Petronas is stepping up investments in hydrogen as part of a global push to produce carbon-free energy. Trajectory for moving towards hydrogen is really picking up pace. Petronas, the world’s fourth-largest exporter of liquefied natural gas (LNG), this month announced its goal to become a net zero emitter of greenhouse gases by 2050 and also plans to increase its investments in renewable energy. Petronas is working through a memorandum of understanding and partnerships with technology players to ensure it has the right capital and expertise to pursue the hydrogen agenda.
It has already formulated its hydrogen strategy, but prices need to fall to the same level as LNG within the next two decades. Hydrogen has one of the most important roles in achieving carbon neutrality, and is especially important to decarbonize sectors which are hard to electrify. Economic trauma caused by the coronavirus pandemic has pushed energy companies to increase investment in renewables, hydrogen and other low carbon alternatives, but fossil fuels will be their dominant business for the foreseeable future.