Hydrogen and Ammonia in Asia: Emerging Clean Energy Carriers or Costly Distractions?

Meta Description: Japan, South Korea, China, and others are betting on hydrogen and ammonia as low-carbon fuels. This article analyzes demand, supply, costs, and the strategic role of hydrogen in Asia’s energy transition. Introduction Across Asia, hydrogen and ammonia have moved from conference slides to concrete policy roadmaps. Japan and South Korea are positioning themselves as major importers of low-carbon hydrogen and ammonia, while countries such as Australia, the Gulf states, and parts of Southeast Asia aim to become exporters. At the same time, questions remain over costs, emissions integrity, and infrastructure readiness. This article examines the state of hydrogen and ammonia strategies in Asia, with a focus on credibility, economics, and what matters for the region’s broader renewable energy transition.

Japan and South Korea: First Movers on Demand

Japan’s Green Transformation (GX) Strategy and energy plans identify hydrogen and ammonia as central to decarbonizing power, industry, and shipping. Policy targets include large-scale co-firing of ammonia in coal plants and expansion of hydrogen refueling networks. aperc.or.jp South Korea has adopted similar ambitions, promoting hydrogen for power generation, fuel cell vehicles, and industrial use. Both countries increasingly view cooperative import corridors—notably with Australia, the Middle East, and Southeast Asia—as strategic. Recent analytical work highlights: Strong political support and subsidy frameworks But high delivered costs and lifecycle emissions uncertainties when using fossil-based “blue” hydrogen or grid-linked electrolysis without additional renewables. ScienceDirect +1

China, India, and Emerging Producers

China is investing heavily across the hydrogen value chain—from electrolyzer manufacturing to pilot green hydrogen hubs integrated with renewable bases. Its focus is primarily domestic: decarbonizing steel, chemicals, and heavy transport. India has announced the National Green Hydrogen Mission, targeting up to 5 MTPA of green hydrogen production by 2030 for export and domestic use. Policy support includes: Incentives for electrolyzer manufacturing Support for renewable-linked hydrogen clusters near ports and industrial centers Other potential exporters include: Australia: leveraging high solar and wind resources Middle Eastern suppliers targeting Asian markets Select ASEAN countries exploring pilot projects, though most are early-stage.

Ammonia as a Carrier and Fuel

Ammonia (NH₃) is increasingly discussed as: A hydrogen carrier—easier to transport and store than liquid hydrogen. A direct fuel—particularly for co-firing in coal plants and future shipping fuels. Japan’s plans to co-fire imported low-carbon ammonia in existing thermal plants are among the most advanced. However: The climate benefit depends heavily on upstream production (renewable vs fossil with CCS). Retrofitting coal plants to co-fire ammonia can lock in assets and delay full phase-out if not properly time-bound. For Asia, ammonia offers flexibility but must be scrutinized for real emissions reductions, not just book-keeping.

Cost Competitiveness and Infrastructure Gaps

As of mid-2020s estimates: Green hydrogen costs in Asia often range around USD 3–6/kg depending on renewable resource quality, electrolyzer costs, and financing. To compete widely in industry and power, estimates suggest sub-USD 2/kg is needed in many applications. Key constraints: Need for large volumes of dedicated renewables to ensure genuinely low-carbon supply. Port, storage, pipeline, and safety infrastructure still at pilot or concept stage. Unclear long-term policy guarantees across many Asian markets. Without aligned policies, offtake agreements, and carbon pricing, many flagship hydrogen projects risk delay or downsizing.

Strategic Role for Asia’s Energy Transition

Hydrogen and ammonia should be viewed as targeted tools, not silver bullets: Highest value in hard-to-abate sectors: steel, chemicals, shipping, heavy transport. Lower priority for conventional power generation where direct renewables + storage can be cheaper and simpler. Strategic cooperation among Asian buyers and producers can reduce costs via scale, shared standards, and bankable long-term contracts. For countries with strong renewable resources (e.g., Australia, parts of India, Central Asia, Middle East connecting to Asia), export-oriented hydrogen and ammonia can complement domestic decarbonization—if done with strict emissions accounting.

Key Takeaway

Hydrogen and ammonia in Asia sit at the intersection of industrial strategy, energy security, and climate ambition. Serious deployment will demand massive renewable build-out, robust certification frameworks, and disciplined focus on sectors where these molecules are indispensable. Used wisely, they can reinforce Asia’s net-zero pathways; used poorly, they risk becoming an expensive distraction.

Suggested Sources for Readers:

• APERC Hydrogen Report 2023/2024 aperc.or.jp

• Studies on hydrogen carriers & ammonia supply chains in Korea and Japan ScienceDirect+1