China and India Lead with Scalable Green Hydrogen Investments
Asia is emerging as the bright spot in the global green hydrogen landscape at a time when much of the world is scaling back its ambitions for this carbon-free fuel. While several energy majors in Europe and Australia have slowed or withdrawn from large-scale hydrogen ventures, new projects in China and India are proving that the pathway to cost-effective hydrogen is still alive—and evolving.
Why Green Hydrogen Matters
Green hydrogen is produced by splitting water into hydrogen and oxygen using renewable electricity. Unlike conventional hydrogen derived from fossil fuels, this method offers a clean alternative for industries such as shipping, aviation, steelmaking, and chemicals that are notoriously hard to decarbonize.
However, the technology has long been challenged by cost. While solar and wind energy costs have plummeted over the past two decades thanks to government support, innovation, and economies of scale, electrolyzers—the machines at the heart of green hydrogen production—have yet to experience a similar price decline. As a result, producing hydrogen via renewable electricity remains far more expensive than conventional fossil-based alternatives.
Despite these hurdles, Asia is now signaling that the breakthrough may be nearer than skeptics believe.
China’s Bold Steps Toward Scale
China, already a global leader in renewable energy adoption, has made significant strides in deploying green hydrogen projects. This year, massive factories producing green ammonia and methanol are being commissioned, marking some of the first large-scale industrial applications of hydrogen-derived fuels.
Envision Group, a prominent renewable energy and technology company, has recently inaugurated the world’s largest green ammonia plant. Meanwhile, Goldwind Science & Technology Co., known for its wind energy expertise, is preparing to launch a large-scale clean methanol facility.
Both ammonia and methanol are seen as key “carrier fuels” for hydrogen, enabling easier storage, transportation, and eventual use in industrial and shipping sectors. By pushing these projects forward, China is providing the world with test cases for whether green hydrogen can be produced and integrated into existing energy systems at scale.
If successful, these initiatives could reassure industries that worry about hydrogen supply reliability, opening the door for wider adoption in international trade and heavy manufacturing.
India’s Green Hydrogen Push
India, too, is betting big on green hydrogen to power its clean energy transition. The country’s Solar Energy Corporation of India (SECI) recently issued a tender to purchase 724,000 tons of green ammonia over a decade. The result? Record-low prices, signaling strong market appetite and growing competitiveness.
This move aligns with India’s broader hydrogen mission, which aims to make the country a global hub for hydrogen production and export. By securing long-term purchase agreements, the Indian government is giving producers the confidence to invest in electrolyzers, renewable capacity, and downstream industries.
Additionally, public-sector giant NTPC is advancing hydrogen mobility projects through its subsidiary, NTPC Green Energy Ltd., as part of its $1.2 billion listing aimed at testing demand for renewable energy ventures. These projects not only expand India’s clean energy portfolio but also contribute to reducing reliance on fossil fuels while supporting local job creation.
The Global Setback—and Why Asia’s Role Matters
Globally, enthusiasm around green hydrogen has tempered in recent years. Energy giants like BP Plc have pulled back from multibillion-dollar projects in Australia and elsewhere, citing concerns over high costs and uncertain demand.
This slowdown makes Asia’s efforts particularly significant. By pressing ahead despite the challenges, China and India are ensuring that hydrogen remains on the table as a viable decarbonization tool. Their investments provide both proof-of-concept and momentum for other regions that may be hesitant to move forward.
Patience as the Key Ingredient
The lesson from renewables is clear: transformation takes time. The solar and wind revolutions were decades in the making, driven by persistent government subsidies, technological breakthroughs, and global competition that lowered costs.
Experts argue that green hydrogen is on a similar trajectory. Initial projects may seem costly, but with sufficient policy backing and scaled production, prices are expected to decline over time. The early movers—like China and India—will likely benefit the most, positioning themselves as future leaders in the hydrogen economy.
Future Outlook: A Slower but Steady Path
Green hydrogen may not deliver the overnight revolution once promised, but its long-term potential remains immense. Consistent production from China’s new mega-plants and India’s price-discovery tenders could give industries the confidence they need to invest in hydrogen-based solutions.
Shipping, which contributes nearly 3% of global greenhouse gas emissions, could be one of the earliest adopters. Similarly, heavy industries like cement and steel could eventually transition as hydrogen becomes more competitive.
In the words of energy analysts, “A slower future is better than no future at all.” Green hydrogen’s journey may be gradual, but Asia’s latest developments ensure that progress continues.
Conclusion: Asia as the Torchbearer of Hope
At a time when the global green hydrogen industry faces skepticism and setbacks, Asia is keeping the flame alive. By combining government support, bold industrial projects, and market-driven price discovery, China and India are demonstrating that green hydrogen can be more than just a dream.
Their pioneering steps offer the world a vital reminder: transformative technologies need persistence, patience, and pioneers willing to take the first leap. With Asia leading the charge, the pathway to a cleaner, hydrogen-powered future is still very much within reach.
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