energy service provision and industries with a demand for hydrogen will have the opportunity to learn directly from actual green hydrogen equipment and experience a fully functioning hydrogen system.

Study series: H2Uppp, in collaboration with DNV, produces a series of studies on H2 in Thailand, including the status quo globally and in Thailand, early policy and market instruments, and business potentials around green hydrogen. The studies aim to support the development of the Thai national hydrogen strategy (currently in the process of development by EPPO/MoEN) and inform relevant players from the public and private sectors to speed up the development of a green H2 market. Stakeholder dialogues are initiated based on the results of these studies.

PtX training: In 2022 H2Uppp organized trainings on green hydrogen and PtX for private and public stakeholders, and it plans to continue doing so in 2023. The training courses provide a comprehensive overview of the entire green H2 and PtX value chain, including the opportunities of green H2 and PtX in future energy systems. After completing the training, the participants will be qualified to discuss and assess the potential production, application and trade of green H2/PtX products.

H2Uppp conference: H2Uppp, together with GTCC, organized the first H2Uppp conference on green hydrogen in Thailand in October 2022. The conference brought together about 200 public and private stakeholders to present, discuss and network about the current status of green H2 in Thailand and the next steps needed to advance the topic. The conference served as a platform to put green H2 on the agenda of decision-makers, allowed experts to network and express their opinions, and created the necessary platforms for B2G exchange and the building of a hydrogen value chain in Thailand.

How does the H2Uppp programme plan to support the development of public-private partnerships and projects in the green hydrogen and alternative energy sector in Thailand?

In collaboration with GTCC, H2Uppp covers the complete chain of project development for interested companies. This includes project scouting, sharing ideas on H2 projects with companies, supporting the creation of business consortia, project development, project management and project outreach.

Through the PPP instrument, H2Uppp can offer financial support to projects with a public benefit. The term "public benefit" refers to project results, such as demonstration/pilot projects, trainings, studies and improvements in regulatory frameworks that can be shared with other market participants.

In a PPP project, GIZ serves as the public partner, while the company serves as the private partner (such as in the PPP with Enapter). GIZ can co-operate with companies in two contractual constructs:

• Implementation agreement. In this type of agreement, GIZ provides up to 50 per cent of the project costs to the project partner, who then implements the project independently. The limit for the overall project volume is 400,000 Euros (with a maximum of 200,000 Euros from GIZ);

• Co-operation agreement. In this type of agreement, GIZ contributes up to 50 per cent, of the project costs and implements the project accordingly (mostly through contracting of services). The limit for the overall project volume is 4 million Euros (with a maximum of 2 million Euros from GIZ).

How does H2Uppp plan to mobilize networks of companies in Thailand and Germany to support the development of green hydrogen and alternative energy in Thailand?

H2Uppp engages in various activities, including conferences, business roundtables, trainings, bilateral meetings with companies, PPP projects, participation in external conferences, trade fairs, industry meetings, and exchange with associations such as the Thailand Hydrogen Club and other industry associations in Germany and Thailand.

What can Thailand learn from Germany’s success/lessons learnt in terms of green hydrogen development?

Sustainable energy transition: Germany aims to achieve a sustainable energy supply and is moving away from fossil fuels. Thailand can learn from the German experience, including the strong strategy setting of the Government of Germany on the Energiewende, and particularly the German National Hydrogen Strategy. Germany has also taken a market approach during the past few decades, such as liberalization of energy markets and the integration of European energy markets. Moreover, Germany's multi-stakeholder approach to finding consensus on the right steps for the Energiewende has received international acknowledgment.

Effective support policies and measures for market development: In order to become a leader in green hydrogen technology, Germany has brought forward and contributed to several pieces of strategy, legislation, and programmes at the European Union and national levels. This includes the German National Hydrogen Strategy, the European National Hydrogen Strategy and, just recently, the European Commission Delegated Act on Green Hydrogen. In terms of project support, Germany is involved in the IPCEI projects, the German Regulatory Sandboxes for green hydrogen projects, research funds as well as international support programmes such as H2Global, H2Diplo, H2Uppp, and the Funding Guidelines, to name just a few.

H2 Pilot Projects: Germany is pioneering the development of green hydrogen projects, including green hydrogen infrastructure, green hydrogen in steel production and chemical processes, energy storage from renewable energy plants and e-fuel in transport (trucks, trains and aviation). Thai stakeholders can witness the progress, assess advantages and disadvantages of these projects, and learn to draw conclusions on a development pathway that is adequate for Thailand.

Technical know-how: In Thailand and South-East Asia, green hydrogen is still new, while Germany has hundreds of companies that work in the context of gas production, transport and applications. In particular, for the hydrogen industry, Germany is home to leading technology providers, including Linde, MAN ES, thyssenkrupp, Siemens Energy, Neuman and Esser, Enapter and Sunfire (to name just a few). Thailand can learn from their technical expertise and co-operate with these companies to develop projects in Thailand.

Risks and barriers: There are some barriers that can be easily identified from the German experience. This can help Thailand to leapfrog and overcome challenges quicker than other countries. This includes infrastructure development, policy and regulation, standards and certification, pilot projects and capacity development.

Contact details:

Tim Nees

H2Uppp (BMWK)

Project Manager

GIZ GmbH tim.nees@giz.de www.giz.de