A significant challenge for the development of clean hydrogen is the cost disparity between fossil fuel-based methods and cleaner alternatives. Currently, producing and installing an electrolyzer costs about three times more outside of China compared to within the country. According to a report from the International Energy Agency (IEA), China may achieve cost-competitive green hydrogen production with fossil-derived hydrogen by the end of the decade. This potential shift could enhance the attractiveness of hydrogen for various applications.
Southeast Asia presents a growing opportunity in the low-emissions hydrogen market, driven by economic expansion and increasing energy demand. The region currently consumes approximately 4 million metric tons of hydrogen annually, primarily within the oil refining and chemical industries for ammonia and methanol production. Additionally, Southeast Asia is a hub for international shipping; for example, Singapore’s port supplied around one-sixth of global shipping fuel in 2024, predominantly from fossil sources. However, there are ongoing initiatives to explore cleaner alternatives, including methanol and ammonia, with a longer-term interest in hydrogen.
Integrating clean hydrogen into these established industries could reduce emissions. Currently, there are 25 projects under development in the region, though substantial support for renewable energy sources will be essential to scaling up capacity effectively.
In summary, while hydrogen faces challenges in meeting expectations, the next five years may be pivotal in determining whether it can fulfill its potential in a transitioning energy landscape.
Source: https://www.technologyreview.com/2025/09/18/1123818/hydrogen-reality-check-china/