Global Hydrogen Industry Surpasses $110 Billion in Investment as Over 500 Projects Reach Maturity
The global clean hydrogen sector has achieved a significant milestone, with over $110 billion in committed investments across more than 500 projects worldwide that have reached Final Investment Decision (FID), are under construction, or are already operational. This marks a $35 billion increase since the previous year, reflecting the sector’s robust growth trajectory.
According to the Hydrogen Council’s inaugural Global Hydrogen Compass report, co-authored with McKinsey & Company, the clean hydrogen industry has experienced an average year-over-year investment growth rate of 50% since 2020. This report provides a comprehensive analysis of the industry’s progress, highlighting key developments and emerging trends.
Key Highlights:
- Investment Growth:The clean hydrogen sector has attracted over $110 billion in committed investments, with more than 500 projects worldwide reaching maturity. This represents a $35 billion increase from the previous year, underscoring the growing confidence in hydrogen as a pivotal component of the global energy transition.
- Project Pipeline:Since 2020, more than 1,700 hydrogen projects have been announced globally, a 7.5-fold increase. Approximately 50 projects have been publicly cancelled in the past 18 months, representing about 3% of the total pipeline. These cancellations primarily involve early-stage renewable hydrogen ventures, reflecting the industry’s maturation and focus on viable projects.
- Supply and Demand Dynamics:Total committed hydrogen production capacity now exceeds 6 million tonnes per year (mtpa), with 1 mtpa already operational. The current project pipeline could support up to 9-14 mtpa of clean hydrogen capacity by 2030, contingent upon the realization of demand. Approximately 3.6 mtpa of binding offtake agreements have been secured, indicating a growing market for hydrogen.
- Regional Leadership:China leads globally with $33 billion in committed investments and over 50% of global renewable hydrogen production capacity. North America follows with $23 billion in investments, accounting for 85% of global low-carbon hydrogen production. Europe ranks third with $19 billion in committed investments and is expected to account for nearly two-thirds of global hydrogen demand by 2030.
Industry Perspectives:
Jaehoon Chang, Vice-Chair of Hyundai Motor Group and Co-Chair of the Hydrogen Council, commented:
“The Global Hydrogen Compass report sends a strong message: our industry has entered the next chapter of build-out, moving from ambition to delivery. With more than 500 projects advancing past FID and investment commitments now exceeding $110 billion, we are seeing tangible proof of progress.”
Sanjiv Lamba, CEO of Linde and Co-Chair of the Hydrogen Council, added:
“The industry has made strong progress over the past five years, demonstrating its ability to innovate and scale. The Global Hydrogen Compass report shows we are now at a pivotal juncture: accelerating market creation and securing binding offtake agreements must become the priority to ensure today’s projects deliver real impact.”
Ivana Jemelkova, CEO of the Hydrogen Council, stated:
“Bringing together direct perspectives from global CEOs, robust industry data, and insights from some of the world’s key hydrogen projects, our inaugural Global Hydrogen Compass report shows the industry’s steady growth trajectory over the last five years and provides the clarity and confidence businesses, investors, and policymakers need as we enter the next phase of build-out.”
About the Global Hydrogen Compass:
The Global Hydrogen Compass is the Hydrogen Council’s new annual publication tracking the progress and priorities of the global hydrogen industry. Building on the Council’s Hydrogen Insights series launched in 2021, it offers a clear, data-driven view of the sector’s evolution. Authored by the Hydrogen Council in collaboration with McKinsey & Company, the report combines comprehensive industry data with proprietary insights from Hydrogen Council members, direct perspectives from global CEO leaders, and lessons learned from key hydrogen projects worldwide. It represents a collaborative effort to provide an authoritative and holistic reference point for decision-makers across business, policy, and investment.
About the Hydrogen Council:
The Hydrogen Council is a global CEO-led initiative with a united vision and long-term ambition for hydrogen to accelerate the energy transition. It brings together some 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 startups as well as investors, the Council’s membership represents some $9 trillion in market capitalization, 7.1 million in FTEs, and some $6.4 trillion in revenues.
The Council is committed to unlocking the potential of hydrogen for decarbonization, energy security, industrial competitiveness, and technological innovation as drivers for sustainable growth, creating quality jobs, and delivering social value. Using its global reach to advance collaboration between industry, governments, investors, and civil society, the Council works to accelerate the deployment of hydrogen ecosystems around the world. It also supports the development of international safety and sustainability standards, paving the way for the deployment of reliable hydrogen solutions at scale.
