Global investments in low-carbon hydrogen have topped $110 billion across 510 projects, with China strengthening its lead in renewable hydrogen capacity, according to recent industry reports.
The findings come from the Global Hydrogen Compass 2025 by the Hydrogen Council and McKinsey & Co. and the International Energy Agency's Global Hydrogen Review 2025.
The Hydrogen Council report said sector investments have grown by more than 50% annually over the past five years. In the past year alone, investments rose by $35 billion, with projects under construction or already operating spreading worldwide.
More than 1,700 projects have been announced globally, but new announcements have slowed as the existing pipeline matures.
At least 50 projects have been scrapped in the past 18 months, about 80% of them early-stage renewable hydrogen ventures.
- China and North America stand out
Of the pledged 6 million tons a year of clean hydrogen capacity, about 1 million tons is already in operation. Accounting for delays, the current project pipeline could deliver 9 to 14 million tons annually by 2030.
China holds more than half of the committed renewable hydrogen capacity and has increased its operating capacity sixfold since 2022, making it the world leader in electrolyzer deployment. North America leads in low-carbon hydrogen projects tied to fossil fuels with carbon capture.
Project progress hinges on binding offtake agreements, the Hydrogen Council said. Globally, contracts cover 3.6 million tons a year of clean hydrogen, about 60% of pledged capacity, with Europe driving demand in refining and ammonia.
Japan and South Korea are turning to co-firing clean ammonia in power generation.
By 2030, combined demand in the EU, the US, Japan and South Korea is expected to reach around 8 million tons, while China has about 2 million tons of capacity in FEED-stage development, to serve rising domestic demand.
- IEA lowers outlook
The IEA said global hydrogen demand grew 2% in 2024 to about 100 million tons, tracking overall energy growth.
But it cut its forecast for low-emission hydrogen capacity in 2030 from 49 million to 37 million tons a year due to cancellations and delays—more than 80% from electrolyzer projects.
"For the first time, potential low-emissions hydrogen production by 2030 based on announced projects has declined," it added.
Low-emission hydrogen output rose 10% in 2024 to nearly 1 million tons, still less than 1% of the total.
The IEA noted production remains largely fossil-based, with 290 billion cubic meters of natural gas and 90 million tons of coal equivalent consumed last year.
Even so, over 200 projects have reached final investment decision since 2020, and capacity could rise fivefold to 4.2 million tons a year by 2030, the IEA said.
With stronger policies, the agency added that an additional 6 million tons could come online, raising low-emission hydrogen’s share of supply to around 4%.
By Handan Kazanci
Anadolu Agency
energy@aa.com.tr
