Global Hydrogen Compass 2025 goes online
Green hydrogen investments have reached a new stage of global development. According to the Global Hydrogen Compass 2025, published by the Hydrogen Council in partnership with McKinsey & Company, committed investments have exceeded $110 billion, with more than 500 projects already under construction, in operation, or beyond the final investment decision stage.
This marks a $35 billion increase in just one year, confirming an average annual growth rate of 50% since 2020. At the same time, the industry is becoming more selective. Around 50 initiatives, representing 3% of the total, have been canceled over the past 18 months, mainly early-stage renewable hydrogen projects.
Green hydrogen investments tested by production capacity
On the supply side, committed capacity now exceeds 6 million tons per year, of which 1 million is already operational. Accounting for delays and cancellations, the current project pipeline could deliver between 9 and 14 million tons of clean hydrogen by 2030.
Demand, however, remains the critical challenge. So far, binding agreements cover 3.6 million tons, with potential demand rising to 8 million tons by the end of the decade, provided that policies in key markets (the EU, United States, Japan, and South Korea) bring greater clarity.
Which region leads hydrogen investments?
China tops the global ranking with $33 billion in investments and more than 50% of the world’s renewable hydrogen capacity. North America follows with $23 billion, concentrating 85% of low-carbon hydrogen production.
Europe, with $19 billion, ranks third but represents nearly two-thirds of projected global demand by 2030. This distribution highlights an increasingly competitive industry, with regions pursuing different but complementary approaches to building the hydrogen market.
Challenges and outlook
Despite progress, the industry faces significant hurdles. High interest rates and delays in policy implementation in some regions are slowing growth and impacting business models. The report notes that natural market friction is favoring projects with stronger economic fundamentals, while weaker ones are being abandoned.
At the same time, the market’s maturity is evident in the 1,700 new projects announced since 2020, creating the largest pipeline ever recorded. To unlock the sector’s full potential, closer cooperation between governments and the private sector will be essential, alongside faster demand mechanisms and stable global policy frameworks.
Is the hydrogen industry entering a new era?
The Global Hydrogen Compass is now the Hydrogen Council’s new annual publication. Jaehoon Chang, Vice-Chair of Hyundai Motor Group and Co-Chair of the Hydrogen Council, stated: “The Global Hydrogen Compass sends a strong message: our industry has entered a new chapter of construction, moving from ambition to realization. This milestone also reminds us of the work ahead. To sustain this momentum and unlock hydrogen’s full potential, consistent and effective policy support is essential.”
Sanjiv Lamba, CEO of Linde and Co-Chair of the Council, added: “Accelerating market creation and securing binding offtake agreements must become the priority to ensure today’s projects deliver real impact.”
Building on the Hydrogen Insights series launched in 2021, the report combines comprehensive industry data, analysis of key projects, and the perspectives of global CEOs. As Council CEO Ivana Jemelkova emphasized, “The report shows the industry’s steady growth trajectory over the past five years and provides the clarity and confidence businesses, investors, and policymakers need to advance to the next stage of development.”