Clean Hydrogen Faces Reality Check as Production Projections Shrink
The International Energy Agency (IEA) has released a report highlighting the challenges facing clean hydrogen production, a key player in the global energy transition. According to the report, major projects are being cancelled or delayed, particularly in the US and Europe, due to changes in tax credits and support for renewable energy.
As of 2025, about one million metric tons of low-emissions hydrogen are produced annually, which is less than 1% of total hydrogen production. The IEA had previously projected that global production would reach 10 million metric tons by 2030, but these expectations are now shrinking for the first time.
"This is a wake-up call for the industry," said Fatih Birol, Executive Director of the IEA. "We need to address the challenges facing clean hydrogen production and ensure that it can play its full role in reducing emissions."
The slowdown in clean hydrogen production is particularly evident in the US, where changes to key tax credits have reduced support for renewable energy projects. In Europe, several major projects have been cancelled or delayed due to financial constraints.
However, there are also bright spots for the industry. China has seen significant growth in clean hydrogen production, and new markets could soon become crucial for growth. "China's experience shows that with the right policies and investments, clean hydrogen can be a game-changer," said Birol.
The IEA report highlights the need for governments and industries to work together to address the challenges facing clean hydrogen production. This includes improving the efficiency of low-emissions production methods and reducing costs to make them more competitive.
As the world continues to transition towards cleaner energy sources, the future of clean hydrogen remains uncertain. However, with renewed efforts from governments and industries, it is possible that this green fuel can still play a key role in reducing emissions.
Background: Hydrogen has been touted as a master key for the energy transition due to its potential to be made using low-emissions methods. It could play a crucial role in cleaning up industries such as agriculture, chemicals, aviation, and long-distance shipping.
Additional Perspectives:
"The IEA report highlights the need for greater investment in clean hydrogen production," said Dr. Maria van der Hoeven, former Executive Director of the IEA. "We must ensure that this green fuel can be produced at scale and at a cost that is competitive with fossil fuels."
"Clean hydrogen has the potential to transform industries such as transportation and power generation," said Dr. Amory Lovins, Co-Founder of Rocky Mountain Institute. "However, we need to address the challenges facing its production and ensure that it can be produced sustainably."
Current Status: The IEA report highlights the need for governments and industries to work together to address the challenges facing clean hydrogen production. This includes improving the efficiency of low-emissions production methods and reducing costs to make them more competitive.
Next Developments: As the world continues to transition towards cleaner energy sources, the future of clean hydrogen remains uncertain. However, with renewed efforts from governments and industries, it is possible that this green fuel can still play a key role in reducing emissions.
*Reporting by Technologyreview.*
