Asian countries building hydrogen economies look to transport sector

A swath of Asian governments is trying to get ahead of the curve on hydrogen-powered transport.

While the technology is years or even decades away from commercial success, its potential as a sustainable energy source has countries like India, Japan, China and South Korea working to establish programs to try it out.

The motivations vary. Japan’s push is part of its hydrogen society roadmap, while South Korea’s reflects conglomerates’ focus on integrated industrial hydrogen ecosystem that may include rail, according to Ravi Krishnaswamy, managing director at Frost & Sullivan Asia Pacific. China is building its fuel-cell supply chain for export competitiveness, while India is focusing on low-cost rail retrofits in line with its national self-sufficiency vision.

“There is no doubt on the fundamental ability of hydrogen to decarbonize hard-to-abate industries,” Rajeev Pandey, senior analyst for hydrogen research at Rystad Energy, told CNBC. The long-term potential is “real but narrower than the hype,” he said, adding that he expects the hydrogen economy to become commercially feasible at scale only in “defined lanes” on a 2030s and 2040s timeline. 

South Korea and India are among the most likely markets to see meaningful commercial adoption of hydrogen train over the next decade, Pandey said, while Japan could see a smaller commercial rollout.

India launched its first hydrogen-powered train in last month. Indian Railways said in 2023 it envisioned running 35 hydrogen trains under its “Hydrogen for Heritage” initiative on heritage and hill routes. In July, India launched 12 pilot projects that involve deploying 70 hydrogen-powered vehicles, comprising 27 buses and 43 trucks, and setting up 16 hydrogen refueling stations across 21 routes in the country. 

The hydrogen fuel cell-powered train was more of a “technology demonstration” and may find use in some niche routes in the hilly areas of India, Vivek Lohia, managing director at Jupiter Wagons, a rolling stock provider to Indian Railways, told CNBC. A shift toward hydrogen could take over two decades, he said. 

Under the National Green Hydrogen Mission, New Delhi is investing in hydrogen fuel cell technology not just to reduce its reliance on fossil fuel but to become a global hub for “production, usage and export of green hydrogen and its derivatives.”

India could see around $34 billion invested in green hydrogen and green ammonia capacity by 2030, based on current investment plans, according to the Asian Development Bank.