
India, Japan, South Korea and China are investing billions in hydrogen-powered trains, using rail as a demand anchor for a green hydrogen economy even as the technology remains years from commercial scale.
India, Japan, South Korea and China are pouring money into hydrogen-powered trains. The technology is years from commercial success. Its potential as a sustainable energy source has spurred pilot programs across the region.
India rolled out its first hydrogen fuel-cell train last month, a 35-coach retrofit Indian Railways plans to replicate on heritage and hill routes. The government has launched 12 pilot projects involving 70 hydrogen-powered vehicles–27 buses and 43 trucks–and 16 refueling stations across 21 routes. New Delhi expects roughly $34 billion in green hydrogen and green ammonia investment by 2030, according to the Asian Development Bank.
The hydrogen fuel-cell train was more of a technology demonstration, Vivek Lohia, managing director at Jupiter Wagons, a rolling stock supplier to Indian Railways, told CNBC. A full shift could take over two decades, he said.
East Japan Railway plans to put its hydrogen-hybrid train, HYBARI, into commercial service by the end of fiscal 2027. South Korea is investing 32.1 billion won through 2027 in a hydrogen train demonstration project. The city of Daejeon plans to deploy 34 hydrogen-powered trams by 2028. The government expects the global hydrogen train market to grow more than 25% annually to $26.4 billion by 2035. China has also made advances. CRRC Changchun unveiled the country's first hydrogen-powered tourism train last year, said Ravi Krishnaswamy, managing director at Frost & Sullivan Asia Pacific.
Investment in hydrogen-powered trains is still a niche decarbonization tool and a potential anchor-demand instrument for wider hydrogen ecosystem development in the long run, Krishnaswamy said. It offers a visible and predictable way to help make early investments in production, storage and refueling infrastructure less risky. Hydrogen-powered rail should be viewed as part of a broader hydrogen market development strategy rather than a standalone transportation solution, he added.
Energy security is another factor, according to both analysts. India, Japan, South Korea and China remain heavily dependent on imported fossil fuels. Hydrogen can be stored and traded, and countries such as India and China can also produce it domestically, Rajeev Pandey, senior analyst at Rystad Energy, told CNBC.
For Japan and South Korea, there is a strategic calculation beyond decarbonization. Hydrogen and fuel cells are among the few clean-energy value chains where the two countries still hold a technological lead over China, which has come to dominate solar and battery manufacturing, Pandey said.
Long-term potential is real but narrower than the hype, Pandey said. He expects the hydrogen economy to become commercially feasible at scale only in defined lanes on a 2030s and 2040s timeline. South Korea and India are among the most likely markets for meaningful commercial hydrogen train adoption over the next decade, he said. Japan could see a smaller rollout.
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