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If Southeast Asia’s hydrogen development continues at its current pace, the region risks remaining a consumer rather than becoming a producer, experts say. (Photo: iStock)
Southeast Asia’s hydrogen demand reached 4 million tonnes in 2024, yet the region is still struggling to become self-sufficient. Despite strong industrial needs and significant renewable potential, only 6% of announced low-emissions hydrogen capacity has reached a final investment decision (FID).
In its Dec. 9 webinar “Accelerating hydrogen in Southeast Asia: From promise to practical pathways,” the International Energy Agency (IEA) examined how the region can turn early interest into scalable adoption, highlighting the concentration of industrial demand, the slow progress of project pipelines, and the policy actions needed to unlock investment.
If hydrogen development continues at its current pace, “Southeast Asia is unlikely to become a major producer of green hydrogen—more likely a consumer,” said Alex Tancock, CEO of InterContinental Energy, a global green hydrogen developer.
High costs, low renewables, and fragmented strategies slow momentum
Southeast Asia consumed 4 million tonnes of hydrogen in 2024, with Indonesia, Malaysia, Vietnam, and Singapore accounting for 85% of the total. Most hydrogen is used in ammonia, methanol, and refining, and production remains almost entirely fossil-based, with about 80% coming from natural gas and the rest from refinery by-product hydrogen.
