Global Hydrogen Industry Reports $75 billion in Committed Capital
On 17 September, the Hydrogen Council released its latest report, Hydrogen Insights 2024. It highlights the global clean hydrogen project pipeline is growing and maturing. In the past four years, committed capital for projects reaching final investment decision (FID) has increased sevenfold.
According to the Hydrogen Council‘s latest analysis of more than 1,500 projects worldwide, the number of projects reaching the FID has sharply increased. At the same time, the pace and scale of deployment need to accelerate dramatically to meet global climate goals.
The global clean hydrogen project pipeline is growing and maturing
The Hydrogen Insights 2024 report reveals that while the global project pipeline has grown by seven since 2020 from 228 projects to 1,572 projects, as of May 2024, it has also matured, with a strong focus on advancing projects towards execution. Most notably, clean hydrogen projects that reached FID have also seen a seven-fold increase in committed investment, growing from approximately USD 10 billion across 102 projects in 2020 to some USD 75 billion across 434 projects in 2024.
The most recent data from October 2023 to May 2024 further underscores a clear shift from project planning to implementation. Total announced investments through 2030 have increased by approximately 20% – from USD 570 billion to USD 680 billion. The most notable growth has occurred in the more advanced stages of project development, with investments past FID growing by a remarkable 90%, followed by a 30% increase in front-end engineering design (FEED) stage projects.
This clear shift across the global project pipeline from announcements to implementation is coupled with natural attrition that fosters industry maturation by eliminating less viable projects and prioritising those with the highest potential, a pattern also seen in the early stages of other clean energy industries such as wind and solar.
The latest Insights report shows that the hydrogen industry is walking the talk
Jaehoon Chang, President and CEO of Hyundai Motor Company and Co-Chair of the Hydrogen Council, said: “The seven-fold increase in committed capital for hydrogen projects reaching FID over the past four years demonstrates the industry’s progress. We are pleased to see the industry walking the talk at this critical transitional moment, as evidenced in the latest Insights report. Moreover, further action is needed to ensure an accessible and affordable hydrogen supply, enabling the widespread adoption of hydrogen.”
Despite progress, the hydrogen sector, like other clean energy industries currently, faces macroeconomic headwinds including rising inflation and interest rates and geopolitical tensions affecting energy markets. Sector-specific issues such as regulatory uncertainty and increasing costs for renewable power and electrolysers have led to project delays, particularly for renewable hydrogen projects.
Ivana Jemelkova, CEO of the Hydrogen Council, said: “This report sends a clear message: hydrogen is happening. Since hydrogen is a reality in the energy transition, it’s time to drive significantly more investment by 2030 to meet our mid-century targets. Equipped with concrete lessons learned from the past four years, we must urgently address challenges in key markets and create a more favourable environment for project execution.”
Sanjiv Lamba, CEO of Linde and Co-Chair of the Hydrogen Council, said: “Realising hydrogen’s full climate and socio-economic potential requires a united effort from governments and industry. With a supportive regulatory framework and targeted incentives, investors will have the certainty they need to move projects to FID – ultimately contributing to achieving global climate targets.”
About Hydrogen Insights and Hydrogen Council
Hydrogen Insights is the Hydrogen Council’s regularly published perspective on the evolution of the hydrogen industry. It summarises the current state of the global hydrogen sector and actual hydrogen deployment. Authored by the Hydrogen Council in collaboration with McKinsey & Company, the report draws on Hydrogen Council members’ public information and proprietary data. It represents a collaborative effort to share an objective, holistic, and quantitative perspective on the status of the global hydrogen ecosystem.
The Hydrogen Council is a global CEO-led initiative with a united vision and long-term ambition for hydrogen to accelerate the clean energy transition. It brings together 140 companies from 20 countries across the Americas, Europe, Africa, the Middle East, and Asia Pacific. Spanning the entire value chain and including large multinationals, innovative start-ups, and investors, the Council’s membership represents some $9 trillion in market capitalization, 6.8 million in FTEs and some $6.4 trillion in revenues.
The Council is committed to unlocking the sustainability potential of clean hydrogen, fostering business and technological innovation as drivers for sustainable growth, creating quality jobs and delivering social value. Using its global reach to promote collaboration between industry, governments, investors, and civil society, the Council provides insights on and pathways for accelerating the deployment of hydrogen ecosystems worldwide.
It also supports the development of international safety and sustainability standards, paving the way for deploying reliable hydrogen solutions at scale.
