04.May.2023
【CHEM】Hydrogen Energy: The Key to Future Energy Dominance
Hydrogen Energy:
The Key to Future Energy Dominance
Source: Business Weekly
Hydrogen, generated through the electrolysis of water into oxygen and hydrogen, is emerging as a critical solution for global carbon reduction. Recognized by the European Union (EU) as a cornerstone of power transition, hydrogen is gaining widespread international attention.
At the "Drive to the Future" Global Trends Forum, Robert Shen, General Manager of CHEM New Energy, delivered a keynote titled “The Energy Revolution: Hydrogen for the Future,” highlighting global hydrogen market developments, commercial opportunities, and CHEM's strategic positioning in the hydrogen industry.
Hydrogen: The Rising Star of Global Energy Transition
At FC EXPO 2023 in Tokyo, a premier international exhibition on hydrogen and fuel cells, leading manufacturers in fuel cells, automotive, electronics, energy, and investment sectors, alongside government representatives, gathered to explore cutting-edge hydrogen technologies, materials, and applications.
Hydrogen is now a central focus in the EU’s clean energy transition strategy. According to Robert Shen, the European Commission has introduced two key legislative frameworks: Defining renewable hydrogen (RFNBO)—specifying the conditions under which hydrogen, hydrogen-based fuels, and other energy carriers qualify as renewable fuels of non-biological origin (RFNBO). Life-cycle GHG emissions accounting—establishing methodologies to assess the life-cycle greenhouse gas emissions of RFNBOs.
The EU aims to lead the global hydrogen economy by expanding its clean hydrogen production capacity in phases, reinforcing its leadership in clean energy technology.
Taiwan Must Accelerate Hydrogen Development to Stay Competitive
"The years 2023 to 2025 are critical for the hydrogen industry, shaping the global hydrogen technology landscape from 2026 to 2030." — Robert Shen
Taiwan cannot afford to lag behind in a global hydrogen market projected to exceed NT$10 trillion. To secure its position, Taiwan must accelerate regulatory development, foster international collaboration, and enable local industries to expand globally.
Robert Shen urged inter-ministerial cooperation to establish investment incentives, tax benefits, feed-in tariffs (FIT), and demonstration project funding, ensuring Taiwan remains competitive in the hydrogen economy.
He also emphasized that the private sector must take action by:
- Building a complete hydrogen industry supply chain
- Securing international certifications for hydrogen products and components
- Engaging in global hydrogen pilot projects
Additionally, academic and research institutions must focus on developing fundamental scientific research, securing patents, and facilitating technology transfer to bridge the gap between research and commercial deployment.
Currently, over 19 countries are making substantial investments in hydrogen, with major players in Europe, the U.S., Japan, and South Korea leading technological advancements. However, Taiwan has yet to establish a long-term hydrogen strategy, lacks substantial funding for hydrogen R&D, and has a low number of hydrogen-related patents and international certifications.
"Without clear hydrogen regulations, Taiwan risks falling behind in the global hydrogen supply chain." — Robert Shen
Building a New Business Model to Capture Global Hydrogen Opportunities
With a strong commitment to hydrogen, CHEM has positioned itself in the global hydrogen supply chain by establishing a hydrogen production facility at Hwa Ya Technology Park.
To support its hydrogen business expansion, CHEM has developed a comprehensive global strategy:
- R&D and logistics hubs in the U.S..
- Planned manufacturing facilities in South Africa and China.
- Hwa Ya Hydrogen Manufacturing Center in Taiwan, focusing on: Power, industrial, and transportation applications; Carbon-negative technologies; Distributed hydrogen refueling stations; Microgrid systems integrating hydrogen and energy storage.
The Hwa Ya Hydrogen Manufacturing Center is now operational, with production lines undergoing test runs since Q1 2023. CHEM also plans to spin off its hydrogen business into a new subsidiary, CHEM Hydrogen, targeting India and ASEAN markets while leveraging strategic partnerships in China to establish a new global business model.
Through this initiative, CHEM is accelerating the transition toward net-zero emissions by 2050, driving innovation, sustainability, and a new era of clean energy solutions.