Explainer: Catalysis & electrochemistry for decarbonization — what it is, why it matters, and how to evaluate options

The Asia-Pacific catalyst market reached USD 21.2 billion in 2025—representing 49% of global capacity—yet only 23% of electrochemical decarbonization projects in the region have achieved their stated efficiency targets within their first operational year. This stark gap between capital deployment and verified performance defines the central challenge facing engineers, investors, and policymakers navigating catalysis and electrochemistry for industrial decarbonization. While laboratory demonstrations routinely achieve >90% Faradaic efficiency for CO₂ conversion, translating these results to commercially viable systems operating at >1,000 hours of durability remains elusive. Understanding the difference between genuine progress and measurement theater—where impressive metrics obscure fundamental scalability barriers—has become essential for anyone evaluating options in this rapidly evolving space.

Why It Matters

Electrochemical processes powered by renewable electricity represent one of the few viable pathways to decarbonize chemical production at the scale required by net-zero commitments. The Asia-Pacific chemical decarbonization market is projected to grow from USD 76.75 billion in 2025 to USD 280.80 billion by 2035, representing a 13.87% compound annual growth rate and 42% of global volume. This trajectory reflects both the region's dominant position in chemical manufacturing and the intensifying pressure from Scope 3 emissions reporting requirements flowing through multinational supply chains.

Japan has committed ¥15 trillion (approximately USD 100 billion) over fifteen years to hydrogen and related electrochemical technologies through its Green Transformation (GX) initiative. South Korea's national hydrogen strategy targets domestic production of 3.9 million tonnes annually by 2040, requiring massive catalyst manufacturing capacity. China's 1,500 GW clean power target creates unprecedented demand for electrolyzers and associated catalyst materials. These government commitments translate directly into market opportunity—but only for technologies that can demonstrate verified, reproducible performance at scale.

The stakes extend beyond market opportunity to regulatory compliance. As carbon border adjustment mechanisms proliferate across trading partners, Asia-Pacific manufacturers face mounting pressure to verify the carbon intensity of their products with auditable precision. Electrochemical processes offer the potential for dramatically lower embedded carbon, but realizing that potential requires measurement systems that meet emerging international standards. Organizations that invest in rigorous characterization and standardized benchmarking now will hold significant advantages as verification requirements tighten.

Key Concepts

Catalysis refers to the acceleration of chemical reactions through materials (catalysts) that participate in the reaction mechanism without being consumed. In decarbonization contexts, catalysts enable electrochemical reactions—such as water splitting for hydrogen production or CO₂ reduction to fuels and chemicals—to occur at practical rates and energy efficiencies. The critical distinction for evaluation purposes: catalyst performance depends not only on intrinsic material properties but also on how catalysts are integrated into electrodes, cells, and systems. Laboratory catalyst characterization often fails to predict system-level performance.

Electrochemistry describes chemical transformations driven by electrical energy rather than thermal energy. For decarbonization, this matters because electricity can be sourced from renewables while heat typically derives from combustion. Key electrochemical processes include water electrolysis (splitting water into hydrogen and oxygen), CO₂ electrolysis (converting carbon dioxide into carbon monoxide, formate, or multicarbon products), and nitrogen reduction (producing ammonia without the Haber-Bosch process). Each process involves distinct catalyst requirements, operating conditions, and scale-up challenges.

Materials Characterization encompasses the techniques used to measure catalyst and electrode properties—composition, structure, surface area, electronic properties, and degradation mechanisms. Rigorous characterization distinguishes credible performance claims from measurement theater. Key techniques include X-ray diffraction (XRD), transmission electron microscopy (TEM), X-ray photoelectron spectroscopy (XPS), and electrochemical impedance spectroscopy (EIS). The 2024 CEN Workshop Agreement (SUNCOCHEM) established standardized protocols specifically for CO₂ electrolysis characterization, addressing longstanding reproducibility concerns.

Scale-Up refers to the transition from laboratory-scale demonstrations (typically <10 cm² electrode area) to pilot systems (100-10,000 cm²) and ultimately commercial installations (>1 m² and multi-stack configurations). Scale-up introduces challenges invisible at laboratory scale: mass transport limitations, thermal management, catalyst utilization efficiency, and degradation mechanisms that manifest only over extended operation. The critical metric is durability—laboratory demonstrations rarely exceed 1,000 hours, while commercial viability typically requires >40,000 hours (approximately five years) of stable operation.

Benchmark KPIs are the standardized performance metrics that enable meaningful comparison across technologies and vendors. For electrochemical decarbonization, essential KPIs include Faradaic efficiency (selectivity toward desired products), current density (reaction rate per unit electrode area, typically mA/cm²), energy efficiency (useful product energy output versus electrical energy input), and degradation rate (performance loss over time, typically expressed as %/1000 hours). Without standardized measurement protocols, these metrics become unreliable for evaluation—different testing conditions can make the same catalyst appear to perform dramatically differently.

What's Working and What Isn't

What's Working

Alkaline Water Electrolysis at Industrial Scale: Japan's Asahi Kasei operates a 10 MW Fukushima hydrogen demonstration and received government support for ¥35 billion to expand manufacturing capacity to 3 GW annually by 2028. Their alkaline electrolyzer technology achieves >70% energy efficiency with proven durability exceeding 80,000 hours in commercial installations. The technology's maturity enables standardized performance verification and reliable cost projections. Asahi Kasei's partnership with De Nora for containerized 1-7.5 MW systems demonstrates successful technology transfer from demonstration to deployment scale.

CO₂ to CO/Formate Production Approaching Commercialization: Electrochemical conversion of CO₂ to carbon monoxide and formic acid has achieved near-commercial performance levels. Multiple developers report >95% Faradaic efficiency at >200 mA/cm² current density with durability exceeding 2,000 hours. Avantium's Volta Technology pilot plant operates 40,000 cm² stacks processing 250 g CO₂/h with consistent performance. Siemens Energy's Rheticus project demonstrated 70% Faradaic efficiency at 0.3 A/cm² for over 1,200 hours at 10 cm² scale, with 25 kW pilot systems now operational. These single-carbon products represent the near-term commercialization opportunity.

Standardization Efforts Gaining Traction: The 2024 CEN Workshop Agreement (SUNCOCHEM) established the first consensus protocols for CO₂ electrolysis performance testing, addressing critical gaps in reproducibility. The agreement defines standardized procedures for baseline characterization, polarization curve measurement under both inert and reactive conditions, constant current/potential testing with in-line electrochemical impedance spectroscopy, and accelerated stress testing. Adoption of these protocols across Asia-Pacific research institutions would enable meaningful benchmarking and reduce the prevalence of unreproducible performance claims.

What Isn't Working

Multicarbon Product Selectivity at Scale: While laboratory demonstrations of CO₂ to ethylene conversion achieve >80% Faradaic efficiency at 1 A/cm² current density, these results do not transfer to larger electrode areas or longer operation times. Current copper-based catalysts exhibit structure-sensitive selectivity that degrades unpredictably during extended operation. No pilot-scale system has demonstrated stable C₂+ product selectivity exceeding 1,000 hours. The gap between published performance claims and verified operational results constitutes a significant source of measurement theater in this subsector.

Durability Testing Protocols Remain Inadequate: Most academic publications report catalyst performance over <100 hours of operation, with durability tests rarely exceeding 1,000 hours. Commercial viability requires five or more years of stable operation—approximately 44,000 hours. The absence of standardized accelerated durability testing (ADT) protocols specific to electrochemical CO₂ reduction means that long-term performance cannot be reliably predicted from short-term data. Developers extrapolating multi-year durability from weeks of testing are engaged in measurement theater, regardless of intent.

Carbon Balance Accounting at System Scale: Laboratory demonstrations typically use ultra-pure gaseous CO₂ and ignore unreacted CO₂ in product stream calculations. Industrial systems must handle impure CO₂ from capture processes and account for all carbon flows. The carbon intensity reduction achieved by electrochemical conversion depends critically on whether the full system—including CO₂ capture, purification, unreacted CO₂ recycling, and product separation—is considered. Projects claiming dramatic emissions reductions based on cell-level efficiency without system-level carbon balance are contributing to measurement theater.

Key Players

Established Leaders

Asahi Kasei (Japan) operates the largest alkaline electrolyzer manufacturing expansion in Asia-Pacific, with government-backed capacity targets of 3 GW annually by 2028. Their Fukushima demonstration and Malaysia feasibility studies (60 MW electrolyzer for 8,000 tonnes H₂/year) establish technology credibility at scale.

BASF (Germany, with major Asia-Pacific operations) provides catalyst materials across the electrochemical value chain, from platinum group metals for PEM electrolysis to specialized catalysts for chemical synthesis. Their Ludwigshafen Verbund model demonstrates integrated chemical production optimization.

Johnson Matthey (UK, with Asia-Pacific manufacturing) specializes in precious metal catalysts for fuel cells and electrolyzers, with established quality standards and characterization capabilities that enable reliable performance verification.

Tanaka Precious Metals (Japan) develops electrode catalysts for PEM water electrolysis, focusing on iridium usage optimization given the metal's extreme scarcity (¥20,000/gram). Their 2026 China production expansion addresses regional supply chain requirements.

Topsoe (Denmark, with Asia-Pacific partnerships) provides catalysts and technology licensing for green ammonia and methanol production, with SOEC (solid oxide electrolysis) systems achieving higher efficiencies than low-temperature alternatives for specific applications.

Emerging Startups

Twelve (USA, with Asia-Pacific investor participation) raised USD 645 million in 2024 to scale electrochemical CO₂ conversion to jet fuel and chemicals. Japanese investors Mitsui and Mitsui OSK Lines participated in 2025 funding rounds, signaling technology transfer potential to Asia-Pacific markets.

Avantium (Netherlands) operates pilot-scale CO₂ electrolysis for formate production and plant-based plastics (PEF), with commercial production targeted for 2028. Their Volta Technology demonstrates reproducible performance at 40,000 cm² electrode scale.

SunHydrogen (USA) develops nanoparticle catalyst technology for green hydrogen production, targeting cost reductions through materials efficiency improvements.

Verdagy (USA) offers large-format alkaline electrolyzers designed for lower capital costs through manufacturing simplification, with applications in Asia-Pacific renewable hydrogen projects.

Enapter (Germany) manufactures modular anion exchange membrane (AEM) electrolyzers that bridge PEM efficiency with alkaline cost structures, with distributed manufacturing reducing supply chain complexity for Asia-Pacific deployment.

Key Investors & Funders

TPG Rise Climate led Twelve's USD 645 million 2024 round, representing the largest single investment in electrochemical CO₂ conversion technology. Their project equity commitment signals long-term confidence in commercialization timelines.

Japan's Green Transformation (GX) Supply Chain Construction Support provides government-backed financing for domestic electrolyzer manufacturing, with Asahi Kasei's ¥35 billion expansion representing a flagship allocation.

Breakthrough Energy Ventures (founded by Bill Gates) has deployed over USD 2 billion in climate technology investments, including multiple catalyst and electrochemistry companies targeting industrial decarbonization.

Temasek (Singapore) actively invests in Asia-Pacific climate technology through both direct investments and fund-of-funds structures, with particular focus on technologies supporting regional decarbonization pathways.

ENGIE Factory Asia-Pacific operates a startup synergy program connecting early-stage climate technology companies with corporate development resources, with 24 climate-tech startups participating in 2024 initiatives.

Examples

Asahi Kasei–Gentari Malaysia Green Hydrogen Project: Asahi Kasei completed feasibility studies in November 2023 for a 60 MW alkaline electrolyzer installation in Malaysia, partnering with Gentari (PETRONAS) and JGC Corporation. The project targets 8,000 tonnes of green hydrogen annually by 2027. Technical specifications include multi-module electrolyzer stacks using Asahi Kasei's ion-exchange membranes and De Nora electrode technology. The project demonstrates Japan-ASEAN technology transfer and establishes verification protocols that could become regional standards for green hydrogen certification.

RIKEN Manganese Oxide Catalyst Breakthrough (Japan): In May 2024, Japan's RIKEN research institute demonstrated manganese oxide catalysts with 40x improved stability compared to conventional materials, sustaining 1,000 mA/cm² current density for one month in PEM electrolyzer conditions. The 94% planar oxygen lattice structure addresses the fundamental stability limitations that have prevented iridium-free catalysts from reaching commercial viability. While still at laboratory scale, the rigorous characterization methodology—including accelerated stress testing protocols—establishes a model for reproducible performance verification.

Toyota–Chiyoda Large-Scale Electrolysis Development (Japan): Toyota Motor Corporation and Chiyoda Corporation announced joint development of large-scale electrolysis systems in 2024, targeting a 10 MW installation at Toyota's Honsha Plant by FY2025. The design employs compact 5 MW basic units producing 100 kg H₂/hour each, enabling modular scale-up. The project applies Toyota's fuel cell manufacturing expertise to electrolyzer production, with explicit performance verification protocols that address the durability gaps common in early-stage demonstrations.

Action Checklist

• Require vendors to provide performance data using CEN Workshop Agreement (SUNCOCHEM) protocols or equivalent standardized testing procedures—reject claims based on non-standardized conditions.

• Demand durability data exceeding 2,000 hours before pilot investment decisions, with clear degradation rate metrics (%/1000 hours) and accelerated stress testing results.

• Verify Faradaic efficiency claims at current densities relevant to commercial operation (>200 mA/cm²)—laboratory results at 10 mA/cm² do not predict system-level performance.

• Establish carbon balance accounting for complete systems including CO₂ capture, purification, unreacted CO₂ recycling, and product separation—cell-level efficiency alone enables measurement theater.

• Audit catalyst manufacturing scalability before signing offtake agreements—laboratory synthesis methods often cannot produce the tonnes of material required for commercial installations.

• Request reference installations with similar operating conditions and independently verified performance data, including contact information for direct discussion with operators.

• Budget 15-25% of project capital for characterization equipment and testing infrastructure—rigorous measurement capability is essential for performance verification and continuous improvement.

• Align procurement specifications with ISO 19230 (gas sampling) and emerging electrochemical standards to ensure compatibility with future carbon verification requirements.

• Establish internal expertise in electrochemical impedance spectroscopy (EIS) and accelerated degradation testing to evaluate vendor claims independently.

• Engage with regional standardization bodies (including CEN and national equivalents) to ensure evaluation criteria reflect commercially relevant conditions rather than laboratory ideals.

FAQ

Q: What Faradaic efficiency and current density should I expect from commercially viable CO₂ electrolysis?

A: For CO₂ to CO or formate (single-carbon products), current commercial-readiness benchmarks are >90% Faradaic efficiency at >200 mA/cm² current density with demonstrated durability exceeding 2,000 hours. Siemens Energy's Rheticus project achieved 70% Faradaic efficiency at 300 mA/cm² for over 1,200 hours at laboratory scale. For multicarbon products (ethylene, ethanol), laboratory demonstrations reach >80% Faradaic efficiency at 1 A/cm², but no pilot-scale system has demonstrated stable multicarbon selectivity beyond 1,000 hours. Evaluate claims carefully: results at small electrode areas (<10 cm²) and short durations (<100 hours) do not predict commercial performance.

Q: How do I distinguish genuine catalyst performance from measurement theater?

A: Request standardized testing protocols—the 2024 CEN Workshop Agreement (SUNCOCHEM) provides specific procedures for CO₂ electrolysis. Key indicators of measurement theater include: performance reported only at low current densities (<50 mA/cm²), durability tests shorter than 100 hours, absence of degradation rate data, electrode areas smaller than 25 cm², pure CO₂ feeds without realistic impurity profiles, and Faradaic efficiency calculations that exclude unreacted CO₂. Credible developers publish complete polarization curves under both inert and reactive conditions, provide electrochemical impedance spectroscopy data, and specify exact testing conditions including temperature, pressure, flow rates, and electrolyte composition.

Q: What is the realistic timeline for electrochemical CO₂ conversion to reach commercial scale in Asia-Pacific?

A: For single-carbon products (CO, formate), commercial-scale demonstration is achievable by 2027-2028, with Avantium and Twelve targeting this timeline. For multicarbon products (ethylene, ethanol), fundamental catalyst stability challenges mean commercial viability is unlikely before 2032-2035. Green hydrogen from water electrolysis is already commercial, with Asahi Kasei and others manufacturing at GW scale. The limiting factor for all pathways is durability verification—five years of stable operation cannot be predicted from months of testing. Projects accelerating deployment timelines without adequate durability data are accepting substantial technology risk.

Q: How should Scope 3 emissions reporting influence electrochemical technology selection?

A: Electrochemical processes offer verifiable emissions reductions only when powered by renewable electricity and when full system carbon balance is documented. Select technologies with established measurement, reporting, and verification (MRV) protocols that align with emerging carbon border adjustment mechanisms. For green hydrogen, ISO 14687 and CertifHy certification provide recognized standards. For CO₂ conversion, no equivalent certification exists yet—this represents both a gap and an opportunity for early movers to establish credible verification practices. Avoid technologies where emissions reduction claims depend on optimistic grid carbon intensity assumptions or exclude upstream and downstream process emissions.

Q: What catalyst cost reductions are realistic over the next five years?

A: Alkaline electrolyzer catalysts (nickel-based) are already commodity materials with limited cost reduction potential. PEM electrolyzer catalysts (platinum, iridium) face fundamental scarcity constraints—iridium costs approximately ¥20,000/gram with no realistic substitute at equivalent performance levels. RIKEN's manganese oxide breakthrough demonstrates a pathway to iridium-free PEM catalysts, but commercial availability is 5-10 years away. For CO₂ electrolysis, copper-based catalysts are inexpensive, but electrode fabrication (gas diffusion layers, catalyst integration) dominates cost. Expect 30-50% electrode cost reductions through manufacturing scale-up rather than catalyst material improvements.

Sources

• International Energy Agency, "Global Hydrogen Review 2024," October 2024
• CEN Workshop Agreement, "SUNCOCHEM: Standardized Testing Protocols for CO₂ Electrolysis," Draft CWA v2.0, July 2024
• Grand View Research, "Catalyst Market Size, Share & Growth | Industry Report, 2033," 2024
• RIKEN, "Longer-lasting and more sustainable green hydrogen production," Research News, May 2024
• ACS Energy Letters, "CO₂ Electrolysis Technologies: Bridging the Gap toward Scale-up and Commercialization," 2024
• Asia Pacific Energy Research Centre (APERC), "Hydrogen Report 2024," 2024
• Asahi Kasei Corporation, "Green Hydrogen Production Equipment Manufacturing Expansion," News Release, December 2024