Global investment in clean hydrogen has surpassed $130 billion, with more than 570 projects now representing 6.9 tonnes per annum (Mtpa) of committed annual production capacity, according to new analysis from the Hydrogen Council.
The organisation’s Global Hydrogen Compass 2026 report, produced with McKinsey & Company, suggests the sector is increasingly moving beyond early-stage commitments and into delivery. Around 90% of committed projects are either under construction or already operational, while global operating capacity has almost doubled over the past year and is expected to double again as projects currently being built enter service.
The report argues that hydrogen is also taking on a broader strategic role as governments place greater emphasis on energy security, industrial resilience and long-term economic competitiveness.
The role of hydrogen remains central to efforts to decarbonise hard-to-abate sectors, but the Hydrogen Council said it is increasingly being viewed as a complement to electrification and renewable power, with potential applications in balancing energy systems and strengthening industrial energy security.
China leads
China remains the world’s largest renewable hydrogen market, accounting for more than half of global committed renewable hydrogen capacity and 90% of new operational capacity added worldwide since 2025.
Europe has moved into second place, leading globally in the number of projects and recording a 35% increase in relative investment since 2025. Meanwhile, the USA remains the dominant market for low-carbon hydrogen, accounting for approximately three-quarters of global committed capacity in low-carbon hydrogen and ammonia.
However, the report also highlights a growing divide between markets with strong policy and infrastructure frameworks and those where projects remain stalled.
Existing policies could unlock around 11 million tonnes per year of clean hydrogen demand by 2030, according to the analysis, but only around six million tonnes has so far been firmly underpinned by enacted and enforced policy measures. Closing the remaining gap will require governments to translate existing commitments into practical incentives, mandates and market signals.
What’s next?
The Hydrogen Council argues that policymakers must now focus on creating clearer demand through measures including enabling incentives, sector mandates and effective carbon pricing. Industry, meanwhile, faces the challenge of reducing costs and developing the infrastructure required to scale production and consumption.
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Discussing the context of the report’s findings, Jaehoon Chang, vice-chair of Hyundai Motor Group and co-chair of the Hydrogen Council, said: The debate has shifted from whether hydrogen can deliver to how fast different countries choose to move. Although the pace varies by market, the principle is the same: identify where hydrogen creates the most value, build the ecosystem around it and prove it works. This year’s Compass highlights a clear lesson: wherever countries deploy hydrogen solutions suited to their context and support them with policy, competitive hydrogen ecosystems are taking hold. By learning from those examples, we can build on that momentum faster and with greater confidence.”
And Ivana Jemelkova, CEO of the Hydrogen Council, also highlighted how key the 2026 analysis is to the hydrogen industry.
“Decision-makers need both robust market data and practical experience from those delivering projects on the ground. Global Hydrogen Compass 2026 complements the IEA’s Global Hydrogen Review by bringing together the collective perspective of industry leaders. Together, they provide a more complete picture of where the industry stands today and the practical actions needed to accelerate deployment,” emphasised Jemelkova.
