Global Hydrogen Project Cancellations Signal Industry Reset
July 2025 has delivered a sobering reality check for the hydrogen sector, with over $10 billion in projects cancelled across six major economies.
The wave of reversals, spanning Australia, Germany, India, Spain, the UK, and the US, reflects growing doubts about hydrogen’s economic viability, especially for transport and industrial heat.
Key Details
- Australia: The flagship CQ-H2 export project was scrapped after Stanwell Corporation withdrew support, citing ballooning costs. Fortescue also retrenched its hydrogen division, cutting 90 roles and scaling back ambitions.
- Germany: ArcelorMittal abandoned plans for hydrogen-based green steel plants in Bremen and Eisenhüttenstadt, while E.ON cancelled its Essen hydrogen facility and exited the H₂ Ruhr pipeline.
- UK: Air Products withdrew from its £2 billion green hydrogen import terminal at Immingham, citing lack of subsidy support.
- India & Spain: SECI terminated its ₹2 billion green hydrogen hub tender, and Repsol’s Puertollano project collapsed due to technical and financial hurdles.
- US: BP, ExxonMobil, and Cleveland-Cliffs all paused or cancelled hydrogen ventures amid shifting policy and market conditions.
Collectively, these cancellations represent over 1 million tonnes/year of lost hydrogen production capacity.
What It Means for the Hydrogen Economy
This isn’t just a bad month, it’s a strategic inflection point. The cancellations highlight economic fragility, policy dependency, and technology mismatch.
Rather than spelling doom, this shakeout may force the sector to refocus on viable niches like green ammonia, synthetic fuels, and industrial clusters with captive demand.
It also underscores the need for realistic demand modelling, firm offtake agreements, and cost-down innovation.
Hydrogen isn’t dead but the hype bubble has burst. What survives will be leaner, smarter, and better aligned with economic fundamentals.
