The Hydrogen Council, representing 140 companies worldwide, revealed on Wednesday 18 September that the global pipeline of renewable and low-carbon hydrogen projects has grown and matured significantly in its new ‘Hydrogen Insights 2024’ report, co-authored by McKinsey & Company, with a seven-fold increase in committed capital for projects reaching final investment decisions in the space of four years.
The analysis shows that these projects, which numbered just 228 in 2020, had risen to 1,572 by May 2024. They have also matured, with a strong focus on moving projects forward to implementation.
In Europe, the number of projects has risen from 124 to 600 in four years. However, the continent’s global share of projects has fallen from 55% in 2020 to 40% in 2024, to the benefit of North America (20%) – which is seeing the biggest increase in projects in the final investment phase – China (10%) and Latin America (10%).
Worldwide, investment in projects that have reached the final investment decision stage has risen from around US$10 billion for 102 projects to US$75 billion for 434 projects in the space of four years.
According to the Hydrogen Council, this reflects the early stages of development in other clean energy sectors, such as wind and solar, “with natural attrition that fosters industry maturation by eliminating less viable projects and prioritising those with the highest potential”.
However, problems specific to the sector remain, such as regulatory uncertainty and the rising costs of renewable energy and electrolysers, which are causing delays in projects.
To see the report: https://aeur.eu/f/dhr (Original version in French by Pauline Denys)