Hydrogen energy trains and related transport projects are being advanced as part of the energy transformation in several Asian countries. For these governments, railways are used not only to reduce emissions, but also to create early demand for hydrogen production, storage and apostille facilities, leading to more complete hydrogen energy industry chains.
Commercialization takes longer
Industry interviewed by CNBC is generally of the view that hydrogen can reduce carbon in the high-emissions sector, but market prospects are not as fast as expected. Rystad Energy analyst Rajeev Pandey stated that large-scale commercialization of hydrogen was more likely to occur in a given scenario, at a point or in the 1930s to the 1940s.
In his view, in the coming decade, South Korea and India would have a better chance of achieving more meaningful commercial applications of hydrogen energy trains, and there might be smaller-scale delivery in Japan. By contrast, the full replacement of existing electrified railways remains unrealistic.
India advanced the pilot project
India launched its first hydrogen train last month. The Indian Railway introduced the “Hydrogen for Heritage” scheme as early as 2023, which envisages the operation of 35 hydrogen trains on heritage and mountain lines.
In July of this year, India launched 12 additional pilot projects to deploy 70 hydrogen-energy vehicles, including 27 buses and 43 trucks, and build 16 hydrogen-added stations on 21 routes across the country.
According to Vivek Lohia, the Managing Director of the Board of Directors of the Indian mainland railway equipment supplier Jupiter Wagons, the hydrogen fuel cell train is more like a technical validation that may be used in the future for subdivisions such as some mountainous areas. A large-scale shift to hydrogen energy could take more than 20 years.
Within the framework of the National Green Hydrogen Mission, India was investing in hydrogen fuel cell technology in the hope of reducing dependence on fossil fuels while promoting the country as a centre for the production, use and export of green hydrogen and its derivatives. The Asian Development Bank expects that, on the basis of current investment plans, investment in green hydrogen and green ammonia capacity in India could reach about $34 billion by 2030.
Synchronized layout between Japan and China
For its part, Japan's East Japan Passenger Railroad plans to put HYBARI in operation by the end of the 2027 fiscal year. The Korean city of Daejeon plans to deploy 34 hydrogen-enabled trams by 2028, and the Korean government is investing 32.1 billion won in demonstration projects for hydrogen-enabled trains up to 2027.
The Korean Government expects the global hydrogen train market to reach $26.4 billion by 2035, with an average annual increase of over 25 per cent. China is also advancing the layout. Ravi Krishnaswamy, Managing Director, Frost & Sullivan Asia-Pacific Region, mentioned that China's Chinese President Chun had launched the country's first hydrogen energy tourism train last year.
Railways are seen as the early demand for hydrogen.
According to analysts, the hydrogen railway is more suitable to be seen as part of larger hydrogen energy market construction than as an independent alternative to transport. It can provide relatively visible and predictable demand and help to reduce uncertainty about early investments in hydrogen production, hydrogen storage and upgrading infrastructure.
In India and China, railways, together with industries such as iron and steel and shipping, may become demand points for hydrogen energy markets. In addition to reducing emissions, energy security is one of the drivers. India, Japan, South Korea and China remain highly dependent on imported fossil fuels, while hydrogen energy can be stored and traded and India and China have indigenous production conditions.
For Japan and the Republic of Korea, hydrogen energy has a competitive dimension in industry. The two countries face strong competition from China in the area of solar energy and batteries, while hydrogen energy and fuel cells are still seen as one of the few clean energy tracks that retain technological advantages.