A new study conducted by the High-level Policy Commission on Getting Asia to Net Zero, convened by the Asia Society Policy Institute, highlights the significant potential for green hydrogen (H2) electrolyzers in Asia’s four largest economies. Titled “Green Hydrogen for Decarbonizing Asia’s Industrial Giants,” the report examines the role of electrolyzers in meeting the growing demand for green H2 in China, India, Japan, and South Korea. Conducted by Global Efficiency Intelligence, the study focuses on three key industries—steel, ammonia, and methanol—and explores various decarbonization scenarios.
The report projects substantial market growth for green H2 electrolyzers in these countries by 2050, particularly if they adhere to their net zero targets. The estimated market potential for the three industries by 2050 is as follows:
– China: $85 billion (up from $22 billion in 2030)
– India: $78 billion (up from $4 billion in 2030)
– Japan: $9 billion (up from $1 billion in 2030)
– South Korea: $8 billion (up from $1 billion in 2030)
This collective market potential is expected to reach $180 billion by 2050, with a compound annual growth rate (CAGR) as high as 12% between 2030 and 2040—nearly five times the market potential under a business-as-usual scenario.
The report emphasizes that the total electrolyzer market opportunity extends beyond these industries and provides a breakdown of the potential market for each industry and country analyzed.
To accelerate the development and adoption of green H2 and electrolyzer manufacturing, the report offers a set of policy recommendations. These recommendations target policymakers, industry stakeholders, investors, and think tanks, aiming to establish a robust ecosystem for green H2 production and use in pursuit of net zero emissions.
The report’s launch event took place on April 12 in New Delhi, India, where Ali Hasanbeigi, Founder, CEO, and Research Director at Global Efficiency Intelligence, highlighted the importance of utilizing green H2 in key sectors like steelmaking, ammonia, and methanol to achieve decarbonization. Hasanbeigi stressed the massive potential for electrolyzers in major Asian countries and the substantial benefits for those who seize this opportunity.
Kate Logan, Associate Director of Climate at the Asia Society Policy Institute, emphasized that ambitious net zero targets can drive demand for critical technologies like electrolyzers, essential for decarbonizing the region and the world. She suggested that Asia’s industrial giants view net zero pathways as opportunities for development rather than limitations.
Amitabh Kant, India’s G20 Sherpa, commended the release of the report, highlighting the need to transform sectors like steel and fertilizers to achieve India’s energy independence and net zero goals. Kant acknowledged India’s potential to produce green hydrogen for both domestic use and global markets, leveraging its abundant renewable energy resources.
Charith Konda, Energy Specialist at the Institute for Energy Economics and Financial Analysis, emphasized India’s significant growth potential in the green hydrogen electrolyzer market. He noted a projected CAGR of 16%, signaling positive prospects for investors and policymakers and underlining the strategic role of green hydrogen in achieving net zero objectives.
The High-level Policy Commission on Getting Asia to Net Zero, launched in May 2022, aims to accelerate Asia’s transition to net zero emissions while ensuring economic prosperity. Through research, analysis, and engagement, the Commission, with the Asia Society Policy Institute serving as the secretariat, seeks to advance a coherent and Paris-aligned vision for net zero emissions in the region. More information about the commission is available at AsiaSociety.org/netzero.
