Global Hydrogen Review 2025

Southeast Asia

Highlights

  • Hydrogen demand in Southeast Asia reached 4 Mt in 2024, almost 4% of the global total. Hydrogen production accounted for about 8% of the regional gas supply and 1% of regional CO2 emissions. Indonesia represents over a third of regional demand, followed by Malaysia (22%), Viet Nam (15%) and Singapore (12%). Nearly half of all demand is for ammonia, of which two-thirds comes from Indonesia alone. Refining accounts for a third of demand, with 40% located in Singapore; methanol represents the remaining 20%, with 69% in Malaysia. The region currently exports ammonia (15% of production) and imports methanol.
  • Indonesia, Lao PDR, Malaysia, Singapore and Viet Nam all have hydrogen strategies in place, and there is an opportunity to implement policies encouraging fuel shifting in existing applications, as well as on certification.
  • Projects in the pipeline for low-emissions hydrogen production to 2030 add up to almost 480 ktpa. More than 90% of this in Indonesia and Malaysia; two projects alone represent nearly half of this capacity. To date, 6% of the capacity in the pipeline has reached final investment decision (FID).
  • Indonesia, Malaysia and Viet Nam have sufficient existing ammonia demand to enable economies of scale in low-emissions ammonia production. Indonesia and Malaysia also have this potential for methanol production. State-owned enterprises provide an opportunity to decarbonise current hydrogen uses.
  • Use of hydrogen for steel production could create an opportunity for Indonesia and Viet Nam, which are home to most of the region’s steel production and iron ore reserves, and for the Philippines and Thailand, which rely heavily on steel imports to meet demand. Hydrogen-based steel could contribute to satisfying the expected regional steel demand growth, but faces competition from China.
  • In the maritime sector, more than 85% of total energy demand is from international shipping in Singapore, which is pursuing a multi-fuel strategy, performing trials and defining technical standards for ammonia and methanol bunkering. In aviation, demand is concentrated in a few airports, so supplying these with synthetic fuel could make large strides towards decarbonisation.
  • Near-term actions include prioritising renewables deployment, which could have positive consequences for the hydrogen sector, such as a lower cost of capital, industry experience and standardised processes. Pilot projects that enable gradual learning for large projects can be useful, as can leveraging existing hydrogen applications to create economies of scale and anchor demand.