Brunei Darussalam: Shifting to a Hydrogen Society

Date:

26 June 2020

Category:

Brunei Darussalam, Energy

Type:

Research Project Reports

Authors:

Shigeru Kimura, Osamu Ikeda, Hirazaku Ipponsugi, Takeshi Miyasugi, Sakwi Kim, Romeo Pacudan, Muhammad Nabih Fakhri bin Matussin

                                                Editors:
                                            ERIA

Tags:

Energy, Brunei Darussalam, Hydrogen

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Brunei Darussalam has started to produce hydrogen, called SPERA Hydrogen, from processed gas to be generated during the production process of liquefied natural gas (LNG) and has been exporting it to Japan since the end of 2019. Hydrogen is basically classified as clean energy because no carbon dioxide (CO₂) is emitted after its combustion and it is therefore expected to be used globally in the future. Brunei’s CO₂ emission is mainly from road transport due to high consumption of gasoline and diesel oil, and power generation which relies on consumption of natural gas. If Brunei could shift from oil and gas to hydrogen, it could drastically reduce CO₂ emissions. This means that hydrogen could be a sustainable energy or technology for Brunei, but hydrogen’s much higher supply cost than that of oil and gas is still an obstacle to such a shift. This study suggests that if hydrogen demand will be more than 70,000 m³ per hour, the hydrogen supply cost at a refueling station of 1,000 Nm³/h will decline to around US$0.80/m³. This is still higher than current gasoline and gas prices, but these prices are fully subsidised by the Brunei government. Considering the two major benefits of hydrogen, which are a reduction of CO₂ emissions and savings in oil and gas consumption, hydrogen’s supply cost of US$0.80/m³ could become acceptable in Brunei.