Hydrogen Sector Sees Seven-Fold Investment Increase Over Four Years, Reaches $75 Billion

The Hydrogen Council reported today that the global pipeline for clean hydrogen projects is expanding and maturing, with 434 projects amounting to approximately $75 reaching a final investment decision (FID). 

This represents a seven-fold increase in committed investment over the last four years, rising from $10 billion across 102 projects in 2020 and a 90% increase since the last update, which noted USD 39 billion in October 2023. 

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Jaehoon Chang, President and CEO of Hyundai Motor Company and Co-Chair of the Hydrogen Council, said, “The seven-fold increase in committed capital for hydrogen projects reaching FID over the past four years demonstrates the industry’s progress. We are pleased to see the industry walking the talk at this critical transitional moment, as evidenced in the latest Insights report.”

He added, “Moreover, further action is needed to ensure an accessible and affordable hydrogen supply, enabling the widespread adoption of hydrogen.” 

According to the Hydrogen Insights 2024 report, co-authored with McKinsey & Company, the total global project pipeline now stands at 1,572 as of May 2024, a significant rise from 228 projects in 2020.  

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From October 2023 to May 2024, total announced investments projected through 2030 have risen by roughly 20%, from $570 billion to $680 billion. 

However, despite this progress, the hydrogen sector faces macroeconomic challenges and specific issues such as regulatory uncertainty and rising costs for renewable energy and electrolysers, which have caused some project delays.  

The organization also noted that announced investments are still falling short of what is needed to meet net-zero targets.