A Call to Embrace Green Hydrogen
Green hydrogen is emerging as a vital option in the global energy landscape, with a mounting emphasis on renewable sources. As companies pledge towards achieving 100% green energy by 2030-2050, Taiwan’s semiconductor sector is encouraged to adopt long-term strategies for using green hydrogen.
 The Global Landscape: Rise of Hydrogen
International energy organizations predict that hydrogen will constitute 12-22% of the global energy demand by 2050, a substantial climb from 0.1% in 2020. The International Energy Agency’s 2022 report reveals that hydrogen production from natural gas is currently the most cost-effective, whereas electrolysis from renewable sources remains pricier.
 Taiwan’s Current Stance: A Call for Focus on Green Hydrogen
Presently, Taiwan relies heavily on hydrogen imports and lacks emphasis on domestic production. Analysts advocate for Taiwan to prioritize electrolysis as the pathway to green hydrogen. With the capabilities to manufacture crucial electrolyser components and integrate systems, Taiwan can also explore integrating offshore wind energy for green hydrogen production.
 European Union’s Impact: The Carbon Border Adjustment Mechanism
With the introduction of the Carbon Border Adjustment Mechanism by the European Union, imposing a tax on high-carbon imports, Taiwanese semiconductor companies are prompted to consider green hydrogen. This adoption would help them evade potential carbon taxes and align with Taiwan’s climate policy objectives.
 Current Challenges and Future Plans: The Need for Strategic Planning
Although Taiwan has recognized green hydrogen as a strategic goal, it is still in the nascent stages of infrastructure development. To expedite progress, comprehensive planning and investment in production and refueling stations are vital. Notable initiatives include the state-owned China Petroleum Corp. and Linde-LienHwa’s plans to build hydrogen refueling stations in Kaohsiung and Tainan in 2023. However, increased investment is essential for hydrogen generation.
Taiwan’s Opportunity in Green Hydrogen
Taiwan’s embrace of green hydrogen offers a unique opportunity in the global energy transition. By prioritizing green hydrogen and aligning with international trends, Taiwan can position itself as a leader in renewable energy.
The call to action for Taiwanese companies, particularly in the semiconductor industry, to focus on green hydrogen aligns with a broader global movement towards sustainable energy. Strategic planning, investment, and integration of existing capabilities in electrolysis and offshore wind energy will pave the way for Taiwan’s meaningful participation in the global green energy landscape.
This shift towards green hydrogen not only supports Taiwan’s climate goals but also strengthens its position in international trade, avoiding potential carbon taxes and enhancing its energy resilience. It’s a pathway that signals a significant contribution to the global movement towards a greener future.
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