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APEC Project Database

Project Title

Local demand as an enabler to a low-carbon hydrogen economy

Project Year

2025

Project Number

EWG_105_2025A

Project Session

Session 1

Project Type

Standard

Project Status

Project in Implementation

Project No.

EWG_105_2025A

Project Title

*
Local demand as an enabler to a low-carbon hydrogen economy

Project Status

Project in Implementation

Fund Account

*
APEC Support Fund

Sub-fund

ASF: Energy Efficiency, Low Carbon and Energy Resiliency Measures (EELCER)

Project Year

2025

Project Session

*
Session 1

APEC Funding

93,472

Co-funding Amount

5,000

Total Project Value

98,472

Sponsoring Forum

*
Energy Working Group (EWG)

Topics

Energy; Green Economy

Committee

SOM Steering Committee on Economic and Technical Cooperation (SCE)

Other Fora Involved

Other Non-APEC Stakeholders Involved

 

Proposing Economy(ies)

Chile

Co-Sponsoring Economies

Australia; Canada; Hong Kong, China; Japan; Korea; Peru; Chinese Taipei; Viet Nam

Expected Start Date

01/09/2025

Expected Completion Date

31/12/2026

Project Proponent Name 1

Daniela Rodriguez

Job Title 1

International Relations Analyst, Office of International Relations

Organization 1

Ministry of Energy

Telephone 1

56(2) 2365 6800

Email 1

Project Proponent Name 2

Angel Caviedes

Job Title 2

Head of the New Energy Carriers Unit

Organization 2

Ministry of Energy

Telephone 2

Not Applicable

Email 2

Declaration

Daniela Rodriguez

Project Summary

Several APEC economies have set ambitious targets for developing a low-carbon

hydrogen industry. Identifying demand opportunities remains one of the key barriers to final investment decisions for projects (FID).

To address this challenge, this project proposes a two-day workshop in Santiago during the first half of 2026, aimed at sharing information on the public policies APEC economies have successfully adopted to incentivize or drive local hydrogen demand. This will culminate in a report with public policy recommendations for local demand creation in APEC economies.

The project will focus on key hard-to-abate sectors, such as transportation (public transport, road, maritime, and aviation) and industrial processes with a focus on the mining sector. Experiences of economies that have successfully incorporated green H2 as a raw material to replace gray H2 in areas such as fertilizer production, food, glass and other industrial applications will also be welcome.

Relevance

Region

The APEC policy guidance to develop and implement clean and low-carbon hydrogen policy frameworks in the Asia-Pacific recognized clean and low carbon hydrogen as key energy vectors that contribute to climate change mitigation. Many APEC economies have outlined ambitious low carbon hydrogen production goals for 2025 or 2030. While the number of large-scale low-emission hydrogen production projects is rapidly increasing, only a small fraction has secured final investment decisions (FID). Two of the key barriers to FID facing hydrogen production projects are demand uncertainty and securing off-takers. As the International Energy Agency notes, “measures to stimulate low-emission hydrogen use have only recently started to attract policy attention and are still not sufficient to meet climate ambitions”,

In this context, the project will contribute to kick-start a technical dialogue, facilitate the exchange of experiences and best practices, and compile an up-to-date overview of APEC economies' progress in this area, fostering innovative solutions.


Eligibility and Fund Priorities

This project is eligible for Energy Efficiency, Low Carbon and Energy Resiliency Measures Sub-fund since Category 2 projects are defined as all other energy efficiency, energy access and low carbon measures projects, including renewable energy projects.


Information and experiences shared in the Workshop will contribute to achieving APEC's aggregate energy intensity reduction goal of 45% by 2035, as well as address capacity building across APEC economies and policy recommendations for decision makers.


Capacity Building

In APEC: “capacity building can be broadly considered as a process to enable member economies -particularly developing economies- to obtain, share, strengthen, maintain and develop knowledge, abilities, skills and technical know-how, through relevant individuals and institutions.” This project is about knowledge and technical know-how sharing and will benefit all APEC economies that have engaged in low-carbon hydrogen production and require technical expertise to accelerate its deployment, including for example Australia, Canada, Chile, China, Korea, the United States, Mexico and Peru, amongst others.

Objectives

In alignment with the APEC Policy Guidance to Develop and Implement Clean and Low-Carbon Hydrogen Policy Frameworks in the Asia-Pacific, the objective of this project is to share experiences and foster collaboration among APEC economies to explore the public policies (funding, pilot projects, tax incentives, end-use targets, mandatory quotas, etc.) that have been implemented to stimulate local demand and accelerate the adoption of low-carbon hydrogen in transportation and industrial processes (with a focus on the mining sector).

By encouraging collaboration and the exchange of best practices, this project aims to provide APEC economies with a comprehensive overview of how these policies have been addressed locally and in this way it will equip relevant ministries with tools to replicate successful strategies.

Alignment

APEC

During the EWG67 meeting in Lima in March 2024, participants noted the discrepancy between the announced low-carbon hydrogen projects and the lack of off-takers for these projects. There are several major hydrogen projects under development in APEC economies, yet many remain uncertain due to the absence of identified off-takers. In this context, for example, Chile believes that smaller-scale projects driven by local demand would be a crucial first step to help the industry and market grow

and solidify, an approach also recommended by the International Energy Agency in the 2024 Global Hydrogen Review Report.

This view should be further discussed with the APEC economies and continue sharing best practices to support an inclusive energy transition through various pathways, including clean energy.


Forum

This project is aligned with the APEC Policy Guidance to Develop and Implement Clean and Low Carbon Hydrogen Policy Frameworks in the Asia-Pacific, in consistency with the APEC Putrajaya Vision 2040 and the Aotearoa Plan of Action. Furthermore, the project contributes to the work of the APEC Expert Group on New and Renewable Energy Technologies (EGNRET) and to the expected outcomes of the Energy Working Group (EWG) 2025 Work Plan.

These initiatives call for collaborative efforts in research, technology development, deployment, and voluntary transfer on mutually agreed terms, as well as strategic actions to advance the development and implementation of clean and low-carbon hydrogen projects in the region.

Beneficiaries and Outputs

Output


1) Preliminary Report

The Preliminary Report aims to collect detailed information on the current state of local demand creation policy for green and low-carbon hydrogen in APEC, focusing on identifying gaps and challenges to demand growth and on identifying successful case studies. It will seek to identify the public policies (funding, pilot projects, tax incentives, end-use targets, mandatory quotas, etc.) that have been implemented to stimulate local demand and accelerate the adoption of low-carbon hydrogen in transportation and industrial processes (with a focus on the mining sector).

It will be accessible online, and targets a broad range of stakeholders within APEC economies, such as government officials and policy makers from APEC co-sponsoring economies and research institutions.

The Preliminary Report will provide recommendations for the design of the seminar, identifying the key issues and end-use sectors to be covered in the agenda.

The timeline proposed for this activity includes preparation and design (2 months), launch and distribution (2 months). Upon closure of the survey period, the consultant will clean and prepare the survey data for analysis (1 week) and then proceed to analyze the data, generate insights, and prepare a comprehensive Preliminary Report of a minimum of 30 pages, excluding annexes, within the agreed-upon timeline.

The content of the Preliminary Report will be:

  1. Information on the current state of local demand creation.
  2. policy for green and low-carbon hydrogen in APEC, focusing onidentifying gaps and challenges to demand growth and on identifying successful case studies.
  3. Identification of public policies (funding, pilot projects, tax incentives, end-use targets, mandatory quotas, etc.) that have been implemented to stimulate local demand and accelerate the adoption of low-carbon hydrogen in transportation and industrial processes (with a focus on the mining sector).


2) Seminar

The Seminar will bring together different stakeholders within APEC economies with the aim of fostering collaboration and exploring the public policies that have been implemented to stimulate local demand and accelerate the adoption of low-carbon hydrogen in transportation and industrial processes.

With a diverse participant base and comprehensive agenda, the Seminar will:

  1. Identify key challenges to the development of local demand for low carbon hydrogen in APEC economies,
  2. Highlight successful case studies of hydrogen demand creation policies
  3. Identify potential areas of collaboration between APEC economies in the area of hydrogen demand creation, to be used as an input for the summary report.


The Seminar will be conducted in-person in Santiago, Chile, over 2 days (7 hours each day). The detailed agenda (including key themes and end use sectors to be explored) will be informed by the Preliminary Report. PO commits to conduct ex-post survey.

The high level structure of the event will be as follows: the first day will include the presentation of key themes and case studies identified in the Preliminary Report, followed by technical presentations of key issues and case studies with Q&A, and moderated panel discussions with experts. The second day will take the form of hands-on workshops, with attendees divided into smaller groups to identify key opportunities for collaboration between APEC economies to drive local demand.


3) Summary Report including Success Case Studies and Public Policy Recommendations

The Summary Report serves as a comprehensive documentation of the key findings, analyses, and discussions arising from the ex-post surveys, as well as the technical Seminar on local demand creation. This report aims

to provide an up-to-date overview of APEC economies' progress in this area, highlighting successful case studies, as well as fostering innovative solutions and presenting recommendations for key areas of collaboration to drive further progress across APEC economies moving forward. In this way it will support policy development and capacity building efforts in the field.

The Summary Report will have a minimum of 40 pages, excluding annexes, and include at least 10 recommendations. It will be prepared in accordance with EWG standards before the project completion date. This means that will be shared with experts before its publication in the APEC website to include any element that should be incorporated to the report. APEC will then disseminate the document by publishing it on its website, specifically in EWG section. The Summary Report will be an APEC publication and will follow its corresponding guidelines. It will include the content proposed in Section B.

Additionally, APEC economies may post the Summary Reportin their Ministry of Energy's website - linking it to the APEC website.

Key timelines include: data compilation and synthesis, analysis of In- Person Seminar discussions (2 months), ex post survey analysis (1 month), drafting, review process and publication (1 month).


Outcome

1) Identify gaps and successful case studies: The preliminary report, based on an online survey and interviews with key stakeholders, will provide a comprehensive overview of progress made within APEC economies regarding

policies implemented or in development to stimulate local demand for low carbon hydrogen. This outcome will highlight the barriers and challenges and policy initiatives or institutional arrangements that are currently in

place or developing. This outcome will be measured by the ex-ante and ex-post surveys as “the percentage of participants reporting a significant knowledge increase” and “the percentage of APEC economies reporting a significant knowledge increase".

2) Improved policy alignment: Through technical exchanges and capacity-building activities, participating institutions will gain insights into the policy frameworks related to hydrogen demand creation as well as an overview about the state-of-art in specific APEC economies. By understanding the current status and practices of demand creation, stakeholders can identify gaps, learn lessons, and identify opportunities for collaboration

regarding this issue. The evaluation method will be the number of recommendations that are identified within

the Summary Report linked to increased alignment and future collaboration between APEC economies, as well as by the exante and expost surveys.

3) Provide policy recommendations: the Summary Report will identify at least 10 policy recommendations for APEC economies related to the development of policies to drive local demand for low carbon hydrogen. This outcome will be measured by the ex-ante and the ex-post surveys as "the percentage of APEC developing economies that are likely to implement recommendations".


Beneficiaries

APEC economies that have engaged in low-carbon hydrogen production and require technical expertise to accelerate its deployment. Also, APEC economies that have an interest in importing low carbon hydrogen in the future and require technical expertise to develop offtake sectors.

Primary beneficiaries: the workshop will be primarily focussed Government officials and policymakers from APEC economies who are responsible for designing and implementing green hydrogen demand policies in the energy sector, but will also draw from the wider hydrogen ecosystem, including researchers, private sector, demand technology developers, and investors. Given the internal policies of the Chilean Ministry of Energy, the organizers will seek for the beneficiaries of the project to align with a gender equality criteria.

Secondary beneficiaries: the Summary Report will benefit a wider audience who read it, increasing technical knowledge of hydrogen demand creation policies in other public policy officials and stakeholders. The Summary Report will also promote opportunities of future collaboration across APEC economies from both the public and private sectors, including companies involved in developing such infrastructure and end use projects. Indirectly, the low carbon hydrogen industry stands to gain, as the growth of local demand will enable low carbon hydrogen projects to take final investment decisions. Finally, it is expected to contribute to the empowerment of women in the energy sector, aligning with the goals of the Chilean Ministry of Energy regarding gender.

Dissemination

The Summary Report will be disseminated through various channels to ensure wide accessibility and visibility. Firstly it will be published as an electronic APEC Publication on the APEC website, which will enhance its credibility and recognition within the APEC community. Additionally, it will be made available electronically ensuring easy access to stakeholders across the region.

Gender

Please see Project Proposal in Supporting Documents folder.

Work Plan

Please see Project Proposal in Supporting Documents folder.

Risks

Please see Project Proposal in Supporting Documents folder.

Monitoring and Evaluation

Please see Project Proposal in Supporting Documents folder.

Linkages

This project will build on existing work that has been undertaken to develop the low carbon hydrogen economy, including the 2021 APEC policy guidance to develop and implement clean and low carbon hydrogen policy frameworks in the Asia-Pacific, which advocated for the use of knowledge, technological and policy exchanges to enable the development of the hydrogen economy. In light of this, this project intends to use this method of information exchanges to inform the development of a report highlighting successful case studies and public policy suggestions to drive the development of local hydrogen demand.

This project also aligns with APEC’s Lima Roadmap to Promote the Transition to the Formal and Global Economies (2025-2040), presenting an opportunity for economic and technical cooperation to ensure upskilling and reskilling the workforce for a rapidly changing economy, in line with the key enabling factors of the roadmap.

This project also supports the aims and actions set out in APEC's Lima Roadmap to Promote the Transition to the Formal and Global Economies (2025-2040), by facilitating economic and technical cooperation and capacity building.

The project aims to attract participants from diverse sectors, including the APEC Expert Group on New and Renewable Energy Technologies (EGNRET), the Asia Pacific Energy Research Centre (APERC).

Sustainability

The project is designed to ensure long-term impact and sustainability beyond the APEC funding period. This will be achieved through several key strategies aimed at supporting beneficiaries and ensuring the continuation of efforts initiated by the project.

After the project completion, the next steps to build on its outputs and outcomes include analyzing and advancing on the implementation of the recommendations from the Summary Report, organizing follow-up virtual workshops to review

progress, and establishing mechanisms for ongoing monitoring and reporting.

Stakeholders will be encouraged to integrate these recommendations into their policies and regulatory frameworks. To ensure these actions take place, a system for regular updates and progress reports will be established, including annual surveys or virtual meetings. Specific indicators and metrics will be developed to measure progress such as the number of economies attending each meeting and responding to annual surveys. Additionally, a feedback mechanism will be put in place to gather stakeholder input and address any challenges. By documenting and sharing success stories, case studies, and best practices, stakeholders will be motivated to continue advancing on local hydrogen demand initiatives.

Direct Labour

Please see Project Proposal in Supporting Documents folder.

Are there any supporting document attached?

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Project No.
Project Title
Project Status
Fund Account
Sub-fund
Project Year
Project Session
APEC Funding
Co-funding Amount
Total Project Value
Sponsoring Forum
Topics
Committee
Other Fora Involved
Other Non-APEC Stakeholders Involved
Proposing Economy(ies)
Co-Sponsoring Economies
Expected Start Date
Expected Completion Date
Project Proponent Name 1
Job Title 1
Organization 1
Telephone 1
Email 1
Project Proponent Name 2
Job Title 2
Organization 2
Telephone 2
Email 2
Declaration
Project Summary
Relevance
Objectives
Alignment
Beneficiaries and Outputs
Dissemination
Gender
Work Plan
Risks
Monitoring and Evaluation
Linkages
Sustainability
Direct Labour
Are there any supporting document attached?
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Secretariat Comments
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PMU Field 1
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Content Type: Standard Proposal