Green Hydrogen: Decarbonising Asia’s Industrial Titans
Asia’s outstanding transformation over the contemporary years into a global production hub has not only fuelled economic growth but also uplifted millions out of poverty. However, this triumph has come with a significant increase in the region’s emissions footprint, necessitating a prompt shift to green technologies and strategies across Asia’s industries.
A newly released report, “Green Hydrogen for Decarbonising Asia,” commissioned by the High-level Policy Commission on Bringing Asia to Net Zero, conducted by Global Efficiency Intelligence.
This organisation explored the potential and trajectory for electrolysers critical to meet the burgeoning demand for green hydrogen (H2) in Asia’s four largest economies: China, India, Japan, and South Korea. The report underscores the key manufacturers as representatives of change in Asia’s net zero transition.
The study zeroes in on the effect of green H2 within three industries, steel, ammonia, and methanol
Under various decarbonisation strategies. In these sectors, green H2 holds the potential to vastly cut emissions by replacing carbon-intensive processes with electrolysis powered by renewable energy.
The findings reveal that if these four nations adhere to their declared net zero targets, the collective market potential for electrolysers in these industries could soar to $180 billion by 2050. This growth represents a CAGR of up to 12% between 2030 and 2040, nearly five times the market potential under a business-as-usual scenario.
Post these findings, the report specifies recommendations aimed at accelerating the development and adoption of green H2 and electrolyser manufacturing. These recommendations are targeted at policymakers, industry players, investors, and major tanks, advocating for procedures that collectively support a robust ecosystem for green H2 production and paving towards a net zero industry in these countries.
Key Highlights:
- Economic Growth and Emissions: Asia’s economic growth has increased the emission levels and it is thus crucial to embrace new environmentally friendly technologies.
- Role of Green H2: In industries such as steel, ammonia, and methanol, there are considerable cuts to be associated with green hydrogen.
- Market Potential: Assuming China, India, Japan, and South Korea, the electrolyzer market by 2050 could reach $180 billion, with a CAGR of 12% between 2030 and 2040, under the net-zero target.
- Policy Recommendations: The report highlights a few recommendations outlining how to promote the innovation and use of green H2 technologies by implementing strategic actions specially designed for each pathway.
