Asia Pacific Green Hydrogen Market: Current Analysis and Forecast (2022-2032)

The Asia Pacific region is currently the fastest-growing economy, seeking to reduce its carbon footprint and transition towards a low-carbon future. Many countries have set targets for deploying green hydrogen and are further working towards implementing favorable policies and incentives to drive investment in the industry. Aside from the massive investments being made by Asian states, the development of green hydrogen has emerged as a priority for multilateral institutions and private funders. In Asia, the future energy outlook relies greatly on hydrogen, and significant policy and financial support from governments across the region, coupled with a wave of private investment, has allowed for the rapid expansion of promising clean hydrogen projects across the continent. However, Green hydrogen projects in Asia and Australia are stalling because the developers have opted to export green ammonia rather than focus on meeting domestic H2 needs. To export green hydrogen credible off-takers and longer contracts coupled with advanced infrastructure are required to scale up the technology which is slowing down its market growth.

Based on the electrolyzer, the green hydrogen market is divided into three segments based on the electrolyzer technology used - proton exchange membranes, alkaline electrolyzers, and others. Amongst these, alkaline electrolyzers have the highest market share as it is the most common and mature technology used for green hydrogen production. Additionally, alkaline electrolyzers are cost-effective and have a long operational life.

Based on source, the green hydrogen market is divided into three categories based on source: solar energy, wind energy, and others. Solar energy contributes significantly to the green hydrogen production process, and its production is considered a promising way to use solar energy and combat climate change caused by the burning of fossil fuels.

Based on end-users, the green hydrogen market is categorized into refining, ammonia, and others. The refining segment acquired the largest share as the refinery is the large industrial consumer of hydrogen, most of which is currently supplied by fossil fuels. The rising need to meet the net zero emissions targets has escalated the demand for green hydrogen in industries to reduce carbon emissions. Moreover, the government provides incentives to use green hydrogen in refineries, and exempting electrolyzers from grid fees, taxes, and levies is further accelerating the market share of refineries.

For a better understanding of the market adoption of the green hydrogen industry, the market is analyzed based on its Asia Pacific presence in countries such as (China, India, Japan, Australia, and the Rest of Asia Pacific). China is leading the Asia Pacific green hydrogen production and consumption market due to its large market size and developed industrial infrastructure. These factors facilitate rapid technological advancements and offer potential for economies of scale, which can significantly influence the global hydrogen market landscape. In March 2022, China released its Medium and Long-Term Strategy for the Development of the Hydrogen Energy Industry, leading to significant developments in the country's hydrogen space. However, the National Plan's targets for renewable hydrogen production may seem conservative, as they only represent 0.3 to 0.6 percent of the 33 million tons of fossil-based hydrogen consumed in China in 2020. Therefore, when viewed together, the provincial plans may provide a more accurate picture of China's hydrogen industry over the coming decades than the National Plan.

Some major players operating in the market include Enapter, Toshiba, Air Liquide, Nel Hydrogen A/S., Toyota, Hyundai, Yara International, CWP Global, Origin Energy, and CSIRO.