Charting the global hydrogen trade environment and evaluating role of Asia-Pacific region in demand built up

With the transition to sustainable energy systems boosting demand for hydrogen and hydrogen-based fuels, international trade in hydrogen will be an important part of the hydrogen supply chain. Countries that have limited domestic capabilities to produce low carbon hydrogen from renewables, nuclear energy or fossil fuels with CCUS – or that find these processes too expensive – can benefit from importing more affordable low-carbon hydrogen.

For countries with excellent renewable resources, international trade in hydrogen can provide an opportunity to export renewable resources that otherwise may not be exploited. Similarly, gas- or coal producing countries could join the market by exporting hydrogen produced from fossil fuels with CCUS. In the Net zero Emissions Scenario, international trade in hydrogen and hydrogen-based fuels covers ~15% of global demand for these fuels in 2030.

Australia, Chile , the Middle East & North Africa likely to emerge as key exporting regions

As per the pledged global scenario for hydrogen by the countries, by 2050 trade in hydrogen and hydrogen-based fuels accounts for 20% of global demand, with 8% of hydrogen demand being traded, 50% of ammonia and 40% of liquid synfuels. This reflects the comparatively lower transport costs of ammonia and synfuels.

While several countries (example, China and the United States) manage to cover growing demand for low-carbon hydrogen and hydrogen-based fuels domestically, others (example,  Japan, Korea and parts of Europe) rely on imports, at least in part. By 2050 in the Announced Pledges Scenario, Japan and Korea are importing each around 60% of their domestic demand for hydrogen and hydrogen-based fuels.