What could drive blue hydrogen development

Asia Pacific accounts for the second largest share in the total carbon capture market. 

Deployment of carbon capture projects will serve as a “key catalyst” for the development of blue hydrogen, particularly for markets that have sufficient natural gas reserves and expertise.

In a report, Fitch Solution said that implementing carbon pricing schemes will improve the economic viability of carbon capture projects, supporting the development of blue hydrogen.

Globally, the Asia Pacific region is the second leading in the carbon capture market, accounting for 14.6% of the total share.

READ MORE: Southeast Asia faces uphill battle in CCUS deployment without carbon pricing

It is behind North America which holds the lion's share of 59.6% of the total carbon capture market as of November 2022.

The US and Canada hold the majority of expertise in carbon capture projects, whilst Europe is expected to see the largest growth in carbon capture capacity supported by the announced large cluster projects financed by consortia of oil and gas, power and manufacturing firms.