The hydrogen economy is attracting unprecedented capital, yet its most promising industrial customers are hesitating over the cost of switching fuels.
Global investment in clean hydrogen projects has exceeded $130 billion. Governments are increasingly viewing the fuel not only as a tool for decarbonization but also as a way to strengthen energy security and industrial development.
Based on data from Reuters
According to the Hydrogen Council, funding has been directed to more than 570 projects, which are expected to produce a combined 6.9 million tonnes of clean hydrogen annually. These estimates appear in the “Global Hydrogen Compass – 2026” report, released ahead of the meeting of energy ministers on hydrogen in Tokyo.
Approximately 90% of the announced projects are already under construction or operational. China accounts for the largest share of global renewable hydrogen production capacity. Europe ranks second in terms of investment, while the United States leads in the deployment of low-carbon hydrogen.
Hydrogen demand could grow by 2030
Existing government measures could support demand for 6 million tonnes of hydrogen annually by 2030. A further 5 million tonnes of demand could emerge if governments fully implement already approved industry support programs and regulations.
At the same time, the hydrogen industry is facing serious challenges. High production costs and insufficient demand for low-carbon fuel have forced green hydrogen developers to cut investment or cancel some projects in various countries.
High costs are holding back industry growth
Particular difficulties have emerged in sectors previously considered the most promising for green hydrogen use. These include steel production and long-distance transport.
For many companies, switching to low-carbon fuel in these industries has proved too expensive. As a result, some potential customers are postponing long-term contracts, while investors are reassessing plans for new hydrogen capacity.
Despite these obstacles, the scale of the investment already announced shows that clean hydrogen remains an important component of the global energy strategy. Further market development will depend on lower production costs, stable demand and consistent government support.
