The global pipeline for clean hydrogen projects has expanded to over 1,400, up from around 1,050 in January, according to the Hydrogen Council's Hydrogen Insights 2023 December Update. Among these projects, 1,000 aim for full or partial commissioning through 2030, representing an investment of approximately USD 570 billion in hydrogen value chains.
This marks an increase from the previous estimate of USD 435 billion. The announced projects collectively target 45 million tonnes of annual hydrogen production capacity by 2030, with 70% from renewable and 30% from low-carbon sources. As of October, over 3 million tonnes per year have received final investment decisions (FID).
Despite this growth, only 7% of announced clean hydrogen investments have progressed to FID. In Europe, which leads with over USD 190 billion in announced investments, the FID share is 4%, while North America stands at 15% (USD 10 billion) and China at 35% (USD 12 billion).
Global electrolysis capacity has surpassed 1 GW, with 400 MW added this year. Approximately 12 GW of electrolysis capacity has received FID.
The report highlights that the global hydrogen economy is advancing despite macroeconomic challenges. However, increased costs, including capital and renewable power, have raised the estimated cost of producing renewable hydrogen by 30%-65%, reaching USD 4.5-6.5 per kg. Projections indicate a decline to USD 2.5-4.0 per kg by 2030.
Sanjiv Lamba, CEO of Linde and co-chair of the Hydrogen Council, emphasized the importance of building on the current momentum for hydrogen to play a significant role in the energy transition. Lamba noted that achieving this goal requires the right regulatory frameworks and collaboration across the entire hydrogen value chain.
