Last spring, my article on South Korea’s hydrogen industry examined the country's ambitious goals, the challenges it faced and the role international innovators could play in supporting its progress.
This latest piece builds on that foundation, exploring how both Korea and Japan have advanced their hydrogen strategies since, while tackling critical challenges including infrastructure gaps and carbon intensity. And I highlight the segments of the industry that offer the most promising opportunities for tech providers around the world in 2025, the Asian zodiac Year of the Snake.
Clean hydrogen production
The late 2010s and early 2020s saw a wave of optimism surrounding hydrogen energy, with South Korea and Japan making bold investments to scale up hydrogen production and infrastructure. However, this initial focus overlooked the carbon intensity of hydrogen production, and the need to decarbonise has since driven a significant shift towards greener, more sustainable technologies.
Japan and Korea are replacing the conventional methods of hydrogen production – such as steam methane reforming (SMR) and by-product hydrogen – with advanced electrolysis technologies which are far more environmentally friendly.
Proton exchange membrane (PEM) and anion exchange membrane (AEM) electrolysers have become central to this transition. And companies including Hyundai Motor and Honda are leading efforts to develop scalable solutions, with Korea targeting the deployment of 10 MW PEM and 12.5 MW AEM systems by 2026.
Large-scale projects are also on the horizon, with both nations aiming to establish gigawatt-level installations by 2030. These will depend on next-generation technologies like modular 20 MW AEM systems and 200 MW solid oxide electrolysis cell (SOEC) systems, which promise enhanced scalability and efficiency gains up to 90%.
It’s this focus on sustainable hydrogen generation that enabled us to secure a landmark agreement between our US hydrogen energy client Utility – whose technology enables hydrogen to be produced through a solid oxide-based system without the use of electricity – and Korean industrial decarbonisation pioneer GH EnA. The deal will see the two companies collaborate on many projects in Korea to produce clean, affordable, carbon-negative hydrogen from biogases.
This is the third deal we’ve secured for Utility in the country, following agreements with industrial group Hanwha Corporation and a major gas company.
Innovations in transport and storage
Despite their efforts to ensure hydrogen is generated more sustainably, though, Korea’s and Japan’s long-term ability to produce this domestically will be significantly constrained by their energy resources.
To address this challenge, both countries will need to import hydrogen – with Korea anticipating sourcing more than 80% of its supply from overseas by 2050, compared with virtually none today.
The need to import hydrogen has spurred massive investments in the necessary infrastructure, storage and transportation capabilities. In Korea, companies such as Hanwha Ocean and Samsung Heavy Industries are making strides in this domain, with initial test operations for liquid hydrogen transport infrastructure slated for the second half of this year.
HD Hyundai Heavy Industries and Korea Gas Corporation (KOGAS) are also leading initiatives in liquid hydrogen storage and transportation. Hyundai has unveiled a liquid hydrogen carrier ship concept which promises to enhance long-distance hydrogen transport. And Korea is building liquid hydrogen plants in the cities of Changwon and Ulsan and developing specialised cryogenic tanks to support efficient storage and distribution.
Japan, meanwhile, has made groundbreaking developments such as Kawasaki Heavy Industries’ Suiso Frontier, the world's first liquid hydrogen carrier ship, which successfully transported hydrogen from Australia to Japan in a landmark demonstration in 2022.
Kawasaki Heavy Industries’ liquid hydrogen carrier ship. Photo by Hunini
Additionally, Japan is using advanced materials such as nanostructure catalysts and thermal conductive materials to improve liquid organic hydrogen carrier (LOHC) systems, making them more efficient and cost-effective.
Such investments in liquefaction and storage, combined with advancements in shipping, are critical for connecting hydrogen production hubs in Australia and the Middle East to demand centres across East Asia.
Power and mobility
Alongside its progress in hydrogen transportation and storage, Korea stands out as a global leader in utility-scale fuel cell power plants, hosting over one-third of the world’s total capacity, which exceeds 1 GW. And the recent implementation of the Clean Hydrogen Portfolio Standard (CHPS) has further bolstered its position by incentivising power producers to adopt clean hydrogen through a mandatory renewable energy supply system.
Hydrogen mobility is another area set to see significant advancements. Hyundai is soon to launch its new hydrogen-powered vehicle, Initium, building on the success of the 35,000 Nexo cars it has sold over the past four years.
In Japan, Toyota is making strides in hydrogen combustion engines, signalling continued innovation and competition in the hydrogen mobility sector.
And, despite slower-than-expected recent growth in fuel cell electric vehicle (FCEV) sales, major players including Toyota, Honda and Hyundai remain steadfast in scaling up hydrogen-powered vehicles.
Left: Hyundai’s next generation FCEV, Initium. Right: Toyota’s hydrogen concept car
Opportunities for international innovators
So, Korea and Japan have made great steps forward in vital areas of the industry – particularly clean hydrogen production, transport, storage, power generation and mobility.
But both nations need to do more to consolidate and optimise these advancements – particularly to enhance their durability, safety and efficiency. And this is opening considerable commercial opportunities for overseas hydrogen tech companies.
In Korea, for example, there’s a growing need for advanced coating technologies to enhance the durability and safety of hydrogen storage vessels, FCEVs and fuel cell stacks – and Korean corporations are open to seeking these from international providers.
And, while the country is prioritising energy-efficient electrolysis systems to lower the cost and increase the sustainability of hydrogen production – alongside investment in ammonia cracking and hydrogen distribution infrastructure – these moves are creating significant prospects for international tech companies which specialise in these areas.
Japan is striding ahead in solid oxide fuel cell (SOFC) technology, but faces challenges including material degradation, thermal stability and long-term performance under high operating temperatures (typically 700–1,000°C). To address these issues, the nation’s corporations are seeking innovative ceramic processing techniques including nanostructured materials, high-entropy oxides and next-generation electrolyte formulations. These advancements can lower SOFC systems’ operating temperatures, improve their energy efficiency and extend their lifespans, making them more commercially viable.
Meanwhile, Korea’s focus on the SOFC field paved the way for us to secure a deal worth at least £36 million for British clean energy firm Ceres with Korean fuel cell giant Doosan. Based on this agreement, Doosan has been creating a mass production facility for Ceres’ solid oxide fuel cell stacks, with the two companies undertaking technology transfer and joint development. Ceres also benefits from royalties on fuel cell sales, further strengthening its position in the clean energy sector.
Japan’s push for ammonia-based hydrogen transportation and combustion technologies also presents openings for international companies with expertise in these fields. And its focus on expanding its hydrogen refuelling station network and exploring hydrogen blending in natural gas grids requires innovations in fuel infrastructure and safety management.
In addition, both countries are accelerating their investments in other aspects of hydrogen infrastructure, with Korea focusing on efficient distribution systems while Japan develops large-scale hydrogen storage networks for transportation and industrial applications. And these initiatives are creating significant prospects for overseas providers of fuel cell components, hydrogen logistics and next-generation production technologies.
Pioneering the hydrogen future
Through sustained innovation and investment, then, Korea and Japan are solidifying their positions as global leaders in the hydrogen industry. From scaling up clean hydrogen production to overcoming transportation and storage challenges and advancing infrastructure and utilisation technologies, the two nations are setting benchmarks for the rest of the world.
Their commitment to integrating hydrogen into power, mobility and industrial applications demonstrates a forward-thinking approach that balances technological advancements, environmental responsibility and economic growth.
But their corporations can’t do it all alone.
In the Year of the Snake, their bold steps toward a hydrogen economy open huge opportunities for innovators from around the world to get involved.
To discuss your prospects in the hydrogen industry in Japan or Korea, you can contact Dilshod at dilshod.akbarov@intralinkgroup.com