Significant Advances Made In Global Hydrogen Production

In positive renewable energy news, global hydrogen energy projects have seen a marked increase since the end of 2023.

Aurora Energy Research have recently published a report showing that hydrogen electrolyser projects (also known as green hydrogen projects) have increased by 55GW in the last 6 months. This is the equivalent of a 4% increase within a very short time frame. Their findings also show that 90% of these projects are in their early stages of development, suggesting that this boost could be increased further as they become more established.

About a third (32%) of these projects are to be found in Europe, with Germany playing the leading role in terms of new electrolyser projects. Hydrogen is set to be a key part in Germany’s climate target to be carbon neutral by 2045.

Oceania has the second largest share with one fifth (21%). However, the report has found that the increase in hydrogen projects is not necessarily limited to these regions but can be seen on varying scales throughout the world.

While this is an impressive step forward for hydrogen production, it is unfortunately still not sufficient to meet upcoming 2030 targets for electrolyser capacity. If continuing at the current rate, we may still be as much as 76% short to achieve these targets. Aurora’s report highlights 3 key barriers standing in the way: high electrolysers’ CAPEX, the high cost of capital and uncertainty in offtake agreements which delay investment decisions.

“The positive impact of clearer policy frameworks and support schemes is evident in electrolyser projects globally, with new projects as well as some of the existing ones reaching a Final Investment Decision (FID). However, further cooperation still remains a prerequisite for the realisation of national targets and the successful rollout of a future hydrogen market.”

Dilara Caglayan, Aurora Energy Research, Research Lead

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