Global hydrogen demand is entering a decisive growth phase, yet execution continues to lag ambitions. The report projects a 50 per cent rise in total demand from ~100 Million Metric Tons Per Annum (MMTPA) in 2024 to 150 MMTPA by 2030, with clean (low-emissions) hydrogen expected to contribute nearly 45 per cent of supply in the International Energy Agency’s Net-Zero Emission pathway. However, GH still accounts for less than 1 per cent as of 2024. Further, only 9 per cent of announced projects have reached final investment decisions, with progress particularly weak across emerging markets (excluding China). Offtake fragility, high costs of capital and infrastructure gaps are constraining the momentum. The core message is therefore as follows: although the opportunity is large and urgent, the near-term pathway requires disciplined prioritisation of “drop-in” uses (refining, ammonia, methanol), availability of low-cost renewables with round-the-clock characteristics, and bankable demand creation mechanisms to convert announcements into assets.
Scaling up green hydrogen continues to be a significant challenge, primarily due to the high cost of green hydrogen, which constrains offtake and slows market adoption. Nevertheless, declining renewable electricity and storage costs as well as falling electrolyser prices are improving project economics. Despite this progress, several structural challenges persist. These include shortages of specialised and skilled manpower, limited infrastructure, knowledge and technology gaps, high operational costs, and difficulties in accessing affordable finance. In many countries, the absence of clear and dedicated green hydrogen policies further exacerbates investment uncertainty and hinders large-scale deployment.
Addressing these barriers will require enhanced public and private investment, targeted government incentives and policy support, continued engineering and technological improvements to reduce costs, and focused workforce development initiatives. This study, “World Green Hydrogen Outlook: GHIC Annual Flagship Report” published by International Solar Alliance (ISA) aims to provide a strategic blueprint for advancing green hydrogen deployment by closing the gap between ambition and implementation. It offers insights on market creation, cost competitiveness, and infrastructure, while examining challenges such as high capital costs, fragmented demand, and technology constraints. It guides policymakers, investors, and industry leaders in building resilient ecosystems through integrated hubs, innovative financing, and manufacturing localisation. It also highlights the importance of digital enablers such as artificial Intelligence and advanced materials in improving efficiency and reducing costs.
Access the report here
