IEA – Global Hydrogen Review, 2024

Global demand for hydrogen increased by 2.5% in 2023, reaching 97 million tonnes, with the majority still being produced from fossil fuels. However, there is a growing trend towards low-emissions hydrogen production, which could potentially reach 49 million tonnes per year by 2030. Electrolysis projects are mainly driving this growth, with a significant increase in announced capacity. The number of projects that have reached final investment decisions has also doubled compared to the previous year, with a focus on electrolysis and fossil fuels with carbon capture technology. Despite some progress, the hydrogen sector is still in its early stages, with many projects in the planning or early development phases. To achieve the full potential of the project pipeline, the sector would need to grow at an unprecedented rate of over 90% annually. Challenges faced by projects include unclear demand, financing difficulties, regulatory uncertainties, and operational issues. Delays and cancellations of projects are occurring, posing a risk to the development of the sector.