A swath of Asian governments is trying to get ahead of the curve on hydrogen-powered transport.
While the technology is years or even decades away from commercial success, its potential as a sustainable energy source has countries like India, Japan, China and South Korea working to establish programs to try it out.
The motivations vary. Japan's push is part of its hydrogen society roadmap, while South Korea's reflects conglomerates' focus on integrated industrial hydrogen ecosystem that may include rail, according to Ravi Krishnaswamy, managing director at Frost & Sullivan Asia Pacific. China is building its fuel-cell supply chain for export competitiveness, while India is focusing on low-cost rail retrofits in line with its national 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. The long-term potential is "real but narrower than the hype," he said, adding that he expects the hydrogen economy to become commercially feasible at scale only in "defined lanes" on a 2030s and 2040s timeline.
South Korea and India are among the most likely markets to see meaningful commercial adoption of hydrogen train over the next decade, Pandey said, while Japan could see a smaller commercial rollout.
India launched its first hydrogen-powered train in last month. Indian Railways said in 2023 it envisioned running 35 hydrogen trains under its "Hydrogen for Heritage" initiative on heritage and hill routes. In July, India launched 12 pilot projects that involve deploying 70 hydrogen-powered vehicles, comprising 27 buses and 43 trucks, and setting up 16 hydrogen refueling stations across 21 routes in the country.
The hydrogen fuel cell-powered train was more of a "technology demonstration" and may find use in some niche routes in the hilly areas of India, Vivek Lohia, managing director at Jupiter Wagons, a rolling stock provider to Indian Railways, told CNBC. A shift toward hydrogen could take over two decades, he said.
Under the National Green Hydrogen Mission, New Delhi is investing in hydrogen fuel cell technology not just to reduce its reliance on fossil fuel but to become a global hub for "production, usage and export of green hydrogen and its derivatives."
India could see around $34 billion invested in green hydrogen and green ammonia capacity by 2030, based on current investment plans, according to the Asian Development Bank.
In Japan, East Japan Railway plans to put 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.
Daejeon, south of Seoul, plans to deploy 34 hydrogen-powered trams by 2028, while South Korea is investing 32.1 billion won through 2027 in a hydrogen train demonstration project. The government expects the global hydrogen train market to grow by more than 25% annually to $26.4 billion by 2035.
China has also made advances in hydrogen rail, with CRRC Changchun unveiling the country's first hydrogen-powered tourism train last year, said Krishnaswamy.
Hydrogen-powered rail should be viewed as part of a broader hydrogen market development strategy rather than a standalone transportation solution, Krishnaswamy said. It offers a visible and predictable way to help make early investments in production, storage and refueling infrastructure less risky.
In India and China, rail could serve as one of several "strategic demand anchors" alongside industries such as steel and shipping, helping accelerate market creation and support the transition toward cost-competitive green hydrogen, he said.
Energy security is another factor, according to both analysts. India, Japan, South Korea and China all remain heavily dependent on imported fossil fuels. Hydrogen can be stored and traded, while countries such as India and China can also produce it domestically, Pandey said.
For Japan and South Korea, there is another strategic consideration: industrial competitiveness amid China's dominance in areas such as solar and batteries. Hydrogen and fuel cells are among the few clean-energy value chains where the two countries still have a technological lead, Pandey said.
