A growing number of Asian governments are placing bets on hydrogen-powered transport, viewing it as a way to decarbonize hard-to-abate sectors, bolster energy security and stake out a lead in an emerging clean-energy value chain. While the technology is still years — if not decades — from commercial viability, countries including India, Japan, China and South Korea are pushing ahead with pilot programs and demonstration projects.
The motivations differ from country to country, according to analysts. Japan’s push is tied to its broader hydrogen society roadmap, while South Korea’s ambitions reflect a conglomerate-led focus on building an integrated industrial hydrogen ecosystem, said Ravi Krishnaswamy, managing director at Frost & Sullivan Asia Pacific. China is building out its fuel-cell supply chain to boost export competitiveness, while India is concentrating on low-cost rail retrofits as part of its self-sufficiency vision.
“There is no doubt on the fundamental ability of hydrogen to decarbonize hard-to-abate industries,” Rajeev Pandey, senior analyst for hydrogen research at Rystad Energy, told CNBC. But he cautioned that the long-term potential is “real but narrower than the hype,” and that commercial feasibility will likely only arrive in “defined lanes” on a 2030s-2040s timeline.
Rail emerges as early focus
South Korea and India are seen as the most likely markets for meaningful commercial adoption of hydrogen trains over the next decade, Pandey said, while Japan could see a smaller-scale rollout. India has already launched its first hydrogen-powered train, and Indian Railways previously said it aimed to run 35 hydrogen trains under its “Hydrogen for Heritage” initiative on heritage and hill routes.
The hydrogen fuel-cell train represents more of a “technology demonstration” so far and may find use on niche routes in hilly regions, said Vivek Lohia, managing director at Jupiter Wagons, a rolling stock provider to Indian Railways. A wider shift toward hydrogen could take more than two decades, he said.
In July, India launched 12 pilot projects involving 70 hydrogen-powered vehicles — including 27 buses and 43 trucks — and plans to set up 16 hydrogen refueling stations across 21 routes. The country’s National Green Hydrogen Mission aims not only to cut reliance on fossil fuels, but to position India as a global hub for the “production, usage and export of green hydrogen and its derivatives.”
According to the Asian Development Bank, India could see around $34 billion invested in green hydrogen and green ammonia capacity by 2030, based on current plans.
Japan and South Korea push ahead
In Japan, East Japan Railway plans to bring its hydrogen-hybrid train, HYBARI, into service by the end of fiscal 2027. “Investment in hydrogen-powered trains is still a niche decarbonization tool and a potential anchor-demand instrument for wider hydrogen ecosystem development in the long run, and not a direct replacement to electric rail corridors,” Krishnaswamy said.
South Korea’s city of Daejeon plans to deploy 34 hydrogen-powered trams by 2028, and the country is investing 32.1 billion won through 2027 in a hydrogen train demonstration project. The government forecasts the global hydrogen train market will grow by more than 25% annually to $26.4 billion by 2035.
China has also made strides in hydrogen rail, with CRRC Changchun unveiling the country’s first hydrogen-powered tourism train last year, according to Krishnaswamy.
Beyond transport
Hydrogen-powered rail should be viewed as part of a broader hydrogen market development strategy rather than a standalone transportation fix, Krishnaswamy said. It offers a visible and predictable way to reduce the risk of early investments in production, storage and refueling infrastructure.
In India and China, rail could serve as one of several “strategic demand anchors” — alongside industries such as steel and shipping — to accelerate market creation and support the transition toward cost-competitive green hydrogen, he said.
Energy security is another key driver, both analysts noted. India, Japan, South Korea and China are all heavily dependent on imported fossil fuels. Hydrogen can be stored and traded, while countries like India and China can also produce it domestically, Pandey said.
For Japan and South Korea, there is also a competitive angle: Hydrogen and fuel cells are among the few clean-energy value chains where those two countries still hold a technological lead, especially as China dominates areas like solar and batteries, Pandey added.
Source: www.cnbc.com — https://www.cnbc.com/2026/08/20/asia-hydrogen-trains-green-transport.html
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