Asia Energy Transition Market Analysis by Sectors (Power, Electrical Vehicles, Renewable Fuels, Hydrogen and CCS/CCU) and Trends

Asia Energy Transition Market Analysis by Sectors (Power, Electrical Vehicles, Renewable Fuels, Hydrogen and CCS/CCU) and Trends

Summary

This outlook provides analysis and trends on Asia’s energy transition from non-renewable to renewable sources.

Asian countries have started pushing for policies and incentives which can allow them to become leaders in the main energy transition sectors. Although they are moving quickly in developing renewable energy, further policies and actions need to be implemented to increase its competitiveness across the other four sectors. Energy supply is also the main sector responsible for CO2 emissions in the region.

Key Highlights

The Asian power market is dominated by coal-fired power plants, which currently make up over 40% of the power mix, although certain countries, such as Singapore, heavily rely on gas to cover their energy demand. In both cases, the regional outlook for increasing renewable capacity by 2035 seems positive, with an expectation of almost 65% of renewables in the mix, with solar and wind the leading renewable technologies.  

Asia is positioned as an EV manufacturing leader, while ongoing financial incentives and increasing charging infrastructure will accelerate the uptake of electric vehicles in the region. This will be a key step in meeting the net zero emissions targets given the transportation sector is the second largest emitter of CO2. 

Growth in the use and production of renewable fuels, such as sustainable aviation fuels and renewable diesel, have been increasing in the region, with regional capacity leaders being Singapore and China. With the development of the projects currently announced, Asia will have a total capacity of over 3.6 billions gallons per year by 2026, almost double that of Europe.

Carbon capture has brought decarbonization improvements in power plants and is being implemented across multiple industry sectors, as it is critical for a lower-carbon future and essential to achieving net zero goals. Currently the region has announced over 20 million tonnes of annual capture capacity by 2030. 

Apart from a rising share of renewables within the power market, the development of new technologies such as low-carbon hydrogen are driving change in cleaner energy sources. However, Asian low-carbon hydrogen production will account just a 3% share of the global capacity by 2030. Even so, the Asian market is more oriented towards importing low-carbon hydrogen and has very strict targets focused on low-carbon hydrogen use across industries.

Scope

• Regional Energy Transition in Asia
• Policies supporting energy transition
• Power renewable capacity and generation by 2035 and thermal decommissioning capacity
• Electric vehicles market and growth
• Renewable refineries and key countries in Asia
• CCS capacity and main CCS developments
• Main hydrogen developments and hydrogen capacity in Asia

• Identify the last trends, policies and leaders in energy transition technologies.
• Develop market insight of current, in development and announced capacity and latest trends of each of the sectors.
• Understand the potential market growth and policy support for renewable power, hydrogen, renewable refineries, CCS, EVs.
• Facilitate the understanding on where the market is growing as it positioned as one of the main topics of the international agenda.