According to the International Energy Agency's (IEA) annual Global Hydrogen Review 2024, the number of low-emissions hydrogen projects that have reached final investment decisions (FIDs) has doubled in the past year.
The global electrolyser capacity achieving FID now totals 20 GW, with 6.5 GW added in the last 12 months. Notably, China represents more than 40% of this new capacity and accounts for 60% of global electrolyser manufacturing capacity, reaching 25 GW annually—significantly surpassing global deployment averages.
In Europe, the number of FIDs for electrolysis projects has surged, quadrupling over the past year to exceed 2 GW, while India recorded a single FID for a 1.3 GW project.
IEA executive director Fatih Birol remarked on the strong investor interest in low-emissions hydrogen production but emphasized the necessity of securing buyers for these projects.
“Policymakers and developers must look carefully at the tools for supporting demand creation while also reducing costs and ensuring clear regulations are in place that will support further investment in the sector,” Birol noted.
The report highlights a notable discrepancy between government production goals and demand projections. While government targets aim for production of up to 43 million tonnes of hydrogen per year by 2030, demand targets only reach 11 million tonnes.
Although some policies, including carbon contracts for difference and sustainable fuel quotas for aviation and shipping, are contributing to demand growth, the report concludes that current progress in the hydrogen sector remains inadequate to meet climate objectives.
