Clean Hydrogen Faces Reality Check as Global Production Projections Shrink
A new report from the International Energy Agency (IEA) has cast a shadow over the clean hydrogen industry, highlighting cancellations and delays of major projects in key markets such as the US and Europe. According to the IEA's 2025 assessment, expectations for annual clean hydrogen production by 2030 are shrinking for the first time.
As of 2025, approximately one million metric tons of low-emissions hydrogen were produced annually, accounting for less than 1% of total hydrogen production. The IEA had previously projected that global production would reach 10 million metric tons by 2030 in its Global Hydrogen Report last year. However, the latest numbers indicate a significant slowdown.
"This is a wake-up call for the industry," said Maria van der Hoeven, former executive director of the IEA and current chair of the World Business Council for Sustainable Development's (WBCSD) Energy Transition Committee. "The market needs to adapt quickly to changing circumstances, including shifts in government policies and investor sentiment."
In the US, changes to key tax credits and cuts in support for renewable energy have led to a significant slowdown in clean hydrogen projects. The European Union has also seen delays in major initiatives, with some projects facing cancellations due to rising costs and declining investor confidence.
Despite these challenges, there are bright spots for the industry. China, which has been investing heavily in clean hydrogen production, is expected to continue its growth trajectory. New markets such as India and Southeast Asia could soon become crucial for the industry's expansion.
"The IEA report highlights the need for greater policy support and investor confidence to drive the transition to clean hydrogen," said Dr. Fatih Birol, executive director of the IEA. "We must work together to create a stable and favorable environment for this emerging sector."
The clean hydrogen industry has been touted as a key player in the global energy transition, with potential applications ranging from agriculture and chemicals to aviation and long-distance shipping. However, the current reality check serves as a reminder that the path to widespread adoption will be complex and challenging.
As the world's attention turns to the 2025 assessment, stakeholders are left wondering what the future holds for clean hydrogen. Will governments and investors step up their support, or will the industry continue to face headwinds? Only time will tell.
Background:
The IEA has been tracking global hydrogen production since its inception in 1974. The agency's Global Hydrogen Report provides a comprehensive assessment of the industry's progress and prospects.
Additional Perspectives:
Industry experts point out that the current slowdown is not unique to clean hydrogen, but rather part of a broader trend affecting the energy sector as a whole. "The transition to low-carbon fuels will be bumpy, but it's essential for meeting our climate goals," said Dr. Mark Jacobson, director of the Atmosphere and Energy Program at Stanford University.
Current Status:
As of 2025, global clean hydrogen production stands at approximately one million metric tons annually. The IEA projects that this number will continue to grow, albeit at a slower pace than previously anticipated.
Next Developments:
The IEA's 2025 assessment serves as a wake-up call for the industry, highlighting the need for greater policy support and investor confidence. As governments and investors reassess their strategies, the clean hydrogen industry will face new challenges and opportunities in the years to come.
*Reporting by Technologyreview.*
