Green fuels to deliver over 25% of Asia-Pacific emission cuts by 2050 – DNV

Classification society DNV’s new report says green fuels like hydrogen, ammonia, as well as carbon capture systems will cut over 25% of GHG emissions in Asia Pacific (APAC) region by 2050.

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According to DNV, hard-to-abate sectors like maritime must prioritise new energy commodities (NECs), even as electrification and renewables lead most of the APAC’s energy transition.

Clean fuels like hydrogen and ammonia will “significantly enhance sustainability in the region, accelerating economic development and supporting growing populations,” DNV says.

The total NEC market in APAC is estimated to be around $1.1 trillion/yr, or about 3% of the estimated regional GDP for 2050, DNV notes.

The classification society notes that uneven distribution between countries rich in low-cost energy resources and those with high industrial demand will make international trade crucial to APAC’s future energy landscape.

“International trade is pivotal to deliver deep decarbonization, with 81% of NECs expected to be cross-border,” DNV says.

By 2050, Japan, South Korea and Singapore are expected to be among the largest NEC consumers in APAC, but limited domestic supply will make the countries “heavily reliant on imports.”

“Focus must also be given to managing biomass resources in aviation and maritime through balanced, flexible strategies,” DNV says.

Specific to shipping, 189 new ports and 1,221 carriers are required to support new energy commodity production and trade in the APAC region, DNV estimates. 

Attention must also be directed toward “enabling carbon capture and storage for hard-to-abate industries by strengthening market signals with carbon pricing, mandates and certification frameworks,” DNV adds.

By Aparupa Mazumder

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