IEA’s Global Hydrogen Review 2024 reveals that projects are growing as policy support races to catch up.

A wave of new projects shows the continued momentum for low-emissions hydrogen despite challenges due to regulatory uncertainties, persistent cost pressures and a lack of incentives to accelerate demand from potential consumers, the new IEA report says.

With the number of projects that have reached final investment decision doubling in the past 12 months, today’s global production of low-emissions hydrogen could increase fivefold by 2030, and if all announced projects are realised worldwide, total production could reach almost 50 million tonnes a year by the end of this decade.

Despite new project announcements, installed capacity for electrolysers and low-emissions hydrogen volumes remain low as developers wait for clarity on government support before making investments. Uncertainty around demand and regulatory frameworks mean most potential production is still in planning or early-stage development, with some larger projects facing delays or cancellations due to these barriers along with permitting challenges or operational issues.

The report highlights a gap between government goals for production and demand. Production targets set by governments worldwide add up to as much as 43 million tonnes per year by 2030, but demand targets only total just over a quarter of this, at 11 million tonnes by 2030. Some government policies are already in place to stimulate demand for low-emissions hydrogen and hydrogen-based fuels. Examples, such as carbon contracts for difference and sustainable fuel quotas for aviation and shipping, are triggering action on the industry side, leading to an increase in signed agreements between producers and commercial consumers. However, the progress made in the hydrogen sector so far is not sufficient to meet climate goals, the report finds.

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