Facts and figures
Regional progress
Leaders' Perspective
First-wave lessons
Emerging Ecosystems
At a pivotal moment for energy, hydrogen is receiving renewed attention for its ability to help address some of the hardest problems facing our economies and societies: energy security, food system resilience, industrial growth and deep decarbonization. While reducing emissions remains fundamental – and core to the Hydrogen Council’s mission since its inception – additional drivers of investment have gained sharply in recognition and relevance, accelerated by recurrent energy crises, geopolitical shocks and market volatility. We are not alone in seeing this shift; it is a recurring theme in our conversations with other CEOs, and a clear message from the Compass.
As countries reduce dependence on narrow energy supply options and strengthen resilience, hydrogen becomes the indispensable partner to increased electrification and the growing use of renewables. It enables renewable power to be stored, transported and integrated across the energy system, helps manage variability and seasonality, and extends the reach of clean power into energy-intensive sectors such as steel, refining and fertilizers.
Around the world, the industry is moving. Committed investment in clean hydrogen has now reached $130 billion across more than 570 projects worldwide, representing 6.9 million tons per annum in committed capacity. Operational capacity has nearly doubled in the last 12 months alone, and global CEOs around the world remain focused on project delivery, with 70% of those surveyed for this report expressing continued or even increased investment appetite. We are proud of the investments being made today, and encouraged by the breadth of at-scale projects being delivered across our membership. You will find some of these illustrated throughout the report.
Importantly, the projects moving to construction and operation are concentrated where policy and infrastructure are the most robust – notably in China and Europe. China has identified hydrogen as a key strategic opportunity and is advancing rapidly in operational scale. Meanwhile, Europe has emerged as a primary demand center for clean hydrogen and its derivatives, showing encouraging year-on-year progress thanks to recent policy implementation in some countries. Full ecosystems are emerging on the back of viable business cases, shifting the debate from whether hydrogen could be produced and used at
scale to how fast different countries choose to move amidst geopolitical shifts. Chapter 4 highlights four such ecosystems where we see this in action.
The experience of these leading markets also points to the industry’s next challenge. Existing policies could unlock some 11 million tons a year of clean hydrogen demand by 2030. About 6 million tons of that demand is firm today, underpinned by enacted and enforced policy measures. The remaining 5 million tons does not need a technological breakthrough or a new strategy or pledge. It is waiting on the decisive and consistent delivery of existing policy commitments, such as the full transposition of RED III targets and implementation of robust carbon pricing mechanisms like ETS and CBAM in Europe. Every month of delay in implementing those measures is a month of investment that does not happen.
In our conversations with fellow CEOs across the Hydrogen Council, members have been consistently clear about what needs to happen next: urgent follow-through on policy implementation. Clear and predictable policies are essential to creating bankable demand, reaching final investment decisions, scaling hydrogen ecosystems, and delivering the solutions our world urgently needs.
These are the themes explored throughout this edition of the Global Hydrogen Compass. What this report makes clear is that hydrogen is no longer a future bet; it is being built now. However, unlike renewables, hydrogen is not a simple plug-and-play solution – it requires a patient, deliberate build-up across multiple layers of the value chain. For this reason, moving from commitments to full-scale deployment depends fundamentally on the stability of enabling policies. By building on what is working and executing on the commitments already made, we can accelerate hydrogen’s role in delivering a clean, secure, competitive, and resilient energy future.
Vice Chair, Hyundai Motor Group
CEO, Air Liquide
North America remains the global leader in low-carbon hydrogen, holding about 2.9 Mtpa of committed low-carbon capacity (over 75% of the global total) although curtailment of the 45V tax credit originally put forth in the Inflation Reduction Act, coupled with challenges in accessing low-cost upstream renewable electricity in some regions, has limited renewable hydrogen deployment. The ~$26 billion in committed investment in the region is heavily concentrated in low-carbon projects that are the largest on average globally (~120 ktpa), reflecting a scale-oriented purpose-built approach to capture the industrial growth opportunity that clean hydrogen presents. The U.S. Gulf Coast sits at the center of this opportunity, where stable access to low-cost gas and existing and developing CCUS and domestic and export infrastructure combine with confirmed 45Q credits, making it the world’s lowest-cost low-carbon ammonia source (as low as $450/t post-45Q). Although growth will rely on further scaling CCUS infrastructure, these elements enable a regional ecosystem of projects advancing to delivery, with the first at-scale greenfield projects reaching FID, starting construction and coming online.
Europe’s reorientation toward targeted hydrogen deployment to address both energy security and decarbonization priorities has supported the region’s position as the second-largest region by committed hydrogen investment at approximately $30 billion, over half of which is dedicated to hydrogen end uses. Although projects remain comparatively small compared to those in China, Europe accounts for the most committed hydrogen projects globally, representing around 1Mtpa of committed capacity to date. Given Europe’s reliance on imports for a large share of its consumed energy (e.g., nearly 80% of natural gas consumption), Europe’s decarbonization ambitions are directly coupled with a renewed focus on energy security and resilience, given recent energy market disruptions. By 2030, around 5.7 Mtpa of clean hydrogen demand could emerge, supported primarily by decarbonization-focused policies like RED III alongside ETS and CBAM, subject to continued robust carbon price signals coming from the latter. The transposition of transport targets specifically is beginning to create bankable demand in refining, where established and proposed RED III penalties of up to €14/kg in some Member States (e.g., Germany) boost competitiveness. Implementation is still progressing unevenly across member states, and RED III industry targets remain stalled. Additional domestic supply, coupled with import capacity enabled by new infrastructure will be needed for the region to cost-effectively meet its potential demand, once solidified by further policy enactment.
China’s deliberate shift toward electrification where hydrogen is an extension of the renewable power system is reflected in the country accounting for the largest share of committed hydrogen investment at $44.5 billion, of which about $12 billion advanced to FID+ over the past year. This represents a total of ~1.9 Mtpa of committed hydrogen capacity. Deployment continues at pace, accounting for the majority of new operational electrolysis capacity this year, while scale and domestic competition have reduced electrolyzer prices by about 45% since 2020. Traction is broadening across equipment manufacturing, production, chemicals, mobility and exports, supported by the 15th Five-Year Plan’s explicit recognition of hydrogen as a new source of industrial growth and energy security, as well as an enabler for greater resilience and flexibility of the electricity system. Today’s demand remains predominantly domestic and driven by state support, although several projects are being positioned to export clean molecules.
With limited domestic production capacity (~40 ktpa committed capacity) but ambitious decarbonization targets and acute interest in bolstering energy security, Japan and Korea’s hydrogen investment is focused largely on distribution and end-use (over 90% of committed investment). Both countries are structurally import-dependent, with demand in Japan centered on low-carbon ammonia for power co-firing, largely sourced from the U.S. Gulf Coast so far, and supported by the Contracts-for-Difference mechanism, in addition to an emerging mobility ecosystem. The Korean Clean Hydrogen Portfolio Standard program’s ambitions have been curtailed from the original target of 3,000 GWh from hydrogen (2025, suspended) to the new 500 GWh target (2026) and the outlook for ammonia co-firing has been reduced from prior targets. However, home-grown hydrogen mobility ecosystems are also emerging, with early traction seen in deployment of new vehicles like Hyundai’s NEXO. A renewed focus on sourcing domestic clean hydrogen is also emerging although long-term ecosystem scaling likely depends on a combination of local production with securing imported molecules and building the import and trade infrastructure to land them, including via an emerging liquid hydrogen value chain.
With around 80% of its ammonia demand met either by imported liquid ammonia or ammonia synthesized from imported natural gas today, India has focused its efforts on reducing import dependence via a central government-supported push to grow domestic renewable ammonia production. Through initiatives like the National Green Hydrogen Mission’s (NGHM) Strategic Interventions for Green Hydrogen (SIGHT) auctions (whose first tranche awarded 724 ktpa of renewable ammonia, expected to displace approximately 25-30% of direct liquid ammonia imports), India is converting government-supported domestic renewable power into low-cost renewable ammonia. India is simultaneously positioning itself as an emerging exporter. Recent long-term offtake agreements between Indian producers such as ACME and Japanese buyers provide early evidence of export demand. These follow AM Green’s binding agreement with Uniper for up to 500 ktpa, one of the first large-scale renewable ammonia contracts between India and Europe, pointing to a widening set of export commitments. This momentum is reflected in CEOs surveyed for this report rating India, alongside China, as one of the two fastest accelerating geographies.
The Middle East is home to some of the largest committed individual hydrogen projects in the world, with approximately $11 billion committed across just 15 projects with a total of ~500 ktpa. However, the region saw limited new committed investment in the last 12 months (+$200 million), in part due to the majority of projects awaiting a more mature export-oriented offtake market. Nevertheless, low-cost renewable power, competitive access to financing, backing through national programs, and abundant natural gas enable globally competitive renewable and low-carbon hydrogen production costs, positioning the region as a key potential exporter (~$1.5 billion annual export opportunity by 2030).
The rest of the world represents broad but fragmented momentum with scale concentrated in a handful of large export projects. Export basins are emerging in Australia, Latin America and several African renewable hydrogen and ammonia corridors. Most of these geographies are earlier-stage, export-led, and contingent on a more established global trade network in order to establish contracted offtake and achieve scale.
RED III transport target transposition drives RFNBO uptake in refining, mobility applications
End to end complementary industrial and mobility ecosystems deploy in parallel, enabled by central and provincial support mechanisms
Low-cost, centrally supported domestic renewable ammonia to displace imports and enable future export
Emerging end-use demand not only in chemicals but also in maritime fuel and road transportation fuel is exemplified by the Kassø e-Methanol Project in Denmark, jointly owned by European Energy (51%) and Mitsui & Co., Ltd. (49%). The project demonstrates the transition from concept to operation as an operational e-methanol plant set to produce 42,000 tonnes a year, with 52.5 MW of electrolyzer capacity powered by the adjacent 304 MWp Solar Park Kassø. As an operating renewable methanol asset in a new derivative market, the project provides tangible early evidence that demand is beginning to scale beyond traditional hydrogen end-uses.
In partnership with Siemens Energy, Air Liquide is developing the world’s largest PEM electrolyzer to produce 200 MW of renewable hydrogen (~28,000t/yr) with a COD estimated in 2026. The aim of the project is to advance decarbonization of the Port-Jérôme industrial basin through its partnership with TotalEnergies and contribute to the development of low-carbon mobility with HysetCo.
The fully integrated renewable hydrogen-to-steel plant in Boden, Sweden will feature a 740 MW electrolyzer, direct reduced iron process, and electric arc furnaces to produce up to 2.5 mtpa of renewable steel by 2026. The plant achieves ~95% CO₂ emission reduction compared to traditional blast furnace methods and has plans to scale to ~5 mtpa by 2030. Stegra partners with leading technology partners such as SMS Group, Siemens, and thyssenkrupp Nucera to supply key plant components.
Description: Renewable hydrogen is creating new traded commodities and export value pools. The world’s largest green hydrogen plant (300km2), being built by NEOM Green Hydrogen Company (NGHC) exemplifies this development as a gigascale export project (FID $8.4 bn) with a 2.2 GW electrolyzer package powered by 4 GW of wind and solar, to produce up to 600 tonnes of hydrogen daily when operational. NGHC is an equal joint venture between Air Products, Acwa and NEOM, it is underpinned by an exclusive 30-year global offtake agreement with Air Products, which intends to ship the renewable ammonia worldwide (1.2 mtpa). This exclusive global offtake arrangement illustrates how a production asset can become a new tradable export commodity, supporting the creation of new export value pools.
Blue Point One illustrates world-scale, low-carbon ammonia production reaching final investment decision. The CF Industries / JERA / Mitsui joint venture (40% / 35% / 25%) has taken a final investment decision on a greenfield ATR-with-CCS ammonia plant, comprising a $3.7B facility together with CF Industries’ $0.55B scalable infrastructure and Linde’s $0.4B ASU (approximately $4.65B in total). The project has a nameplate capacity of 1.4 Mtpa of low-carbon ammonia (approximately 250 ktpa H2), will capture 95% of its CO2 and reduce well-to-gate emissions by more than 70% compared with conventional production. The project provides a clear example of the US Gulf converting its feedstock and infrastructure advantage into bankable low-carbon capacity to serve both the American heartland and export markets, including emerging Japanese energy demand. Construction is scheduled to begin in August 2026.
The Sinopec Kuqa Renewable Hydrogen Project in Xinjiang uses a roughly 300 MW solar PV array to power an electrolysis plant with 52 electrolysers, commissioned in Aug 2023 as the world’s largest solar-to-hydrogen facility at that time. It has been operating safely and steadily for three years, ranking first among Chinese enterprises in renewable hydrogen output. The site includes 270,000 cubic meters of on-site hydrogen storage and a pipeline transporting up to 28,000 cubic meters per hour to Sinopec’s downstream Tahe Refining & Chemical plant, where the hydrogen replaces fossil-based hydrogen in refining. Sinopec has since begun building a 30 ktpa renewable hydrogen project in Ordos, Inner Mongolia, and is developing an even larger renewable hydrogen project in Ulanqab. Accordingly, the Kuqa project serves as the core proof-of-concept demonstration underpinning Sinopec’s extensive renewable hydrogen rollout strategy across Northwest China.
A defining challenge is expanding hydrogen demand beyond legacy applications into new fuel markets. The Roadrunner project provides an example of this transition: a project under construction deploying Electric Hydrogen’s 100 MW modularized electrolyzer plant within Infinium’s e-fuels facility to produce eSAF and eNaphtha from waste CO2 and renewable hydrogen. The project demonstrates demand forming in e-fuels for aviation and in low-carbon plastics feedstocks, beyond legacy hydrogen uses. Financial backing from Breakthrough Energy Catalyst ($75M project equity) and Brookfield illustrates that offtake into these new fuels is now attracting serious project finance. Modular skidded pre-fabrication and self-performance of EPC by electrolyzer OEM (Electric Hydrogen) minimizes installed cost and enables rapid electrolyzer installation. Project Roadrunner is expected to be completed in 2027.
Dow and Linde are developing a net-zero carbon emissions integrated ethylene cracker and derivatives complex in Fort Saskatchewan, Alberta, Canada, using clean hydrogen and nitrogen supplied by a Linde-owned and operated world-scale air separation and autothermal reformer complex integrated with Linde’s existing operations. Topsoe is also involved in the project. Dow has confirmed a delay of up to two years for the chemicals complex due to the blue hydrogen supply, with commercial operation now targeted around 2029.
ATOME Energy, together with Casale, Clariant and Yara, and supported by a 145 MW round-the-clock renewable power purchase agreement from ANDE, is developing the Villeta green ammonia plant in Paraguay (Phase 1 of ATOME’s Paraguay platform), sized at around 120 MW of electrolysis, with commercial operation targeted around 2029 and Yara among its offtake partners.
The Holland Hydrogen project is a major renewable hydrogen initiative led by Shell, located in the Port of Rotterdam. Set to become Europe’s largest renewable hydrogen plant, it will produce 60 ton/day using a 200 MW electrolyzer powered by offshore wind. Engineering and construction are being executed by Worley and thyssenkrupp nucera. The hydrogen will be used for decarbonizing Shell’s refinery and regional industry.
The GET H2 project, located in Lingen, Lower Saxony, Germany, will connect to the Ruhr industrial region and underground hydrogen storage in Gronau-Epe via a dedicated 130 km pipeline network. Developed in phases, it has begun with the construction of 200 MW of electrolysis capacity in the mid-2020s and will expand to 300 MW by 2027. At full scale, the plant will produce up to 5.6 tonnes of green hydrogen per hour powered entirely by renewable electricity from North Sea offshore wind. It will enable Germany’s first large-scale public hydrogen network by repurposing existing natural gas pipelines, allowing multiple industrial offtakers to access supply.
Yara’s ammonia import terminal in Brunsbüttel began commercial operations on October 2, 2024. It is capable of handling up to 3 mtpa of clean ammonia—equivalent to about 530 ktpa of hydrogen and roughly 5% of Europe’s hydrogen target for 2030. The terminal is situated on the North Sea and Kiel Canal, a growing central hub for Germany’s hydrogen industry.
A major value of renewable hydrogen is resilience through long-duration storage that supports a renewable grid; the ACES Delta project provides a clear example of that role at scale. Leveraging available renewable energy resources in the western United States, the project is developed as one of the largest renewable hydrogen conversion and storage facilities in the United States. The first phase includes a 220 MW alkaline electrolyzer facility capable of up to 100 TPD of green hydrogen at full capacity stored in two salt caverns. The stored hydrogen is initially blended with natural gas and supplied to 840 MWs of CCGT using Mitsubishi Power’s hydrogen-ready M501JAC gas turbines, with an expected transition to 100% hydrogen operation by 2045. Chevron’s New Energies division secured a majority interest through the acquisition of Magnum Development from Haddington Ventures. Together with Mitsubishi Power’s technology and long-term service support, the project illustrates how long-duration storage supporting a renewable grid can enable highly renewable systems to remain reliable.
