#USA #Brussels #Hydrogen Council #Hydrogen Sector #Global Investments

The clean hydrogen industry is at a pivotal point, with investment levels surging past 110 billion dollars across more than 500 projects worldwide. This comes as a report from the Hydrogen Council, in collaboration with McKinsey & Company, reveals that committed investments have increased by 35 billion dollars compared to last year. Since 2020, the clean hydrogen sector has experienced remarkable growth, averaging an annual investment increase of 50%. As the industry advances, the count of projects has skyrocketed, with more than 1,700 hydrogen-related initiatives announced globally, marking a 7.5-fold increase over five years. However, the sector has also faced some setbacks, with around 50 projects, roughly 3% of the pipeline, being publicly canceled in the last 18 months. These cancellations primarily involved early-stage renewable hydrogen initiatives, highlighting the natural attrition within the industry. The increasing investment reflects not only robust projects but also an ongoing refinement process that prioritizes viable options while phasing out less promising ones. Looking at supply dynamics, the total committed capacity now exceeds 6 million tonnes per annum (MTPA), with around 1 million already operational. This current project backlog indicates that the sector could potentially deliver between 9 and 14 MTPA of clean hydrogen by 2030, given that demand materializes in line with projections. Currently, approximately 3.6 MTPA of firm sales have been secured, suggesting a significant gap yet to be filled to achieve expected growth. Distinct regions are shaping the global investment landscape: China leads with 33 billion dollars and is responsible for over half of the world's renewable hydrogen capacity. North America follows suit with 23 billion dollars, contributing to 85% of the global low-carbon hydrogen production. Europe stands third, having committed 19 billion dollars while anticipated to account for nearly two-thirds of global hydrogen demand by 2030. The Global Hydrogen Compass serves as a crucial tool in tracking the progression of the hydrogen industry. It combines comprehensive industrial data with insights from industry CEOs and notable hydrogen projects. In this challenging environment, 74% of surveyed CEOs report stable or increasing investment demand, and a resounding 97% believe hydrogen is vital for decarbonizing hard-to-abate sectors. The urgency for supportive policies and effective implementation is widely recognized among industry leaders to harness hydrogen's full potential and ensure a clean, resilient energy future. Jaehoon Chang, Vice President of Hyundai Motor Group and Co-Chair of the Hydrogen Council, emphasizes the importance of transitioning from ambition to tangible outcomes, highlighting the industry's readiness for this next chapter. Reinforcing collaboration between businesses and governments is deemed essential to establish frameworks and partnerships necessary for advancing hydrogen initiatives. As global stakeholders align on the clear public policies that will drive demand for hydrogen, the industry stands on the precipice of significant growth. Ivana Jemelkova, CEO of the Hydrogen Council, underscores the necessity for clarity and confidence in the industrial state, facilitating decisive steps into this new phase. The Global Hydrogen Compass, an annual publication launched to monitor the hydrogen industry’s priorities and progress, integrates substantial industrial insights with strategic outlooks from global leaders, marking a definitive shift toward accelerated development for the hydrogen landscape. For interactive access to current data, dynamic dashboards, and global mappings, stakeholders can visit the dedicated website: compass.hydrogencouncil.com. The Hydrogen Council remains a global initiative uniting executives under a shared commitment to accelerating the hydrogen transition, comprising around 140 companies from over 20 countries across the Americas, Europe, Africa, the Middle East, and Asia-Pacific.