H2Tech Market Data 2023 - 15

ammonia to decarbonize major sectors of the country's
economy. First production is scheduled for 2027. The
solar and wind farm will also be instrumental in the larger,
nearly $22-B Morocco-UK Power project, which will send
clean electricity to the UK via a 3,800-km undersea cable.
In mid-2021, Chinese solar panel manufacturer GCL
Group announced plans to develop a 4-MMtpy ammonia
facility in Djibouti. The ammonia will be produced from
natural gas feedstocks produced from the country's Calub
and Hilala gas fields. The produced ammonia will be converted
into approximately 2.5 MMtpy of liquid H2
.
ASIA-PACIFIC
The region is striving to reduce emissions, with several
countries announcing net-zero targets around mid-century.
Asia is home to five of the 10 largest CO2
emitting
nations (China, India, Indonesia, Japan and South Korea)
and accounts for nearly half of global greenhouse gas
(GHG) emissions.
Many nations in the Asia-Pacific region plan to invest
in new H2 production facilities, as well as incorporate CCS/
CCUS technologies into existing operations or add carbon
capture to existing project scopes.
Projects. According to the McKinsey & Co. report Asia's
net-zero transition: Opportunity and risk amid climate action,
4% New Zealand
4% South Korea
6% Other
4% Malaysia
6% Japan
5% Indonesia
12% India
8% China
51% Australia
FIG. 9. Active H2 projects in Asia by country.
the region could witness more than $3 T/yr in capital spending
to reduce CO2
emissions (net-zero scenario). This spending
is approximately $1 T more than what was spent in 2020.
If this capital spending materializes, the Asia-Pacific region
would account for about one-third of investments globally
per year. Infrastructure and equipment would be the primary
investment focus, along with substantial spending on power
assets. However, this scenario may be difficult to achieve
due to numerous factors, including economic struggles, a
difficulty to wean off fossil fuels usage and several others.
At present, the GEI database is tracking 200 active H2
and CCS projects in the Asia-Pacific region. Nearly 90%
of these projects are in pre-construction phases, primarily
in the planning/proposed phase. More than 75% of these
projects are green H2
production, followed by blue H2
projects. In total, these two pathways account for 95% of
the region's future H2
production. More than half of the
region's H2 projects are in Australia, followed by India,
China and Japan (FIG. 9).
Fitch Ratings estimated that Asia's electrolyzer capacity
could surpass 10 GW by 2030, although green H2
projects
remain a wild card that could accelerate this capacity dramatically
toward the end of the decade. The development
of green H2
capacity is closely linked to the abundance of
affordable renewable electricity and the need for backup
power. Many estimates expect that the cost of electrolyzers
could halve and allow green H2
with gray (fossil-based) H2
to reach market parity
by 2030. Asia-Pacific remains
the fastest-growing region for both energy demand and
renewable power growth over the coming decades.
National initiatives and projects across the Asia-Pacific
region to produce and incorporate H2
are discussed in the following sections.
into the energy mix
Fuel cell electric vehicles (FCEVs) and refueling
networks. Worldwide, 584 H2
refueling stations were
deployed as of the end of 2020, with half of these located
in Asia-Pacific and one-third located in Europe. Within
the Asia-Pacific region, Japan leads in H2
refueling station
installations with around 150, although China has already
deployed more than 100 stations in a short period of time.
At present, Japan's H2
-powered vehicle fleet numbers
fewer than 4,000; many of these vehicles are owned by
the government. Japan aims to have 200,000 H2
and 320 H2 refueling stations in use by 2025. To this end,
FCEVs
Japanese automaker Toyota introduced the Mirai-meaning
" future " in Japanese-in 2014 as the world's first commercially
produced, H2-fueled vehicle. Recent improvements
to functionality, such as the 30% increase in Mirai driving
distance offered on Toyota's newest model, are anticipated
to enhance the attractiveness of H2
-fueled transportation.
Meanwhile, South Korea already hosts enough refueling
stations to enable a cross-country drive via FCEV. The
country's 2020 economic strategy included the provision
of 200,000 H2
vehicles and 450 FCEV charging facilities
by 2025. Korea's Hyundai Motor Co. began production
of an H2
-electric hybrid car in 2013 and launched the
Nexo FCEV in 2018.
It is predicted that, by 2035, H2
stations will be commonplace
throughout most of China, Japan and South
Korea-in addition to Western Europe and the U.S. Also,
Thailand's government is encouraging electric transport,
which opens a potential market for H2
fuel cells.
Australia. Australia aims to become a major H2
producer
by 2030 under its National Hydrogen Strategy, released in
November 2019. One report calculated that global demand
for H2
exported from Australia could exceed 3 MMtpy
by 2040, which could contribute up to A$10 B/yr to the
country's economy. Initial key customers are expected to
be Japan and South Korea. Australia's goal is to boost H2
production capacity by establishing H2
hubs throughout
the country, as well as expand CCS projects-the Australian
government has vowed to provide nearly $750 MM to fund
low-emissions technologies. The country's LNG industry
has also announced the use of CCS to help decarbonize
LNG operations. The Australian LNG industry can use CCS
to mitigate Scope 1 and 2 emissions by capturing CO2
in
extraction and liquefaction processes, then inject it into
depleted natural gas and oil reservoirs.
Coal and LNG make up 25% of Australia's total exports
at present, and resource-scarce Japan is a major importer
of Australian energy. However, Japan's late-2020 announcement
of its plan to reach carbon net neutrality by 2050
15
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H2Tech Market Data 2023

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