Hydrogen and ammonia are emerging as critical tools in Asia’s decarbonisation journey, particularly in hard-to-abate sectors such as steel, industrial chemicals, aviation and shipping. While electrification and renewables will deliver the bulk of emissions reductions, sustainable fuels and other new energy commodities are expected to play a decisive supporting role in meeting regional net zero targets.

Asia is already the world’s largest producer and consumer of hydrogen, with countries such as China, Japan and South Korea leading early development and India poised to become a major player. According to industry estimates, hydrogen, ammonia, sustainable fuels and carbon sequestration could account for more than a quarter of emissions reductions in Asia Pacific by 2050, with the APAC hydrogen market alone potentially reaching USD630 billion.

Despite growing momentum and increasing government support, challenges remain around cost competitiveness, infrastructure and regulatory frameworks. For overseas companies, opportunities are emerging across the value chain, from production and infrastructure to technology, logistics and project development. Identifying the right markets, partners and policy environments will be key to unlocking Asia’s hydrogen and ammonia potential.

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