Hydrogen is gaining strategic importance in the energy transition not only for decarbonization but also for energy security, system resilience and industrial growth, with globally committed clean hydrogen investments reaching $130 billion this year, according to recent Hydrogen Council report.
The key drivers shaping hydrogen investment vary by region, according to Hydrogen Council's Global Hydrogen Compass 2026 report.
More than 60% of committed investments are located in regions where energy security, economic growth and decarbonization are among the main priorities.
According to the report, committed clean hydrogen investment rose to $130 billion this year, corresponding to 6.9 million tonnes per annum (mtpa) of capacity across more than 570 projects. Around 90% of these projects are either under construction or operational.
- Hydrogen technologies set to play a bigger role in power systems
The report said localized production of clean hydrogen and hydrogen derivatives could help countries dependent on energy and feedstock imports diversify their sources of supply and build strategic reserves.
Such solutions could reduce supply chain and critical mineral dependencies by providing alternative sources for the agricultural and industrial sectors, while making food and fuel systems more resilient to price spikes and supply shortages.
The report noted that renewables now account for around 34% of global power generation, adding that the role of hydrogen technologies such as electrolyzers and fuel cells, which can provide demand-side flexibility, could become increasingly important as renewable capacity expands.
Hydrogen could help reduce costs through long-duration energy storage, lower renewable power curtailment and more cost-effective transportation of energy over long distances, according to the report.
Beyond supporting the energy transition, hydrogen could also contribute to industrial growth by enabling clean molecule production and the development of new technology supply chains across mobility and industrial applications.
By Gulsen Cagatay
Anadolu Agency
energy@aa.com.tr
