A new report from DNV reveals that green fuels such as hydrogen, ammonia, sustainable fuels, and carbon capture technologies will account for more than one-quarter of the Asia-Pacific region’s total emissions reductions by 2050.
While electrification and renewable power will remain at the forefront of the region’s energy transition, these new energy commodities are expected to play a crucial role in decarbonizing industries that are difficult to electrify, including shipping, aviation, steel, and cement production.
Shift toward green fuels
According to DNV’s study, The Role of New Energy Commodities in Decarbonizing Asia Pacific, the shift toward green fuels could create a market worth more than USD 1 trillion annually by 2050, representing roughly 3% of the region’s projected GDP. The report projects that over 81% of these energy commodities will be traded across borders, underlining the importance of strong regional supply chains and international cooperation. To meet anticipated demand, the Asia-Pacific region may require massive new infrastructure — including thousands of wind turbines, billions of solar panels, hundreds of ports, and over a thousand dedicated carriers for the transport of hydrogen and ammonia.
Green fuels will be particularly important for industries where direct electrification is impractical. In the maritime sector, ammonia and methanol are emerging as promising low-carbon alternatives to conventional bunker fuels. The aviation industry will rely on sustainable aviation fuels and synthetic options to reduce emissions, while green hydrogen is expected to become a critical input for cleaner steel and chemical production.
Different countries across the region are likely to play distinct roles in this new energy ecosystem. Resource-rich nations such as Australia could emerge as leading exporters of green hydrogen and ammonia, while highly industrialized economies like Japan, South Korea, and Singapore are expected to be among the largest importers. This dynamic will strengthen energy interdependence across Asia-Pacific and promote regional trade in clean fuels.
Diversified mix of low-carbon energy solutions
DNV emphasizes that realizing the full potential of these green energy commodities will require strategic focus in three main areas. First, governments and industry must work together to build resilient and flexible regional supply chains supported by investment, financing, and clear regulatory frameworks. Second, the region needs to adopt flexible biomass and carbon management strategies, particularly for sectors like aviation and shipping. Finally, greater policy support and incentives will be essential to accelerate the deployment of carbon capture and storage (CCS) technologies across heavy industries.
Despite its immense potential, the path toward large-scale deployment of new energy commodities will not be without challenges. High production costs, uneven regulatory frameworks, and infrastructure bottlenecks could slow progress. DNV notes that strong policy coordination, long-term investment planning, and international collaboration will be key to overcoming these hurdles.
The report concludes that achieving deep decarbonization in Asia-Pacific will depend not only on renewables but also on a diversified mix of low-carbon energy solutions. Green fuels and other new energy commodities will be indispensable in addressing the unique industrial and geographical challenges of the region, enabling Asia-Pacific to move decisively toward its 2050 net-zero goals while creating significant new economic opportunities.
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Source: DNV
