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11 Dec 2024

Shaping the ASEAN Energy Transition: Insights from Black & Veatch

Shaping the ASEAN Energy Transition: Insights from Black & Veatch

In a recent interview at ENLIT Asia, Narsingh Chaudhary, President of Asia Pacific and India for Black & Veatch, shared valuable perspectives on the future of energy in Southeast Asia. His insights highlight the complex challenges and promising opportunities facing the region's energy sector.

Pragmatic Approaches to Existing Assets

Chaudhary emphasised the importance of addressing current infrastructure while planning for the future. "Industry players planning new energy assets have the option to adopt new technologies to reduce their carbon footprint. But what options do they have for their existing assets?" he noted. This pragmatic view is particularly relevant given the significant role coal still plays in ASEAN's electricity generation.

Strategies such as retrofitting coal plants with carbon capture technology or co-firing with cleaner fuels offer a practical middle ground. These methods allow countries to gradually reduce emissions while maintaining energy supply stability and making the most of current investments. Such approaches are particularly relevant for nations heavily reliant on coal, providing a pathway to cleaner energy without immediate, drastic changes.

Black & Veatch is actively working on such solutions. Chaudhary mentioned a recent contract within the region for carbon capture on existing coal-fired power plants. He explained, "We're looking at post-combustion carbon capture and seeing what decarbonisation options are possible on those assets."

Hydrogen: A Promising Frontier

Hydrogen emerged as a key topic in Chaudhary's discussion, as it has across the region in the last few years. He highlighted Black & Veatch's involvement in building a 220-megawatt green hydrogen project in Utah, set to be ready in the next year. Rapid progress in hydrogen technology is encouraging for Southeast Asia's energy transition.

"When I talk to customers and partners in this part of the world, many times they are unaware how far the technology has evolved," Chaudhary said. He believes there's an opportunity to bring this learning curve to Southeast Asia and help derisk similar projects in the region.

For ASEAN countries lacking abundant green power, Chaudhary suggested blue hydrogen could serve as an interim solution. "There's a thought process that blue hydrogen can become an intermediate energy transition methodology or fuel," he explained, highlighting Black & Veatch's flexible approach to regional energy challenges.

Chaudhary emphasises the importance of creating self-sustaining systems: "We did a study for Malaysia with respect to the hydrogen economy and that was very, very well received because we were able to simulate different conditions under which some of those models will work." This kind of forward-thinking analysis will be crucial as ASEAN countries navigate the complex landscape of hydrogen development.

Regional Cooperation and Grid Integration

Perhaps the biggest opportunity lies in connecting power grids across the region. An ASEAN-wide power grid could transform energy trading, allowing countries to share power when they have too much or too little. This would be especially useful for managing renewable energy sources that produce variable power.

Chaudhary pointed out that while the technology for grid integration exists, the main challenges are often non-technical. "It's more of a financing challenge," he noted. "Can the governments and regulators come together and work out a common mechanism?" This insight underscores the need for collaborative approaches in addressing the region's energy transition.

Europe has shown that this kind of grid connection is technically possible. The challenge for ASEAN is building the political will and spirit of cooperation needed to turn this ambitious idea into reality.

Working Together is Key

As Southeast Asia stands on the brink of an energy revolution, the way forward requires unprecedented teamwork. From sharing knowledge about new technologies like hydrogen to jointly investing in regional grid infrastructure, ASEAN's energy future will depend on its ability to work across borders and embrace a shared vision.

The coming years will bring challenges, but they also offer a unique chance to reimagine Southeast Asia's relationship with energy. By combining diverse strengths, embracing innovation, and fostering regional cooperation, ASEAN can lead the way in creating a sustainable energy model that supports economic growth while protecting the planet for future generations.

 

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