DNV Report Reveals New Energy Commodities Could Deliver Over a Quarter of Asia Pacific’s Emission Reductions by 2050

DNV Report Reveals New Energy Commodities Could Deliver Over a Quarter of Asia Pacific’s Emission Reductions by 2050

(IN BRIEF) A new DNV report predicts that new energy commodities (NECs) like hydrogen, ammonia, sustainable fuels, and carbon capture will drive over 25% of Asia Pacific’s emissions reductions by 2050, contributing around USD 1.1 trillion annually to the regional economy. With 81% of these commodities expected to be traded internationally, countries such as Japan, South Korea, and Singapore will depend heavily on imports, while Australia emerges as a major supplier. The report, launched at SIEW 2025, highlights the critical role of NECs in decarbonizing aviation, maritime, steel, and industrial sectors. DNV calls for robust infrastructure investment, standardized frameworks, and strong policy alignment to accelerate adoption, emphasizing that cooperation across APAC is key to achieving deep decarbonization and energy security.

(PRESS RELEASE) HØVIK, 29-Oct-2025 — /EuropaWire/ — A new report by DNV, the independent energy expert and assurance provider, projects that green fuels and feedstocks such as hydrogen, ammonia, sustainable fuels, and carbon capture will account for more than 25% of emissions reductions across Asia Pacific (APAC) by 2050. The findings highlight that while electrification and renewable power will drive much of the region’s energy transition, new energy commodities (NECs) are essential for achieving deep decarbonization, particularly in hard-to-abate sectors such as aviation, maritime transport, steel, power, industrial chemicals, and cement.

The study, titled The Role of New Energy Commodities in Decarbonizing Asia Pacific, was launched at the Asia Clean Energy Summit (ACES) during Singapore International Energy Week (SIEW) 2025. Building on DNV’s Energy Transition Outlook, the report estimates that the NEC market in APAC will reach USD 1.1 trillion annually—equivalent to around 3% of the region’s projected GDP for 2050. Crucially, 81% of NECs are expected to be traded across borders, underscoring the importance of international cooperation and harmonized regulatory frameworks.

Brice Le Gallo, Vice President and Regional Director, Asia Pacific, Energy Systems at DNV, emphasized the urgency of scaling up NEC technologies:
“Reaching net zero won’t be possible without new energy commodities, especially in Asia-Pacific where diverse solutions are needed due to the region’s geography. Hydrogen, ammonia, sustainable fuels, and carbon capture are critical for hard-to-decarbonize sectors. Without expanding NECs, these industries risk falling behind. Scaling up will require unprecedented investment, strong partnerships, and bold innovation.”

The report identifies significant geographic imbalances between NEC supply and demand across APAC. Japan, South Korea, and Singapore are projected to be major consumers, yet limited domestic capacity will leave them heavily reliant on imports. Meanwhile, Australia is well-positioned to become a leading exporter of clean fuels, supported by its abundant renewable resources, though it faces growing competition from other emerging producers in the region.

According to Thomas Koller, Regional Hydrogen, Ammonia and Sustainable Fuels Lead, Asia Pacific, Energy Systems at DNV:
“Each of the six key industries has a clear decarbonization pathway—whether through sustainable aviation fuels, ammonia and methanol-powered shipping, or hydrogen-based steelmaking. Carbon capture and storage will also play a vital role for sectors like steel and cement, where direct electrification remains unfeasible.”

To meet anticipated demand, DNV estimates that by 2050, APAC will require the installation of 12 billion solar panels and 2.7 million wind turbines, representing nearly 240 times Australia’s current combined solar and wind capacity. The region will also need to develop 189 new ports and over 1,200 specialized carriers to facilitate NEC production and trade.

DNV’s report outlines three strategic priorities for accelerating the NEC transition:

• Investing in resilient regional infrastructure and harmonizing technical standards to enhance interoperability.
• Optimizing biomass management for aviation and maritime fuels through flexible, balanced strategies.
• Strengthening carbon markets with clear pricing mechanisms, mandates, and certification frameworks to advance carbon capture and storage (CCS).

Le Gallo concluded:
“The energy transition in APAC is already underway, with emissions expected to peak this year. Achieving the region’s net-zero goals will demand a complete rethinking of how energy is produced, transported, and used. Collaboration across governments and industries is essential to overcome challenges such as high costs, infrastructure gaps, and fragmented standards.”

About DNV
DNV is an independent assurance and risk management provider, operating in more than 100 countries. Through its broad experience and deep expertise DNV advances safety and sustainable performance, sets industry standards, and inspires and invents solutions.

Whether assessing a new ship design, qualifying technology for a floating wind farm, analyzing sensor data from a gas pipeline or certifying a food company’s supply chain, DNV enables its customers and their stakeholders to manage technological and regulatory complexity with confidence.

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In the energy industry
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Media contact:

Neil James Slater
Head of Media Relations, Energy Systems
+442038165702
contact.energysystems@dnv.com

Penda Sall
Media Relations Advisor
contact.energysystems@dnv.com

SOURCE: DNV