Global Clean Hydrogen Industry Commits Over $110 Billion in Investments

Many companies have halted their clean hydrogen projects, leading some to express concerns about the future development prospects of the hydrogen industry. A new report counters growing skepticism: over 500 hydrogen projects worldwide have reached mature stages, attracting more than $110 billion in investment.

The "Global Hydrogen Review," released on September 9 by the Hydrogen Council, states that the clean hydrogen sector has reached a significant milestone, with over 500 global projects committing over $110 billion—projects that have either finalized investment decisions (FID), are under construction, or already operational—a $35 billion increase compared to the same period last year. Since 2020, the industry has seen an average annual growth rate of 50% in committed investments.

The report notes this progress is accompanied by natural selection, where projects with strong commercial potential advance while less feasible ones are terminated, indicating the industry's maturation. Since 2020, over 1,700 hydrogen projects have been announced globally, a 7.5-fold increase. Meanwhile, approximately 50 projects have been publicly canceled in the past 18 months, accounting for about 3% of the total project pipeline, most of which were early-stage renewable hydrogen initiatives.

According to the report, on the supply side, the total capacity of committed hydrogen projects exceeds 6 million tons per year, with 1 million tons already operational. Accounting for project delays and expected capacity attrition, the current project pipeline could support clean hydrogen production capacity of 9 to 14 million tons per year by 2030.

Demand realization is the next major challenge facing the hydrogen industry. The report indicates around 3.6 million tons per year of binding procurement commitments have already been secured. With policy frameworks becoming clearer in key markets such as the European Union, the United States, Japan, and South Korea, up to 8 million tons per year of clean hydrogen demand could be realized by 2030.

The report states China leads the world in hydrogen projects, with approximately $33 billion in committed investment and renewable hydrogen output accounting for over 50% of global capacity. North America follows with around $23 billion in committed investment and currently holds 85% of global low-carbon hydrogen production. Europe ranks third with about $19 billion in committed investment but accounts for nearly two-thirds of the projected global demand by 2030.

Despite structural challenges, industry confidence in the hydrogen sector remains strong. According to the Hydrogen Council survey, 74% of responding companies reported stable or increased willingness to invest in hydrogen over the past two years, 97% believe hydrogen will be a key decarbonization solution for hard-to-abate sectors, and 83% expect continued industry growth.

Sanjiv Lamba, CEO of Linde and Co-Chair of the Hydrogen Council, said: "Over the past five years, the hydrogen industry has made tremendous progress, demonstrating its ability to innovate and scale. The Global Hydrogen Review shows we are at a critical juncture: accelerating market development and securing binding off-take agreements must become top priorities to ensure current projects deliver real impact. Achieving this requires stronger collaboration between businesses and governments to jointly build the frameworks and partnerships necessary to drive progress."