Strategic plan for hydrogen utilisation in the energy sector of Thailand

Assoc. Prof. Sirichai Koonaphapdeelert

In 2023, Energy Research and Development Institute-Nakornping, Chiang Mai University, in collaboration with the Energy Research Institute at Chulalongkorn University, launched the "Strategic Plan for Hydrogen Utilisation in the Energy Sector" project. This initiative, supported by the Energy Policy and Planning Office of the Ministry of Energy, Thailand, aims to foster the use of hydrogen as a new, clean energy source. The primary objectives are to reduce fossil fuel consumption in the energy sector, promote the efficient use of surplus energy from renewable sources, address the intermittency of renewable energy, and enhance the flexibility of the electricity grid.

The project endeavors to stabilise the electricity grid integrated with renewable energy sources, reduce renewable energy production costs by enabling long-term energy storage under the AEDP2018 plan, and assist Thailand in achieving its goal of carbon neutrality by 2050 and net-zero greenhouse gas emissions by 2065, in line with the United Nations Framework Convention on Climate Change Conference of the Parties (UNFCCC COP) 26 or COP26.

Furthermore, this project aims to boost the competitiveness and investment capabilities of Thai entrepreneurs, allowing them to adapt to investments in a low-carbon economy in alignment with global trends. It also seeks to leverage modern innovation investments to create economic value, consistent with the country’s long-term greenhouse gas emission reduction strategies.

PROJECT RESULTS

Based on the results of the project, we can assess the usage patterns, production potential, and cost-effectiveness of various hydrogen applications by considering alternative energy sources. The shortand medium-term vision and goals can be summarised as follows: “Thailand is prepared to commence commercial hydrogen utilisation in the energy sector by 2030 and to sustainably grow it into a key option for achieving carbon neutrality by 2050.”

To achieve these goals, the development strategy is divided into four key areas;

Strategy 1: Market development and user incentives

To promote the use of hydrogen among target groups (power plants, industrial factories, and vehicles) as a replacement for fossil fuels.

Strategy 2: Promotion of domestic research and industrial development

To support domestic hydrogen production and reduce reliance on imports.

Strategy 3: Infrastructure development

To prepare the necessary infrastructure to support the growth of industries related to the production, storage, transportation, and use of hydrogen in the energy sector, as well as international hydrogen trade.

Strategy 4: Regulatory and standards improvement

To ensure readiness in legal frameworks, standards, and regulations to support the procurement and utilisation of hydrogen throughout the value chain.

Expanding target groups for hydrogen use: To achieve long-term goals and meet the diverse energy demands of various sectors, as illustrated in Figure 1, the strategy includes;

• Electricity generation sector: Promoting the use of hydrogen primarily as a mixed fuel through the natural gas pipeline network, with an expected initial mix ratio of about 20% by volume in the early stages of commercial development by 2030, maintaining this ratio until 2050. Other forms include using ammonia mixed with natural gas, generating electricity with hydrogen fuel cells, and employing hydrogen for energy storage and load management to support the growth of variable renewable energy (VRE) and future green hydrogen production.

• Industrial sector: Utilising hydrogen as a mixed fuel for thermal applications, especially in areas within a 50 km radius of the natural gas pipeline network, to align with the hydrogen

blending plan for electricity production. In other areas, hydrogen will be transported in various forms to replace LPG and fuel oil, offering the highest investment returns.

• Transportation sector: Focusing on supporting heavy-duty trucks where fuel cell electric vehicle (FCEV) can compete with battery electric vehicles (BEV). Additionally, considering hydrogen use in public buses and intercity trains which are seeing increased adoption globally. Hydrogen fuel stations can be strategically located for heavy-duty vehicles with clear routes. Long-term considerations may include light-duty vehicles and additional hydrogen applications in trains, where hydrogen locomotives may offer advantages over electric ones, given the infrastructure requirements for overhead power lines.

Technology development goals: The project aims to improve the cost of producing blue hydrogen and green hydrogen. Recent studies indicate significant advancements in hydrogen production technology, driven by numerous pilot projects worldwide. The projected production costs for blue hydrogen are approximately $2.5 per ton by 2030 and $1.65 per ton by 2050. For green hydrogen, costs are expected to be around $3 per ton by 2030 and approximately $2.3 per ton by 2050.

Commercial hydrogen support strategies: Enhancing strategies to support the commercial use and production of hydrogen includes considering carbon certification for hydrogen production (hydrogen certificates) as a mechanism to support and standardise low-carbon hydrogen production, particularly for blue and green hydrogen in the long term. This also encompasses investment promotion benefits and initiating studies on implementing carbon taxes in Thailand.

Contact details:

Assoc. Prof. Sirichai Koonaphapdeelert Director Energy Research and Development Institute-Nakornping, Chiang Mai University, Thailand www.erdi.cmu.ac.th