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Asian Power:

Amid increasing viability of the technology, government support and investor interests in several markets, substantial growth opportunities abound for the green hydrogen sector in Asia Pacific over coming years, according to Fitch Solutions.

The report observed increasing traction in electrolyser technologies as a carbon-free alternative, which involves the use of electricity to produce hydrogen from water, primarily from non-hydro renewable generation sources.

Fitch estimates Asia’s electrolyser capacity to reach over 10GW over the coming decade, but this could still accelerate. “The resulting ‘green hydrogen’ is a highly adaptable energy carrier and can be used in a wide and increasing number of industry applications,” the report stated.

A key driver to its development is closely linked to the abundance of cheap low-carbon electricity. “We believe that the proliferation of renewable energy in the region, and its rapidly-falling costs, will push production costs of hydrogen down and drive adoption of the technology,” Fitch added.

According to a broad consensus, the cost of electrolysers could half and reach market parity with grey, fossil fuel based, hydrogen by 2030, making it a highly competitive energy alternative.

The growth of green hydrogen in the region is expected to be driven by Japan and Australia, but there is also increasing support from China, India, South Korea, Singapore and New Zealand. Most of these markets have included hydrogen into their policy agenda.

More: Growth opportunities arise for green hydrogen in Asia Pacific

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