Hydrogen Takes Off Finally, Clean Energy Poised for Lift-off

Hydrogen investments, market potential, projects across globally.

For decades, hydrogen has been touted as a potential game-changer in the clean energy transition. However, significant hurdles high cost, infrastructure, and production methods kept it grounded. But the winds are shifting. Driven by urgency for climate action, technological advancements, and very importantly government support, hydrogen is finally taking off.

The hydrogen industry actively adapts to a rapidly evolving regulatory environment, shifting global policies, geopolitical forces, new technologies, and ongoing leanings gleaned from project implementation.

In our constant pursuit of a fully de-carbonized world by 2050, the significance of hydrogen in transitioning to a net-zero state is increasingly getting clear.

Low-emission hydrogen production is poised to grow massively by 2030 despite cost challenges in deployment. The number of announced projects for low-emission hydrogen production is rapidly expanding as well hydrogen investments, market potential, projects globally.

The global hydrogen market is valued at USD 242.7 billion in 2023 and is projected to reach USD 410.6 billion by 2030. This projection indicates a compound annual growth rate (CAGR) of 7.8%.

Based on multiple sources, the current global pure hydrogen production (all types or all colors of H2) likely falls within the range of 75 to 95 million tonnes per year, with 3% increase on year on year. IRENA, places global production at around 75 MtH2/yr for pure hydrogen, with an additional 45 MtH2/yr as part of gas mixes [IRENA Hydrogen, 2022].

The global demand for hydrogen by 2030 is estimated to reach around 150 Mt (million metric tons) according to the International Energy Agency [2023 Hydrogen].

The clean hydrogen project pipeline is growing, with 1,418 projects announced across all regions (up from about 1,040 in the previous years), sums to USD 570 billion investments (previously USD 435 billion) and USD 39 billion (+26%) have passed FID (final investment decision).

45 million tons per annum (Mt p. a.) of clean hydrogen supply announced through 2030 (previously 38 Mt p. a.)

Of the total, 70% from renewable electrolysis and 30% from low carbon (fossil fuels with carbon capture, utilisation and storage (CCUS)

Electrolysis deployment globally has shown similar growth, already passing the 1 gigawatt (GW) mark in 2023 (up from 0.7 GW previously), with about 12 GW capacity having passed FID.

Europe shows the largest number of projects (540), followed by North America (248).

India shows the highest relative growth in investments of about 140%, corresponding to about 40 projects. The Middle East and China follow with about 80% and 50% growth in investments, respectively.

After a slow start, China has taken the lead on electrolyser deployment. In 2023, China’s installed electrolyser capacity was 1.2 GW – 50% of global capacity, with another new world record-size electrolysis project (260 MW), which started operation in 2023. The country accounts for more than 40% of the electrolysis projects that have reached FID globally in 2023 end.

All the data points by end of 2023.

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