Low-emission hydrogen production projects are expected to grow by 2030 despite project delays and cancellations, the International Energy Agency (IEA) said in its latest Global Hydrogen Review, 2025 edition.
The report highlights developments in emerging low-emission hydrogen technologies.
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According to the report, global hydrogen demand reached nearly 100 million tonnes in 2024, a 2% increase from 2023, aligning with overall energy demand growth.
Most of this demand, however, is being met through hydrogen produced from fossil fuels without emissions capture.
Traditional sectors such as oil refining and industry remain the largest consumers, as fossil-fuel-based hydrogen remains cheaper due to declining natural gas prices and rising electrolyser costs.
The report, however, anticipates the price gap with low-emission hydrogen to narrow by 2030 due to declining technology costs.
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By GlobalDataAccording to the report, low-emission hydrogen uptake is not meeting expectations due to high costs, demand, and regulatory uncertainty, as well as slow infrastructure development.
Announced projects suggest low-emission hydrogen output could reach 37 million tonnes per annum (mtpa) by 2030, down from a potential of 49mtpa estimated last year.
Nonetheless, by the end of the decade, the production of low-emission hydrogen is anticipated to grow significantly.
Projects that are operational, under construction, or have reached a final investment decision (FID) are projected to increase more than fivefold, reaching over 4mtpa by 2030.
Effective demand policies could bring an additional 6mtpa that will be operational by 2030.
IEA executive director Fatih Birol said: “Investor interest in hydrogen jumped at the start of this decade thanks to its potential to help countries deliver on their energy goals.
“The latest data indicates that the growth of new hydrogen technologies is under pressure due to economic headwinds and policy uncertainty, but we still see strong signs that their development is moving ahead globally.
“To help growth continue, policy makers should maintain support schemes, use the tools they have to foster demand, and expedite the development of necessary infrastructure.”
According to the report by the IEA, China continues to lead in electrolysers deployment, accounting for 65% of global low-emission hydrogen capacity that is operating or awaiting an FID.
This year’s review places focus on Southeast Asia, which is identified as an emerging hydrogen market.
The announced projects suggest production in the region could scale from 3,000 tonnes per annum (tpa) in 2024 to 430,000tpa by 2030.
However, realising this potential will require faster deployment of renewables, targeted policies, and expansion of pilot projects.
