Development Implications for Malaysia: Hydrogen as a Road Transport Fuel

Renewable energy policies targeting the adoption of hydrogen as road transport fuel have been argued to have significant impacts on meeting both energy security needs and climate change goals. Transportation is among the most challenging sectors to decarbonise as it is fraught with uncertainties associated with the high cost of renewable energy. This chapter seeks to conceptualise socio-technical transition in order to analyse the usefulness of hydrogen fuel cell vehicles (FCVs) as a backstop technology in a broad sense so as to support effective transition policies by estimating gross damage and other environmental effects from FCV prioritisation. Projections analyse the potential economic–environment impact of CO₂ emissions by switching fuel utilisation from fossil fuels to hydrogen FCVs in Malaysia over the period 2015–2030. The results reveal that compared to slow or moderate adaptation, aggressive hydrogen FCV adaptation is necessary to strengthen the economy while effectively reducing gross damage and absolute CO₂ emissions. Potential hydrogen demand in Malaysia is expected to be 55 million metric tons by 2030.