Jeffery Shan, Vice President of Merchant and Clean Energy at Linde LienHwa, sees strong decarbonization potential for hydrogen in heavy transport. (Photo: Hsu Tsu-lin)
Hydrogen energy is increasingly recognized as a vital component of global net-zero ambitions. While Europe and the U.S. have taken the lead with demonstration projects and infrastructure rollouts, Taiwan's hydrogen industry remains in its nascent stage. Building a domestic hydrogen value chain has therefore become an urgent priority.
Linde LienHwa Industrial Gases, Taiwan's largest bulk industrial gas provider, is set to activate the nation's first demonstration hydrogen refueling station. In an exclusive interview, Jeffery Shan, Vice President of Merchant and Clean Energy at Linde LienHwa, shared insights into how real-world applications and global experience can help identify strategic zones and approaches to accelerate Taiwan's hydrogen economy.
While often overlooked, industrial gases are integral to the operation of many industries. Linde LienHwa serves a broad range of sectors—from semiconductors and steel to petrochemicals, food, and healthcare. The company has also implemented oxy-fuel combustion technologies to help clients in carbon-intensive sectors such as steel, glass, and cement reduce emissions.
With decades of hydrogen production expertise, Linde LienHwa has quietly installed Taiwan's first hydrogen refueling station—well ahead of many local firms still observing from the sidelines. According to Shan, Taiwan's hydrogen development is currently focused on three main applications: transportation, power generation, and industry. Among these, he sees the greatest near-term potential in hydrogen-powered heavy transport.
Strategic investment in hydrogen transport infrastructure
"This industry will likely take at least 10 years to see returns," Shan acknowledged. Despite the long horizon, Linde LienHwa has opted to move early. The decision was bolstered by its joint venture with Germany's Linde Group, a global leader in hydrogen technology and infrastructure. The company aims not only to deploy critical infrastructure like refueling stations—which are foundational to any hydrogen mobility strategy—but also to help shape the market and lay the groundwork for future partnerships.
Why invest in hydrogen-powered transport in Taiwan? Shan explained that hydrogen vehicles address a major drawback of battery-electric trucks: battery weight. Large electric trucks require massive batteries, which reduce cargo space and increase transportation costs. In contrast, hydrogen trucks use lightweight storage tanks and fuel cells, enabling better payload efficiency. Hydrogen vehicles also offer faster refueling times and longer ranges—ideal for Taiwan's logistics sector, especially for fleets that operate along north-south corridors.
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Linde LienHwa's hydrogen production plant located in the Tree Valley Technology Park in Tainan. (Image courtesy of Linde LienHwa)
Infrastructure gaps and policy misalignment
Despite the promise, Taiwan still faces significant hurdles in hydrogen mobility. Currently, only two hydrogen refueling stations are nearing completion—one each by Linde LienHwa and CPC Corporation. Meanwhile, the number of hydrogen vehicles on Taiwan's roads remains extremely limited.
Although the Ministry of Transportation has approved pilot programs for hydrogen buses, no applications have been submitted in the past two years. The primary reason is insufficient government subsidies, which fail to offset the high cost of hydrogen buses. Likewise, there is no clear roadmap or economic incentive for building refueling stations, making it difficult for companies to justify investment.
Shan emphasized the need for government incentives such as subsidies, tax breaks, or carbon fee reductions to attract businesses to hydrogen transport. He also pointed out that the fragmented governance of hydrogen infrastructure—vehicles under the Ministry of Transportation, stations under the Ministry of Economic Affairs, and equipment safety under the Ministry of Labor—hampers cross-agency coordination and undermines implementation.
To overcome these structural barriers, Shan suggested Taiwan should follow the examples of Germany, Japan, and Singapore by establishing dedicated "hydrogen hubs" in strategic port areas. These hubs would integrate hydrogen production, storage, and application in a single zone. Taichung Port, for instance, is well-positioned with nearby power plants, LNG terminals, and carbon-intensive industries, along with relevant transport vehicles and cargo handling equipment. Consolidating resources in such zones would facilitate the development of a localized hydrogen ecosystem and accelerate commercialization.
Taiwan's unique role in the Asia-Pacific hydrogen supply chain
Although a late starter, Shan believes Taiwan can still carve out a strategic role in the Asia-Pacific hydrogen landscape by leveraging three key strengths: geographic location, strong industrial demand, and manufacturing expertise.
While Taiwan may lack vast renewable resources like Australia, it sits at a critical junction on major Asian shipping routes—making it an ideal transit point for low-carbon fuels such as hydrogen and ammonia. For example, Taiwan lies directly between Australia and Japan, two countries already piloting long-haul hydrogen transport. Ports like Kaohsiung and Taichung could emerge as regional refueling hubs for ships powered by clean fuels.
The world’s first liquid hydrogen carrier, Suiso Frontier, departed from Japan and delivered its first shipment of liquid hydrogen to Australia in January 2022. (Image: Australian Department of Foreign Affairs and Trade)
In addition to fuel bunkering, Shan sees potential in supplying clean hydrogen and ammonia to attract international firms—particularly data centers and AI companies with high power needs and strict carbon reduction targets. Providing reliable zero-carbon energy could position Taiwan as a compelling base for high-tech investment and accelerate its energy transition.
On the manufacturing front, Taiwan already has a strong foundation in fuel cell development and commercial vehicle assembly. Shan believes Taiwan could attract hydrogen vehicle assembly operations by offering competitive local components, reducing overall costs, and potentially exporting finished vehicles. With these three pillars—strategic location, industrial demand, and manufacturing capacity—Taiwan is well positioned to catch up and compete in the hydrogen mobility and infrastructure space.
The full article was translated by EnergyOMNI.
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