Hydrogen is a colorless, odorless gas. However, in the energy industry, it is distinguished by different colors to denote how hydrogen was made.
Today, most hydrogen is produced from natural gas via the steam methane reforming (SMR) process. This is the most cost-effective way to produce hydrogen at present. However, it emits a lot of carbon dioxide at the same time, so the hydrogen produced in this way is called "gray hydrogen".
When the carbon generated from SMR is captured, stored or reused, it is labeled as “blue hydrogen”, and “pink hydrogen” refers to hydrogen which is produced through electrolysis powered by nuclear energy.
"Green hydrogen" is derived from water electrolysis using renewable energy resources such as wind power, hydropower and solar power without carbon emissions throughout the process.
Although gray hydrogen will dominate the market in the short and medium term, green hydrogen has greater potential due to its carbon reduction properties, especially under the global push toward carbon neutrality.
As the performance of the green hydrogen industry chain depends on resource advantages, transportation and operating costs, systemic safety, and the efficiency of the entire chain, the maturity rate of the sector varies among countries. As an emerging industry, green hydrogen plays a key role in global energy transitions and transformation, requiring every value chain participant to support cross-border cooperation and leverage suitable technologies and services.
State of hydrogen energy industry chain globally
Countries around the world are increasingly investing and focusing more on hydrogen energy.
- United States
In 2020, the United States released the Hydrogen Program Plan that specifies several key technical and economic indicators, aiming to become a market leader in the hydrogen energy industry chain. In recent years, the U.S. government has given a lot of support to hydrogen energy-related fields. Due to limited upstream resources, the U.S. is focusing on Carbon Capture, Utilization, and Storage (CCUS) and mainly investing in blue hydrogen. In the long run, the United States, as a potential green hydrogen consumption market, will seek lower-cost green electricity and green hydrogen resources through technological R&D and cooperation.
- Europe
Whether gas prices rise or fall, carbon prices remain high in Europe due to the European Union's unwavering carbon neutrality strategy. Under the guidance of the strategy, the carbon market regulates the substitution relationship between gas-fired power and coal-fired power through carbon prices, reducing carbon emissions. Similarly, China has also established a carbon market, which is still in its infancy, with more than 10 times the carbon price gap between China and Europe.
In 2020, the EU released the European Hydrogen Strategy, where green hydrogen was hailed as a key solution for the low-carbon transformation of industries such as transportation, chemical, and smelting. Similar to the situation in the U.S., green hydrogen production resources are limited in Europe. Some manufacturers have turned to wind power to produce hydrogen, but on a relatively small scale. In the short term, the European market will also focus on investing in the blue hydrogen field.
- Middle East
On the other hand, the Middle East has abundant renewable energy resources such as wind power and photovoltaic power and with its vast deserts which make it a promising core production area of green hydrogen. However, the Middle East hydrogen market is still nascent. To overcome this, with its optimal green electricity resources, the region is switching from a supplier of traditional energy to becoming an exporter of new energy sources, by cooperating with investors and equipment manufacturers in other regions.
- Exploring the commercialization of hydrogen energy in Asia Pacific
China has built more than 400 hydrogen refueling stations and is the largest number globally. However, most of them are demonstration stations or bus supply stations, and only a few have achieved commercial operations due to the high price of hydrogen compared to other fuels, resulting in low operating rates. Nonetheless, with its abundant upstream resources and competitive cost advantages, China remains a key player in the sector.
Australia has an abundance of natural resources to produce clean hydrogen for its own use and to export to other nations. To build a clean, innovative, safe and competitive hydrogen industry, the government released Australia’s National Hydrogen Strategy to boost hydrogen industry with up to AUD $127 billion (USD $85 billion) of potential hydrogen projects that are focused on domestic use as well as large exports.
Meanwhile, India launched the National Green Hydrogen Mission in January 2023, with the goal to increase production to 5 million metric tonnes by 2030, meeting 40% of domestic demand.
Japan and South Korea are developing national policies and plans centered on the midstream and downstream of the hydrogen industry chain, covering hydrogen storage, construction and operation of hydrogen refueling stations, and fuel cells. They have accumulated a lot of experience in technology and business models.
As a key player in the green hydrogen industry chain in South Korea, Rockwell Automation recently provided control systems for more than 40 hydrogen refueling stations owned by key industry leader located in Korea. The charging system should be smart, safe and secure with high availability, adding remote maintenance and monitoring functions allowing hydrogen companies to operate multiple charging stations across the nation as the centralized way with more efficiency and visibility. There are similar cooperation cases in Europe and the United States, such as the green bus hydrogen refueling stations empowered by Rockwell's technology in Bielefeld, Germany.
Following these developments, companies in different industries such as energy, chemical, and equipment manufacturing are increasingly cooperating to jointly promote the industrialization of hydrogen energy. As an emerging industry, green hydrogen plays a key role in global energy transition and transformation, requiring every value chain participant to support cross-border cooperation and leverage suitable technologies and services.
To learn how Rockwell Automation can support at every stage of the hydrogen project lifecycle, visit our Hydrogen industry page.
This article is the first part of a two-part Asia Pacific hydrogen industry series. Click here to read the second part of the article on hydrogen development.
