The Research Institute for Democracy, Society, and Emerging Technology (DSET) held the National Strategic Summit on Supply Chain Resilience on June 14, 2025, in Taipei. The Energy Supply Chain Resilience Dialogue gathered experts from Taiwan, Japan, Australia, and the U.S. to examine the future of energy in the face of climate change, rising demand, and geopolitical tensions.
Tsaiying Lu, Director of the Energy Security and Climate Resilience research program at DSET, opened by emphasizing Taiwan’s ongoing LNG needs and the growing role of hydrogen in achieving net-zero goals by 2050. She elaborated that, while Taiwan has set long-term net-zero targets aiming to reduce LNG’s share in electricity generation to 20%, its reliance on liquefied natural gas (LNG) is expected to persist through 2050. In absolute terms, LNG demand by 2050 will likely remain comparable to current levels, with peak consumption projected around 2035. While Taiwan seeks to reduce its LNG dependency, its situation reflects broader regional trends: Asian countries such as China, Japan, South Korea, and India are also expected to maintain a high level of LNG imports. Meanwhile, the United States is emerging as a dominant LNG exporter to the Asia-Pacific under its energy policy.
To enhance supply chain resilience, Taiwan has adopted a diversifying procurement strategy. As sourcing primarily from Australia, followed by Qatar and the U.S., Taiwan utilizes different supply contracts to ensure secure LNG imports and to decrease the risks. While the cost remains a factor, security considerations increasingly shape procurement decisions, prompting investments in closer and more reliable sources such as Alaska. Looking forward, hydrogen energy will play an increasingly important role in Taiwan’s energy transition, expected to account for 9–12% of power generation by 2050. However, 75% of green hydrogen requires imports, posing significant logistical challenges. Taiwan is investing in reversible solid oxide cell (rSOC) technology. These systems can alternate between generating power (SOFC) and producing hydrogen (SOEC), offering dual utility for both electricity supply and decarbonization of heavy industry. This technology also holds promise for supporting stable, on-site power for AI infrastructure in southern regions, where transmission constraints are less severe. Therefore, enhancing LNG resilience and accelerating hydrogen infrastructure are dual imperatives for Taiwan’s long-term energy security and decarbonization strategy.
Harry Krejsa, the Director of Studies of the Carnegie Mellon Institute for Strategy and Technology, emphasized the criticality of LNG and hydrogen technologies and how they hold symbolic importance to the technical and geopolitical challenges facing the global energy system. Despite the overall abundance of global energy resources, converting them into stable and secure electricity supplies presents significant obstacles, particularly due to supply chain dependencies. For instance, natural gas turbines, which are essential for LNG-based power generation, currently require a waiting period of three to five years. Alternatives such as fuel cells and electrolyzers depend on rare materials that are largely controlled by Chinese supply chains. As the United States expands its electricity grid to meet the growing demands of artificial intelligence and advanced technologies, the risks of cyberattacks and logistical disruption are becoming more severe. He also warned that China might embed digital threats within critical infrastructure, posing a serious challenge in the event of a future geopolitical confrontation, especially regarding Taiwan.
To enhance resilience, Krejsa called for greater visibility across supply chains and efforts to develop trustworthy technologies through domestic production or cooperation with allies. He also highlighted the need for closer collaboration between energy planners and national security experts, who often operate separately. Taiwan, as the pioneer countering these threats, can serve as a valuable example and partner in developing resilient solutions. As countries move toward a more electrified future, ensuring that energy systems such as LNG, nuclear, solar, and geothermal are secure, reliable, and adaptable to crisis scenarios will be essential for long-term strategic stability.
Daisuke Harada, the Director General of the Department of Research & Analysis, Energy Business Unit of JOGMEC, emphasized the central role of energy security in safeguarding national interests. JOGMEC, as the major government-backed agency in Japan tasked with promoting upstream energy development, holds a portfolio that includes oil, gas, coal, metals, hydrogen, carbon capture and storage, offshore wind, and geothermal, reflecting Japan’s comprehensive energy needs as the world’s fifth-largest energy consumer. He outlined 3 major shifts in global energy over the past 25 years: the shale revolution, the Fukushima nuclear disaster, and the global decarbonization trend. The shale revolution was driven largely by rising oil prices, enabling the United States to become a leading energy exporter. The Fukushima disaster, on the other hand, triggered widespread reevaluation of nuclear energy policies, leading countries like Germany and Taiwan to exit nuclear energy. Japan, however, is now reintroducing nuclear energy to support its decarbonization targets. The decarbonization push, especially since the COVID-19 pandemic, has gained momentum globally. Stimulus funding in the European Union has accelerated investments in clean energy. While Harada affirmed the importance of decarbonization to combat climate change, he also warned of potential shifts in policy depending on geopolitical and economic conditions. Hydrogen, while a potential diversification option, remains expensive and uncertain as a mainstream energy source.
Harada also stressed the strategic dimension of energy security amid the Russia-Ukraine war. He underscored the need for Asian democracies like Japan, Taiwan, and South Korea to align with G7 sanctions against Russia, not only as a stance against aggression but to build trust with Western partners in case of future regional crises involving China. Finally, he called for exploring multilateral cooperation in energy procurement and technology, though he acknowledged competition in markets like LNG may limit direct collaboration. Looking ahead, Japan aims to balance decarbonization with ensuring an adequate energy supply, with LNG likely to remain a critical component in the transition toward a more secure and diversified energy future.
Ian Stachwell, the Senior Fellow of the Australian Strategic Policy Institute (ASPI), pointed to Australia’s position as a key energy supplier, with significant potential in natural gas and hydrogen. He emphasized Australia’s responsibility to ensure secure and sustainable supply chains for its regional partners, particularly in energy, minerals, and food. As one of the world’s largest and most diversified producers of energy and critical minerals, Australia plays a key role in Asia’s supply stability. Australia benefits from three major gas provinces located across its north, covering conventional offshore gas, coal seam gas on the east coast, and emerging shale gas in the Northern Territory. The geological diversity enhances resilience. Shale gas development, especially in the Beetaloo Basin, is still in early stages but has the potential to expand LNG exports if reserves prove viable. However, the threat of LNG shipping blockades in geopolitical crises, cyclone risks in northern Australia, and historically slow permitting processes all threaten supply chain resilience, although reforms are accelerating. On the East Coast, gas shortages are forecasted to become acute by 2026–2027, potentially impacting power generation and manufacturing. Governments are working to resolve these issues while preserving long-term LNG contracts, limiting domestic diversion to spot market purchases only.
Australia is also a major producer of critical minerals, with dozens of dedicated mines and processing facilities. The government is establishing a strategic reserve to counter global market manipulation and reinforce its tech and energy supply chains. Hydrogen development is a national priority, though cost competitiveness with LNG remains a major hurdle. Satchwell acknowledged the technical and economic challenges of hydrogen transport and energy density. Nonetheless, cooperation with Japan and others, such as the Hydrogen Energy Supply Chain pilot project using brown hydrogen, has demonstrated early feasibility, including with specialized shipping technologies. Australia sees hydrogen as a long-term diversification path and remains committed to regional collaboration.
President Yao-Ting Wang of Taiwan Power Company (TPC) outlined Taiwan’s transition from coal-fired to gas-fired power generation, highlighting that gas now surpasses coal in total output. Gas-fired plants not only reduce CO₂ emissions by 50% per kilowatt-hour but also provide better grid flexibility due to faster ramping rates, making them suitable for integrating renewable energy. TPC currently operates six gas-fired plants totaling 24.7 GW of capacity and plans to expand this capacity further. LNG supply is sourced from CPC, Taiwan’s state-owned oil company. To reduce market risk, TPC and CPC will procure LNG separately going forward. Taiwan currently has three operational LNG terminals and plans to construct four more, two of which will be operated by TPC.
In response to net-zero goals, TPC is retrofitting existing gas units to co-fire with hydrogen. It successfully completed trials of 8–10% hydrogen co-combustion and signed MOUs with major global firms—such as GE, Siemens, MHI, IHI, and Sumitomo—to develop hydrogen and ammonia co-firing technologies. Turbines in plants like Tongxiao, Datan, and Shinda are being upgraded to be hydrogen-ready, and CCS compatibility is being considered for future units. TPC is also collaborating with Academia Sinica on a methane pyrolysis project to produce clean hydrogen domestically. A microturbine running on 10% hydrogen has been demonstrated, and a 5 MW demo system is targeted for 2029. Hydrogen is seen as a seasonal energy storage solution. With offshore wind projected to reach 13.1 GW by 2030 and up to 55 GW by 2050, surplus renewable power will be stored as hydrogen and reconverted to electricity to balance the grid. A pilot-scale hydrogen production system is planned for deployment in southern Taiwan by 2027 to test this storage concept.
Lastly, Charles Tsai, the Head of Hydrogen Energy Business Division of Delta Electronics Inc., introduced Delta as a global leader in power supply and thermal management solutions, serving key clients such as Microsoft, AWS, and Google. He emphasized that Delta has naturally led the company to invest in hydrogen technology as part of its commitment to climate action and industrial decarbonization. To contribute to the net-zero transition, Delta has developed two core hydrogen technologies: Solid Oxide Electrolysis Cells (SOEC) for green hydrogen production, and Solid Oxide Fuel Cells (SOFC) for power generation. SOFC systems are highly efficient (up to 85% when combining heat and power applications), do not require water cooling, and are ideal for microgrid resilience. They support a wide range of fuels, including hydrogen, natural gas, and ammonia, making them a flexible and low-carbon energy source.
Hydrogen, Tsai explained, plays a critical role in hard-to-electrify sectors like steelmaking, chemicals, long-haul transportation (including aviation and long-distance shipping), and grid stabilization. Delta is not a research institute but a solution-oriented company, and it is building a Taiwan-based supply chain for hydrogen technologies. This includes partnering with local universities and research institutes to localize key materials, manufacturing equipment, and system integration. He stressed that cost is the major barrier to hydrogen adoption. To address this, Delta is committed to reducing the cost of both hydrogen equipment and renewable energy inputs. The company’s vision is to become a critical contributor to affordable hydrogen energy solutions, not only providing advanced technology but also helping customers reduce their levelized cost of energy (LCOE), hydrogen (LCOH), and ammonia (LCOA). Delta sees hydrogen as a long-term, scalable solution for industrial decarbonization and grid resilience.
