Across the Asia Pacific region, a pipeline of more than 56 GW of planned green hydrogen capacity is translating into just 6.46 GW under construction, highlighting a widening execution gap in one of the world’s most closely watched energy transition markets.
The data, compiled by the Energy Industries Council, underscores a structural slowdown in project realization outside China, despite strong policy narratives and project announcements.
The disparity becomes more pronounced at the project level. Of 221 tracked developments across the region, fewer than 13 percent in key markets such as Australia, India, and South Korea have reached final investment decision. Australia has advanced only eight out of 63 announced projects, India eight out of 60, and South Korea three out of 27. This low conversion rate points to systemic bottlenecks rather than isolated project risks.
Contracting activity reflects the same trend. Awards across the region fell to 27 in 2025, down from 54 the previous year, indicating that developers are delaying procurement commitments amid uncertain project economics. This contraction suggests that the slowdown is not limited to early-stage feasibility but extends into execution phases where capital deployment decisions are made.
The underlying constraints are consistent across markets. Offtake uncertainty remains the most immediate barrier, with few large-scale buyers willing to commit to long-term hydrogen purchases at current price levels. Without bankable offtake agreements, projects struggle to secure financing, particularly given the high upfront capital requirements associated with electrolyzer deployment and supporting infrastructure.
Infrastructure gaps compound this challenge. Hydrogen transport, storage, and export facilities are either underdeveloped or entirely absent in many APAC markets, creating a mismatch between production ambitions and delivery capabilities. This is particularly evident in export-oriented strategies, such as those pursued by Australia, where large-scale hydrogen or ammonia projects depend on port infrastructure, shipping capacity, and receiving terminals that are still in planning phases.
Permitting delays and supply chain constraints add further friction. Regulatory frameworks in several countries remain fragmented or underdeveloped, slowing project approvals. At the same time, global supply chains for electrolyzers and key components are still scaling, contributing to cost uncertainty and extended project timelines.
In contrast, China continues to demonstrate a different trajectory, driven by coordinated industrial policy and domestic supply chain depth. The country accounts for approximately 60 percent of global electrolyzer manufacturing capacity and hosts more than 3,000 companies across the hydrogen supply chain. Direct government support, estimated at around $210 million, has reinforced this industrial base while enabling rapid project deployment.
Operational capacity in China reflects this acceleration. The country has developed 58 green hydrogen plants with a combined capacity of 3 GW, producing approximately 123,000 tonnes per year. This output already exceeds the production targets set under its 2021 to 2025 policy framework, which aimed for 100,000 to 200,000 tonnes annually. The ability to surpass these targets suggests that policy alignment across production, infrastructure, and demand creation is translating into measurable deployment outcomes.
The divergence between China and the rest of APAC highlights a central issue in hydrogen market development: project pipelines alone do not indicate market maturity. In Australia, India, and South Korea, national strategies emphasize hydrogen’s role in decarbonization and export growth, yet execution is constrained by the absence of synchronized policy mechanisms that link supply development with demand creation and infrastructure rollout.
Emerging markets such as Indonesia and Malaysia are also exploring hydrogen opportunities, often within broader energy transition frameworks. However, these markets face similar structural barriers, particularly around financing and regulatory clarity, which limit their ability to move from concept to construction.
The projects that are progressing share common characteristics. They are typically anchored by identifiable offtakers, supported by clearer regulatory frameworks, and located in regions where infrastructure either exists or is being developed in parallel. This pattern suggests that hydrogen deployment is less a function of announced capacity and more dependent on integrated project ecosystems that align production, transport, and end use.
