Asia Hydrogen Market Report - 2024

Asia Hydrogen Market Report - 2024

Summary

Asia faces a challenge for its present but more importantly its future. Rapid industrialisation, urbanisation and an increase in power demand have resulted in overdependence on fossil fuels. The region is looking to hydrogen due to its versatility and potential to decarbonise its hard-to-abate industries, with the goal of reducing its use of fossil fuels and help in its energy transition to a more sustainable future.

Asia has outlined the importance of low-carbon hydrogen in the energy transition due to its versatility in decarbonising a wide range of end-use industries including power, transportation and other hard-to-abate sectors such as iron and steel and ammonia. It is pushing to develop low-carbon hydrogen production capacity and regional demand, as not only a pathway to a more sustainable future but a means to increase energy independence.

Transport remains the dominant end-use industry for low-carbon hydrogen in Asia, with nearly 3.2mtpa of capacity expected to be allocated based on current project announcements. Nations such as China and Japan are implementing policies and production targets to continue the development of clean technologies for the transportation industry.

The second largest end-use sector for low-carbon hydrogen in Asia is power generation. Both Japan and South Korea have implemented targets for hydrogen use in power generation, with the former targeting 800ktpa of hydrogen for power generation by 2030 and the latter aiming to supply 15GW of hydrogen fuel cell capacity for power generation by 2040.

There is also a focus on synthetic fuels and ammonia as an end-use industry, as Asian nations prioritise decarbonising hard-to-abate sectors.

More and more Asian nations are implementing national hydrogen policies and supporting funding initiatives to accelerate domestic and regional low-carbon hydrogen development and foster growth in regional market demand. Furthermore, hydrogen agreements and partnerships occurring in the region, particularly in Japan, are promoting cooperation to accelerate the development of hydrogen. The agreements set a framework for establishing hydrogen-based carrier supply chain studies, joint research and development and low-carbon hydrogen knowledge sharing.

Key Highlights

• Asia currently has 130ktpa of low-carbon hydrogen capacity, however, its share of active capacity is set to increase as it also accounts for 12% of global feasibility and post-feasibility projects.
• Transport is the largest end-use industry for low-carbon hydrogen in Asia, with nearly 3.2mtpa of capacity expected to be allocated based on current project announcements.
• The second largest end-use sector is power, with nearly 1.3mtpa of capacity allocated. Feasibility projects continue to contribute to most of the region's capacity, with the 6mpta accounting for 58% of its total capacity. 5 Asian nations have set hydrogen production targets with targets totalling over 10mtpa by 2030. China, India and Japan have all set electrolyser targets for 2030 which total 110GW of capacity.

• Asia low-carbon hydrogen capacity outlook, Key regional projects, Key companies operating in Asia's hydrogen market, Hydrogen end-use sectors, Hydrogen policy in Asia, Deal activity related to hydrogen in Asia, Company filings analysis of Asian headquartered companies

• Identify the market trends within the region and key players in hydrogen technologies.
• Develop market insight of current, in development and announced capacity and latest trends of the sector.
• Understand the region's different scenarios for 2030 based on the likeliness of the projects.
• Look at the demand in key application areas for the country.
• Facilitate the understanding on how and where the market is growing as it is rapidly scaling up to position as one of the main topics of the international and national agenda.