Commercial supply chain and hydrogen strategy roadmap for Asia Pacific - China & India

The Chinese government at various levels is actively promoting hydrogen energy development

Hydrogen is gaining increasing attention from industries and policymakers in China. However, most of the current demonstration projects in the country have relied on conventional sources, including industrial by-product hydrogen and grey hydrogen produced from fossil fuels. The Chinese government at various levels has actively promoted hydrogen energy development. As of 2019, out of 34 Chinese provincial administrative regions, 17 (plus at least 22 municipal administrations) have published policies to develop hydrogen energy-related industries and infrastructure; this is complemented by more than 10 policy documents issued by the central government of China.

China launched a new FCEV pilot cities programme in 2020 to enlarge FCEV industry supply chains. In contrast with

vehicle purchase subsidies, the scheme rewards clusters of cities based on a series of parameters. To be eligible for financial rewards, city clusters must deploy more than 1 000 FCEVs that meet certain technical standards; achieve a delivered hydrogen price at a maximum of (Chinese Yuan) CNY 35.00/kg (~USD 5.00/kg); and provide at least 15 operational hydrogen refuelling stations (HRSs). Based on the plan and how well objectives are met, a maximum of CNY 1.5 billion (~USD 220 million) will be transferred to each selected city cluster between 2020 and 2023.

The Asia-Pacific region currently accounts for half of global industrial hydrogen demand, with China alone taking a major portion (17 Mt H2) for ammonia and methanol production. With growth across all sectors, China accounts for almost two-thirds of Announced Pledges Scenario hydrogen demand.

The Asia Pacific region currently accounts for half of global industrial hydrogen demand , with China alone taking a major portion 17 Mt H2 for ammonia and methanol production - IEA

Hydrogen strategy roadmap and targets for China – A landscape view till 2030

Most hydrogen trade projects under development are in Asia –Pacific

India and Italy have agreed to explore development of green hydrogen , setting up renewable energy corridors and joint projects in the natural gas sector

On 15th August 2021 Honourable Prime Minister of India – Mr. Narendra Modi flagged the launch of National Hydrogen Mission and announced to transform India into a global hub for green hydrogen production and export. Further, the country is also focusing upon having international tie-ups for developing green hydrogen. The mission envisages commercial production of green hydrogen production in India from financial year 2025-26 onwards. The draft proposes to undertake hydrogen production projects through a competitive bidding mode which would be open to participation from both public and private entities. Further, the mission includes frameworks for indigenous  manufacturing and research & development aimed at improving the efficiency of electrolysers – systems that use electricity to break water into hydrogen and oxygen in a process called electrolysis.

Among other provisions, the mission includes a framework for demand creation of green hydrogen through mandates in identified sectors. As for current capacity in the nation, a green hydrogen project with a production capacity of one tonne per day has been established at Bikaner, Rajasthan, under the private sector. Further, under a Research and Development project supported by the Ministry of New and Renewable Energy, a 5 Nm3/h (normal cubic meter per hour) green hydrogen production plant based on solar energy-powered electrolysis has been established at the National Institute of Solar Energy.

Hydrogen demand in India was close to 6 million tonne per annum in 2020 with most of the demand coming from ammonia production and refineries. - TERI

Hydrogen Development in the India – Market Landscape till 2021

Hydrogen Development in the India – Market Landscape till 2021 (Contd.)