Global hydrogen investments have surpassed $570 billion in announced projects through 2030, underscoring growing confidence in the sector’s decarbonization potential. Yet only $120 billion (21%) has reached final investment decision (FID), reflecting persistent uncertainty around offtake agreements, permitting, and infrastructure readiness.
According to the Hydrogen Council’s Global Hydrogen Compass 2025, global demand is expected to reach 35 Mt by 2030, up from about 95 Mt today (mostly for refining and ammonia), provided policies accelerate end-use adoption in heavy industry, shipping, and aviation. Demand for low-carbon hydrogen could rise tenfold if governments close cost gaps with carbon pricing and contracts-for-difference.
Europe leads with $230 billion in planned spending, driven by the EU’s Fit for 55 targets and national hydrogen strategies. North America follows at $180 billion, buoyed by the U.S. Inflation Reduction Act’s production tax credits of up to $3/kg. Asia-Pacific—particularly Japan, Korea, and Australia—is focusing on import value chains and large-scale ammonia projects.
However, investment concentration in a few flagship hubs leaves other regions trailing. Latin America and Africa, despite abundant renewables, account for less than 5% of announced capacity due to financing hurdles and limited infrastructure.
While over 40 countries have published hydrogen roadmaps, only a handful offer bankable revenue support. Contracts-for-difference in Germany and the U.K., alongside the U.S. 45V credits, are helping early movers. In contrast, project developers in emerging markets cite policy uncertainty and slow permitting as key barriers.
The Council notes that bringing forward $200–300 billion in FIDs by 2027 is critical to achieve 2030 cost-parity targets. Without stronger policy signals, as much as 60% of announced capacity could remain stalled.
Supply Chain and Infrastructure Bottlenecks
Electrolyzer manufacturing is scaling—global nameplate capacity is projected to reach 45 GW by 2026—yet supply chains for stacks, membranes, and rare metals remain fragile. Logistics for hydrogen carriers such as ammonia and liquid hydrogen also lag demand forecasts. Port terminal retrofits and dedicated shipping fleets will require long-lead investment.
Transport pipelines and storage caverns are another pressure point. Only 15% of required hydrogen pipeline infrastructure for 2030 is under development, creating risks for cross-border trade.
Steelmaking and chemicals remain the largest near-term growth markets, with hydrogen-based direct reduced iron (H2-DRI) projects targeting 25 MtCO₂ annual abatement by 2030. Heavy transport—particularly shipping—could add 5–7 Mt/year if bunkering hubs materialize. Aviation remains marginal until synthetic fuels achieve cost reductions.
Hydrogen’s trajectory in 2025 reflects a sector in transition: large ambitions tempered by slow project maturation. Converting announced investments into operational assets will determine whether hydrogen becomes a mainstream decarbonization tool this decade.
Stay updated on the latest in energy! Follow us on LinkedIn, Facebook, and X for real-time news and insights. Don’t miss out on exclusive interviews and webinars—subscribe to our YouTube channel today! Join our community and be part of the conversation shaping the future of energy.
