Top Shot – A man takes a selfie with an Indian Railways hydrogen-powered train after the opening ceremony at Pandu Pindara station in Jind, Haryana, on July 17, 2026. India launched its first hydrogen-powered train on July 17, joining a small group testing the technology as part of efforts to decarbonize rail transport and reduce dependence on fossil fuels. (Photo by Arun SANKAR/AFP via Getty Images)
Arun Sankar | AFP | Getty Images
Many governments in Asia are trying to stay ahead of the curve when it comes to hydrogen transportation.
It will take years, even decades, for the technology to become commercially successful, but given its potential as a sustainable energy source, countries such as India, Japan, China and South Korea are working to establish programs to test it.
Motivations vary. Ravi Krishnaswamy, managing director of Frost & Sullivan Asia Pacific, said Japan’s push is part of a hydrogen society roadmap, while South Korea’s reflects the conglomerate’s focus on an integrated industrial hydrogen ecosystem, including railways. China is building a fuel cell supply chain to boost export competitiveness, while India is focusing on low-cost rail upgrades in line with its vision of national self-sufficiency.
“There is no doubt about hydrogen’s fundamental ability to decarbonize hard-to-carbon industries,” Rajeev Pandey, senior hydrogen research analyst at Rystad Energy, told CNBC. He said the long-term potential was “real but narrower than the hype”, adding that the hydrogen economy would only become commercially viable at scale in a “defined lane” in the 2030s and 2040s timeline.
Pandey said South Korea and India are among the markets most likely to see commercially meaningful introduction of hydrogen trains over the next decade, but Japan is likely to have a smaller commercial rollout.
India launched its first hydrogen-powered train last month. Indian Railways said it envisions running 35 hydrogen trains on heritage and hilly routes in 2023 under its ‘Hydrogen for Heritage’ initiative. In July, India launched 12 pilot projects to deploy 70 hydrogen-fueled vehicles, comprising 27 buses and 43 trucks, and set up 16 hydrogen refueling stations on 21 routes across the country.
Hydrogen fuel cell-powered trains are more of a “technology demonstration” and could be used on some niche routes in India’s hilly regions, Vivek Lohia, managing director of Jupiter Wagons, which provides rolling stock to Indian Railways, told CNBC. The transition to hydrogen could take more than 20 years, he said.
Under the National Green Hydrogen Mission, New Delhi is investing in hydrogen fuel cell technology with the aim of not only reducing dependence on fossil fuels but also becoming a global hub for the “production, utilization and export of green hydrogen and its derivatives”.
Based on current investment plans, India could see around $34 billion invested in green hydrogen and green ammonia production capacity by 2030, according to the Asian Development Bank.
Asia’s hydrogen race
In Japan, JR East plans to begin operating its hydrogen hybrid train “HYBARI” by the end of 2027.
“Investing in hydrogen-powered trains remains a niche decarbonization tool and a potential anchor demand vehicle for broader hydrogen ecosystem development in the long term, not a direct replacement for electric rail corridors,” Krishnaswamy said.
Daejeon, south of Seoul, plans to deploy 34 hydrogen-powered trams by 2028, and South Korea is investing 32.1 billion won in a hydrogen-powered tram demonstration project by 2027. The government expects the global hydrogen train market to grow by more than 25% annually to reach $26.4 billion by 2035.
Mr. Krishnaswamy said China is also making progress in hydrogen railways, with CRRC Changchun announcing the country’s first hydrogen-powered tourist train last year.
Mr Krishnaswamy said hydrogen-fueled trains should be seen as part of a broader hydrogen market development strategy, rather than a standalone transport solution. This provides a visible and predictable way to de-risk initial investments in production, storage and refueling infrastructure.
He said that in India and China, rail could serve as one of several “strategic demand anchors” alongside industries such as steel and shipping, accelerating market creation and supporting the transition to cost-competitive green hydrogen.
Energy security is another factor, both analysts said. India, Japan, South Korea and China all remain heavily dependent on imported fossil fuels. Pandey said hydrogen can be stored, traded and even produced domestically in countries such as India and China.
For Japan and South Korea, there is another strategic consideration. It is industrial competitiveness that lies within China’s superiority in fields such as solar power generation and batteries. Pandey said hydrogen and fuel cells are among the few clean energy value chains in which both countries still have a technological lead.
