Articles

Archive / Current Issue

20 Jan 2025

Hydrogen Market Databook 2025: Asia

Much like the rest of the world, many Asian countries are pursuing net-zero goals to decarbonise their economies. Asia has traditionally relied on coal and natural gas for power generation; however, capital-intensive investments are being made to boost the use of green hydrogen/ammonia in numerous countries’ energy mixes. Most of these initiatives include heavy investments in hydrogen production, infrastructure, power and fuelling.

The region could also be a hotbed for electrolyser development. According to a report by the High-Level Policy Commission on Getting Asia to Net-Zero, Asia’s electrolyser market could reach a market value of $180b by 2050. This market push is being led by China and India. By 2050, the value of China’s and India’s electrolyser market could reach $85b and $78b, respectively. Following China and India are Japan and South Korea, both with potential market values of $9b and $8b, respectively.

Active projects

The Asia-Pacific region accounts for 20% of active global hydrogen projects. At the time of publication, the Global Energy Infrastructure database was tracking nearly 280 active hydrogen projects in the region. Nearly 85% of Asia’s potential hydrogen production is through a green pathway, followed by blue (13%). Australia accounts for nearly half of Asia’s active hydrogen projects, followed by China and India (see Fig.1).

Regarding project status, nearly 90% of the region’s active hydrogen projects are in pre-construction phases:

Planning/proposed: 65%
Feasibility study: 16%
Pre-FEED/FEED: 7%
Under construction: 12%.

Although most of the region’s hydrogen projects are in the early stages, Asian nations have announced hundreds of billions of dollars in investment in the hydrogen value chain. These investments will help increase low- and zero-carbon hydrogen production and help decarbonise the region’s power, industrial, oil and chemical processing, and transport sectors.

Australia: The government in 2024 unveiled an updated hydrogen strategy report, the National Hydrogen Strategy 2024, which was an updated version of the country’s initial strategy, presented in 2019. The strategy includes joint actions that could propel the nation to be a leader in green hydrogen production. These include short-term initiatives such as advancing pilot projects, trials and demonstration projects; assessing supply chain infrastructure needs; and developing much-needed infrastructure for prospective hydrogen hubs in regions such as Kwinana, Gladstone, Pilbara and Whyalla, among several other locations.

The nation’s Regional Hydrogen Hub programme is part of Australia’s $40b investment towards transforming the country into a green energy generation powerhouse. Australia’s long-term goals include scaling up operations, production and infrastructure to become a major player in regional and global hydrogen value chains. Australia’s goal is to ramp up hydrogen production to 15mt/yr by 2050, with a stretch potential of 30mt/yr.

The nation’s hydrogen strategy is built on four objectives: supply; demand; community benefit; and trade, investment and partnerships. The first objective includes creating and developing a domestic clean hydrogen supply chain, creating regulations and legal frameworks, engaging the international market for offtake agreements, building a domestic hydrogen workforce and boosting innovation and research. This stage includes various tax incentives, funding mechanisms and initiatives to jumpstart the nation’s hydrogen value chain—e.g., the Hydrogen Production Tax Incentive, the Hydrogen Headstart programme, the Hydrogen Hub Initiative, and funding mechanisms through the Future Made in Australia Innovation Fund, the Australian Renewable Energy Agency, Clean Energy Finance Corp. and the National Reconstruction Fund, among others.

Since Australia was one of the first countries to announce a hydrogen roadmap, the attractiveness of its government incentives and subsidies in its first iteration were soon bypassed by more recent hydrogen legislation around the world—e.g., the US Inflation Reduction Act offered sizeable incentives and funding to the green hydrogen sector, spurring an influx of project announcements. In response, the Australian government revised its subsidy scheme to attract more investments to the nation’s green hydrogen sector.

According to the Australian Trade and Investment Commission, the Australian government introduced a new hydrogen production tax incentive worth more than $4.4b (A$6.7b) over 13 years, starting in 2027–28. The funding provides approximately a $1.32/kg incentive for green hydrogen produced between 2027–28 and 2039–40 for up to ten years. The Australian government will also offer the following additional funding:

$2.65b for the Hydrogen Headstart programme to facilitate large-scale hydrogen production projects. At the time of publication, six applicants were shortlisted for funding: BP Low-Carbon Australia (H2Kwinana); HIF Asia Pacific (HIF Tasmania eFuel facility); KEPCO Australia (Port of Newcastle Green Hydrogen Project); Origin Energy Future Fuels Pty. Ltd. (Hunter Vally Hydrogen Hub); Stanwell (Central Queensland Hydrogen Project); and Murchison Hydrogen Renewables (Murchison Hydrogen Renewables Project). All these applicants’ projects contain an electrolyser capacity of at least 50MW. Recipients of funding will be announced in late 2024.
Nearly $200m in funding from the Clean Energy Finance Corp. via the Advancing Hydrogen Fund.
More than $331m to support the development of domestic hydrogen hubs.
Nearly $2b to help finance renewables and low-emissions technologies. This incentive will run through the nearly $10b National Reconstruction Fund.

These incentives and subsidies are helping build the nation’s hydrogen ambitions. At the time of publication, the GEI database was tracking more than 130 active projects in Australia, representing more than $185b in capital investments by 2040.

China: Although China is the largest hydrogen producer globally, less than 0.1% is produced through renewable pathways. However, the nation is striving to boost green hydrogen production while mitigating production via fossil fuel routes, such as coal or natural gas.

Under the nation’s Medium and Long-Term Strategy for the Development of the Hydrogen Energy Industry (2021–35), China plans to produce 100,000–200,000t/yr of green hydrogen by 2025, establish a hydrogen energy value chain and increasing the number of hydrogen fuel-cell vehicles on the road to 50,000 within the same timeframe—a major portion of the nation’s hydrogen strategy focuses on decarbonising the transportation sector.

The country is also testing various methods to reduce emissions in its power sector, such as using ammonia and biomass for co-firing in coal and natural gas-fired power plants, as well as installing CCS technologies at these facilities. These goals will ultimately help China reach its ambitious net-zero targets by 2060.

At the time of publication, the GEI database was tracking nearly 40 active hydrogen projects in China, representing a capex of more than $150b (see Fig.2). Approximately 95% of these projects take a green pathway to hydrogen production. These projects will be complemented by other green hydrogen derivatives and infrastructure projects, such as hydrogen fuelling stations, pipelines, ammonia (China has numerous green ammonia projects totalling more than 4mt/yr, which will be needed as the country tries to mitigate coal-fired power generation) and port infrastructure, among others.

India: According to the Indian government, the nation plans on becoming energy independent by 2047 and achieve net-zero targets by 2070. To help reach domestic decarbonisation goals, the Indian government approved its National Green Hydrogen Mission in early 2022. By 2030, India hopes to have at least 5mt/yr of green hydrogen production capacity and 125GW of renewable power generation in operation. The installation of these plans will require more than $95b in capital investment.

To help jumpstart the nation’s green hydrogen ambitions, India’s government has announced two targeted investment mechanisms: electrolyser manufacturing and green hydrogen production. In mid-2023, India announced the goal of establishing 1,500MW of electrolyser capacity. To facilitate investment, India offered more than $540m in funding through the Strategic Interventions for Green Hydrogen Transition programme. The first round of submissions garnered 21 participants, totalling more than 3,300MW of electrolyser capacity. Out of the 21 submissions, eight were selected to receive subsidies, representing nearly $55m.

The same incentive scheme was launched for green hydrogen producers; however, nearly $1.6b in government incentives were up for grabs, representing approximately 450,000t/yr. This programme received 13 bids, totalling more than 551,000t/yr of green hydrogen production capacity. Winning bids received subsidies of $0.23–0.36/kg. This incentive plan was an effort to lower green hydrogen production costs, making Indian green hydrogen production costs competitive against other nations.

At the time of publication, India held the third-largest active hydrogen project market share in Asia. Most of these projects are through green pathways (see Fig.3) and include green hydrogen and derivative production capacity. These projects will help India decarbonise its economy to reach its net-zero goals. The nation has also planned to establish green hydrogen/ammonia ports. Three areas have been identified: Kandla, Paradip and Tuticorin. Once operational, these facilities will enable India to export green hydrogen, green ammonia and green methanol to various nations in Asia (e.g., Japan and Malaysia) and possibly Europe.

Other Asian nations

Over the next several decades, many Asian nations are investing in new renewables and hydrogen production capacity, infrastructure, etc. These investments will help Asian economies work towards net-zero goals. The following are additional notable trends and spending in the region:

Indonesia. The country’s Directorate General of New, Renewable Energy and Energy Conservation unveiled its National Hydrogen Strategy report in late 2023. The plan calls for a transition from low-carbon hydrogen to green hydrogen, with the goal of green hydrogen replacing fossil fuels use in all industrial sectors of the economy. At present, Indonesia has announced more than 3mt/yr of low-carbon hydrogen projects, totalling more than $35b in capital investment. More than 2mt/yr is through green pathways, with approximately 1.15mt/yr through a blue pathway. The country’s goal is to produce nearly 10mt/yr of green hydrogen by 2060. Some of the nation’s notable projects include:

° Green hydrogen fuelling stations to help decarbonise long-haul vehicles.

° Danish nuclear firm Copenhagen Atomics’ $4b, 1GW nuclear power plant to produce clean hydrogen and ammonia—other JVs are also exploring the use of ammonia co-firing in nuclear power plants.

° Pertamina is working towards producing 7,000t/yr of green hydrogen by 2029.

° Numerous other green and blue hydrogen projects are under development, including the $1b Garuda Hydrogen Hijau (GH2) project, the $500m Arun hydrogen development, and BP and NOC Pertamina’s plans to explore ways to produce blue ammonia at the Tangguh LNG plant, among others.

These projects and strategies will help Indonesia reach its net-zero goals by 2060.

Japan: Japan envisions becoming a “hydrogen society”. In mid-2023, the country revised its national hydrogen strategy, expanding hydrogen consumption targets to 3mt/yr by 2030, increasing to 12mt/yr by 2040 and up to 20mt/yr by 2050. The goal is for green hydrogen to be used in numerous industries, including power generation, transportation, residential and commercial buildings, industrial complexes, steelmaking, shipping and aviation (Japan’s Ministry of Economy, Trade and Industry announced plans to invest $26b in a public-private partnership to develop domestic hydrogen-powered passenger jets), and the chemical industry, among others.

To help initiate these projects, Japan is offering slightly more than $20b in subsidies to clean hydrogen suppliers. The contracts-for-difference–style subsidy programme will help clean hydrogen suppliers and importers make their projects more economical and competitive. Subsidy awards are expected to be announced by 2025.

South Korea. South Korea announced ambitious hydrogen plans in its Hydrogen Economy Roadmap of Korea in 2019. Although the nation’s hydrogen ecosystem is based on grey production routes, South Korea aims to boost the use of green hydrogen—producing more than 5.2mt/yr by 2040—in various portions of its economy, as well as increase the use of renewable energy in power generation to 30–35% by 2040. The report forecasts a significant increase in the number of hydrogen fuel-cell vehicles, increasing from 18,000 in 2018 to approximately 6.2m by 2040. The passenger hydrogen fuel-cell market represents 95% market share, with the remaining balance consisting of buses, taxis and trucks.

To reach these goals, South Korea’s hydrogen plan is built on a three-phase approach: Preparation, expansion and leadership. Within each phase, production and use of green hydrogen increases, reaching, in effect, a hydrogen society by 2040—i.e., a CO₂-free supply and demand system. The nation has numerous projects under development to reach its domestic hydrogen goals. These include the nation’s first ammonia import terminal (ammonia will be used in co-firing for power generation), a pilot project to test green hydrogen in nuclear energy production, utilising low-/zero-carbon hydrogen in the nation’s refining and chemical operations, and several green/blue hydrogen production projects by domestic companies such as Hyundai Oilbank, Kogas, LG Chem, SK Energy and others.

Additional notable low-/zero-carbon hydrogen/ammonia/methanol projects in Asia are detailed in Fig.4. These investments will help the region meet net-zero goals and establish low-carbon economies and value chains.

FIG.4: NOTABLE LOW-/ZERO-CARBON H2 AND DERIVATIVE PROJECTS/INITIATIVES IN ASIA

Country	Project/initiative	Companies	Scope
Malaysia	H2ornbill	Eneos, Sumitomo	The plant will produce 90,000t/yr of carbon-free H2 that will be converted into methylcyclohexane. At the time of this publication, the project was in the FEED stage.
Malaysia	H2biscus	Lotte Chemical, Posco, Samsung, SEDC Energy	The complex will produce 150,000t/yr of green H2 that will be converted into 850,000t/yr of green ammonia. Commercial operations are scheduled to begin in early 2028.
Malaysia	HySustain	AGV Energy	The 100,000t/yr green H2 plant will be rolled out in six stages from 2024–30. The project’s goal is to supply clean H2 for the transportation sectors in Malaysia and other southeast Asian markets.
Mongolia	Gobi H2 Green Hydrogen project	Elixir Energy, SB Energy Corp.	Elixir plans to build a 10MW electrolyser pilot plant to produce green H2 from renewable feedstock—the plant will receive energy from SB Energy’s wind farm.
New Zealand	South Green Hydrogen project	Meridian, Woodside Energy	The proposed project, if completed, will produce 500,000t/yr of green ammonia which will be exported to demand markets in Asia and possibly Europe.
New Zealand	Kapuni green H2 project	Hiringa	The plant will use renewable power from a 24MW wind farm to feed an electrolyser for industrial-scale green H2 production. The green H2 will provide feedstock to the company’s Ballance plant, as well as provide a carbon-free fuel for the nation’s transportation sector—Hiringa plans to build a large-scale H2 fueling network within New Zealand.
Philippines	HDF Energy	Renewable H2 power plants	HDF plans to invest approximately $1.5b to install 15 H2 power plants in the country, helping to decarbonise the nation’s power sector.
Singapore	H2 power plant builds	Various	By 2030, Singapore is expected to have nine H2-compatable power plants in operation. These projects will produce nearly 4GW of power.
Singapore	Jurong Island ammonia and bunkering port	Energy Market Authority, Maritime and Port Authority	The project aims to develop low- and zero-carbon ammonia import facilities. The ammonia will be used for low-/zero-carbon power generation and as a marine bunker fuel.
Sri Lanka	National Hydrogen Roadmap	Government of Sri Lanka	Sri Lanka launched its National Hydrogen Roadmap in September 2023. The country’s goal is to promote its vast wind and solar power to attract $1b in capital investments by 2030 for the production and utilisation of green H2. Sri Lanka plans to use green H2 in various sectors of its economy, such as transportation, aviation, shipping, manufacturing, agriculture, buildings, power generation, etc.
Thailand	Thai green H2 plant	PTT, ACWA Power	The two firms plan to invest $7b to build a 225,000t/yr green H2 plant, equivalent to 1.2mt/yr of green ammonia capacity.
Thailand	Green steel production	IBCLNG, Beijing Mingyang Hydrogen Technology	The JV will develop a 25MW electrolyser to produce green H2 which will be used to decarbonise a portion of Thailand’s steelmaking industry.
Thailand	Green methanol production plant	PTT	PTT is investing $85m to build a 100t/d green methanol plant. The facility will use captured CO2 as feedstock to produce methanol. The plant can scale up to 2mt/yr, if needed.
Vietnam	Vietnam’s Hydrogen Energy Development Strategy to 2030 and Vision to 2050	Government of Vietnam	The country’s H2 strategy is based upon Vietnam’s National Energy Development Master Plan. The country’s goals are to produce 100,000–500,000t/yr of H2 (green and blue, with the inclusion of CCS/CCUS) by 2030, increasing to 10–20mt/yr by 2050. H2 will be used in various facets of industry, including power generation, transportation, chemical and fertiliser production, refining and petrochemical operations, and steel and cement production, among others.
Vietnam	Tra Vinh Green H2/ammonia manufacturing plant	TGS	Located in the Dong Hai Commune, Tra Vinh province, the plant will use a 240-MW electrolyser to produce 575t/d of green H2. Operations are schedule to begin in late 2026.
Vietnam	Quang Tri renewables facility and green H2 plant	Huadian Group, Minh Quang	The $2.4b facility, to be in the Quang Tri province, will harness power from a 1.2GW wind farm and an 800MW solar energy farm to produce 60,000t/yr of green H2.