Asia is home to five of the ten largest carbon-emitting nations (China, India, Indonesia, Japan and South Korea), according to EU data. Many Asian countries have instituted pathways and programmes to reach their net-zero goals by the mid-century, most of which include heavy investments in hydrogen production, infrastructure and fuelling.

The Asia-Pacific region accounts for 20% of active global hydrogen projects. The region is investing more than $350b in new hydrogen capacity and infrastructure over the next several years. At the time of publication, the GEI database was tracking nearly 300 active hydrogen projects in the region. Australia accounts for nearly half of these, followed by China and India. A breakdown of active hydrogen project market share in Asia is shown in Fig.1.

Although Asia-Pacific has announced many new hydrogen projects over the past few years, few have reached FID. More than 90% of the region’s hydrogen projects are in preconstruction phases, such as feasibility studies, pre-FEED and FEED. Nevertheless, the region has allocated a substantial amount of capital to increase hydrogen production and infrastructure and boost its market share in electricity generation, transport, mining and shipping as well as within industrial processing operations. 

Australia

The island nation intends to become a major green hydrogen/ammonia production hub for Asia-Pacific. The country’s National Hydrogen Strategy, written in 2019, details nearly 60 joint actions that could propel it into becoming a leader in green hydrogen production. These include short-term initiatives such as advancing pilot, trial 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 other locations. Australia’s long-term goals (i.e., from 2025) include scaling up operations, production and infrastructure to become a major player in regional and global hydrogen value chains.

20% – Asia-Pacific’s share of active hydrogen projects

However, since the country’s hydrogen strategy was developed several years ago, the government is revising aspects to attract more investment. This announcement came in light of the passage of the US Inflation Reduction Act (IRA) and other nations around the world offering attractive tax breaks and subsidies to invest in renewables, green hydrogen production capacity and infrastructure. In its annual budget, the Australian government plans to invest A$2b ($1.4b) to scale up the domestic renewable hydrogen industry. These investments will help it reach 1GW of electrolyser capacity by 2030.

Despite stiff competition from other countries trying to attract investment, Australia continues to be the leader in project development within the Asia-Pacific region, accounting for more than $185b in capital investments to 2035. These investments include the following major projects and hubs:

• The nearly $70b Western Green Energy Hub.
• The $36b Asian Renewable Energy Hub.
• The $15b Desert Bloom project.
• Australian energy company Fortescue Future Industries’ 10GW North Queensland Super Hub.
• The $10b CQ-H2 project.
• Australian solar PV developer Sun Brilliance’s Karrath and Murchison Hydrogen Renewables’ projects (each costing approximately $7b).
• The Bell Bay Powerfuels $1.2b green methanol/hydrogen plant in Tasmania, which is targeting 200,000t/yr of green methanol in Phase 1, increasing to 300,000t/yr in Phase 2. The methanol will be used to help decarbonise the marine shipping industry.
• Domestic developer Hexagon’s 1.2mt/yr low-carbon ammonia plant in Western Australia (WA).
• Canada-based Amp Energy’s 5GW green hydrogen/ammonia complex at Iron Road’s Central Eyre Iron Project industrial hub in South Australia.
• The $20b, 1.8mt/yr Han-Ho hydrogen hub.
• The multibillion-dollar Port of Hastings liquefied hydrogen facility (Phase 1 production will be 40,000t/yr, with full ramp up to 225,000t/yr), which will liquefy hydrogen from coal.
• Australian gas distributor Atco’s ScaleH2 project in Illwara, New South Wales, which is targeting the development of a 1GW electrolyser project and 800,000t/yr green ammonia facility.
• Australian hydrogen developer Edify Energy’s 1GW green hydrogen production facility in Townsville, Queensland. This will produce green hydrogen for industrial and transportation applications and for export.
• Australian firm Allied Methanol’s $800m integrated methanol and blue ammonia plant in Darwin, in the Northern Territory (NT), which will produce 1,350t/d of methanol and 415t/d of blue ammonia once operational in 2026.
• Australian miner FMG’s two planned green hydrogen plants in WA to provide power to its iron ore mining operations.
• South Korean steelmaker POSCO’s planned investment of c.$28b in hydrogen manufacturing in Australia by 2040, which is intended to produce 1mt/yr of green hydrogen to help decarbonise steelmaking.
• Australian energy company Woodside’s three-phase H2Perth facility in Kwinana, WA, which aims to produce up to 3.25mt/yr of anhydrous liquid ammonia from hydrogen, and its Bell Bay, Tasmania, project that will install 1.7GW of electrolyser capacity to produce hydrogen that will be converted into 200,000t/yr of ammonia.
• The Whyalla hydrogen hub in South Australia, which will help decarbonise manufacturing and mining operations in the state.
• Australian renewables developer Progressive Green Solutions 1mt/yr green ammonia plant at the Narngulu Industrial Estate near Geraldton, WA, being developed with South Korea’s Samsung C&T and KOMIPO.
• Perth-headquartered Allied Green Ammonia’s 2,500t/d green ammonia project in Gove, NT. The facility is scheduled to begin operations in Q4 2028 or Q1 2029.

These projects will complement new hydrogen infrastructure under development in the country, including hydrogen fuelling stations, blending with natural gas for electricity generation and for use to decarbonise domestic heavy industrial industries. The country is also studying the use of green methanol as bunker fuel at the Port of Melbourne—Australia’s largest port.

China

In 2022, China unveiled its hydrogen strategy to 2035. The country’s goals are to increase domestic green hydrogen production to 100,000–200,000t/yr by the end date, place 50,000 hydrogen-fuelled vehicles on the road within that timeframe and significantly build out hydrogen refuelling centres within the country. China is the world's largest hydrogen producer, but most of its production is through coal gasification (i.e., grey hydrogen), which is both energy and emissions intensive. China’s hydrogen production is also not enough to satisfy domestic demand, meaning the nation is set to significantly increase imports through the rest of this decade. China’s hydrogen imports are forecast to reach 13mt/yr in 2030, according to Deloitte.

China has ambitions to increase green hydrogenproduction significantly as the cost of production falls. Industry body the China Hydrogen Alliance forecasts Chinese hydrogenproduction to reach 35mt/yr by 2030 and approximately 60mt/yr by 2050.

To meet these ambitious goals, the nation is significantly increasing capital investments in green hydrogen production projects. The GEI database is tracking more than $150b in capital investments in China, with nearly 30 green hydrogen projects under development. These projects, along with additional natural gas imports, will help China reduce coal-fired power generation, mitigate emissions and increase green ammonia production. They will also be complemented by additional hydrogen infrastructure—such as NOC Sinopec’s west-to-east green hydrogen transmission pipeline from Inner Mongolia to cities in eastern China—and several partnerships to develop hydrogen refuelling stations in major Chinese cities.

India

The government of India has announced plans to become energy independent by 2047 and achieve net-zero emissions by 2070. To help reach these goals, India has unveiled its National Green Hydrogen Mission. Approved by the country’s cabinet in January 2022, India plans by 2030 to achieve a green hydrogen production capacity of 5mt/yr and have 125GW of renewable energy capacity at a cost of nearly $98b in capital investments.

India’s government has also announced more than $2b in incentives to jumpstart green hydrogenproduction projects. This move is an effort to reduce the cost of green hydrogenproduction in India, which is around INR300–400/kg ($3.66–4.89/kg), and attract additional investments domestically. The country has also extended its transmission fee waiver for renewable energy to green hydrogenplants commissioned before January 2031. This incentive could reduce the cost of interstate transmission charges, reducing green hydrogenproduction costs by INR1–2 ($0.01–0.02) per unit of power transmitted.

Lastly, India’s government is also developing a carbon credit trading scheme. Essentially, India would allow countries to use green hydrogen-linked carbon credits in exchange for investments and purchase deals. This type of credit trade has the potential to boost green hydrogen trade globally.

India holds the third-largest market share in active hydrogen projects in the region, with most of its domestic projects under development via green hydrogen pathways. These facilities will provide zero-carbon hydrogen feedstock for India’s hydrocarbon processing sector and hard-to-abate industries such as steel and cement manufacturing, and they will also enable the country to replace ammonia imports for fertiliser production with domestic, green alternatives by 2035. The country has also planned to increase green ammonia production capacity to nearly 6mt/yr and has identified three ports—Kandla, Paradip and Tuticorin—to serve as hydrogen export hubs.

Japan

At the time of this publication, the government of Japan was revising the nation’s hydrogen strategy. The country’s goals are to increase hydrogen supplies by 1mt/yr to 3mt/yr by 2030, 12mt/yr by 2040 and up to 20mt/yr by 2050. To accomplish this, Japan plans nearly $110b of public and private investment to create domestic hydrogen and green ammonia value chains. The additional hydrogen and green ammonia production/imports will enable the country to slash emissions from heavy processing industries and power generation. For example, Jera, Japan’s largest power producer, is studying the use of ammonia as a fuel to co-fire with coal at its power plants; Japanese oil firm Inpex and its project partners started construction in mid-2023 on a new blue hydrogen/ammonia production plant that will be the country’s first integrated blue ammonia value chain; and the country’s steelmaking industry is conducting research on using green hydrogen to power electric furnaces to make high-quality steel.

$350 – Value of Asia-Pacific hydrogen investments

Japan’s Agency for Natural Resources and Energy has announced a two-pronged approach to speeding the development of clean hydrogen/ammonia value chains domestically. The first strategy includes subsidies for clean hydrogen and ammonia producers (i.e., green and blue hydrogen) to help make hydrogen production cost-competitive against coal and LNG. The second prong includes a support scheme to build industrial clusters for the use of clean hydrogen/ammonia.

Other Asian nations

Many other Asian countries are investing in their domestic hydrogen value chains. These projects include the production of both blue and green hydrogen/ammonia production routes; hydrogen infrastructure buildouts; utilising hydrogen and/or ammonia to decarbonise heavy industry, transportation and shipping; and power generation.

Indonesia has announced plans to become carbon-neutral by 2060. To reach this goal, the country plans to significantly boost the use of renewables in its energy mix, with a goal to have 23% of power generated by renewables by the mid-2020s. The additional solar and wind capacity will provide the country with both renewable power generation capabilities and feedstock for electrolysers to produce green hydrogen. The additional hydrogen and clean ammonia will help Indonesia decarbonise its power sector—several generating firms are now testing co-firing of hydrogen and ammonia in their natural gas and coal-fired power plants—and create a regional ammonia production/export hub. Indonesia’s production of green, blue and grey ammonia will reach nearly 1mt/yr, 2.15mt/yr and 7mt/yr, respectively by 2030, according to fertiliser producer Pupuk. Indonesia is targeting nearly 3.5mt/yr of blue ammonia production by 2040.

Although South Korea’s hydrogen ecosystem is based on grey hydrogen production routes, the government has created a pathway to increase green/blue hydrogen production to help decarbonise the economy. According to South Korea’s Ministry of Trade, Industry and Energy, the country has three major growth strategies to build out a domestic clean hydrogen supply chain: “scale-up”, “build-up” and “level-up”. The following is a breakdown of each segment of this programme (known as 3UP) according to South Korea’s Ministry of Economy, Trade and Industry (METI):

• Scale-up: This strategy includes expanding clean hydrogen demand domestically for power generation and transportation, increasing the deployment of hydrogen-fuelled heavy-transport vehicles—METI has announced an action plan to produce 30,000 hydrogen-fuelled commercial vehicles by 2030—and developing large-scale hydrogen production bases outside South Korea.
• Build-up: This strategy focuses on developing a legal framework and building an installed asset base for hydrogen distribution infrastructure (e.g., hydrogen fuelling stations, pipelines and hydrogen/ammonia receiving terminals). For example, one of METI’s action plans is to build 70 liquid hydrogen fuelling stations by 2030. The “build-up” plan also includes opening a hydrogen bidding market, hydrogen business laws and a clean hydrogen certification system. South Korea aims to have green hydrogen comprise approximately 93% of domestic hydrogen consumption by 2050 and more than 7% of the country’s total energy mix by the mid-2030s.
• Level-up: This programme focuses on advancing and optimising technical innovation in the country’s hydrogen value chain and lifecycle from production to distribution.

Additional low-/zero-carbon hydrogen/ammonia/methanol projects in Asia are listed in Fig.2. These investments will help the region meet net-zero goals and establish a low-carbon economy and hydrogen value chains.

The next four parts of this six-part report will cover hydrogen in the Middle East; Africa; Europe, Russia & the CIS; and the Americas. Click here for the introduction to the report.

FIG.2: Notable low-/zero-carbon hydrogen/ammonia and methanol projects/initiatives in Asia

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Author: Lee Nichols