WASHINGTON (dpa-AFX) - Despite a recent wave of project delays and cancellations, low-emissions hydrogen production is still set to see robust growth to 2030, according to the latest IEA analysis.
The 2025 edition of the IEA's annual Global Hydrogen Review tracks developments across the hydrogen sector worldwide, with particular attention to the fast-moving developments in the emerging technologies around low-emissions hydrogen.
The nascent sector continues to develop - though at a slower pace than the burst of announcements earlier this decade had previously signaled.
Worldwide hydrogen demand increased to almost 100 million tons in 2024, up 2 percent from 2023 and in line with overall energy demand growth, according to the report. The vast majority of this was met by hydrogen produced from fossil fuels without measures in place to capture associated emissions. Sectors that have traditionally used hydrogen, such as oil refining and industry, remained the biggest consumers.
Globally, it remains much cheaper to produce hydrogen from fossil fuels. The gap has widened lately due to recent declines in natural gas prices and an increase in the price of electrolysers due to inflation and slower-than-expected deployment of the technology. However, the report sees the cost gap narrowing by 2030 due to declining technology costs - and, in some regions, strong renewables growth and the enactment of new regulations.
Low-emissions hydrogen uptake is not yet meeting expectations set by industry and governments in recent years. Growth is being restrained by high costs, demand and regulatory uncertainty, and slow infrastructure development. Production projects have been particularly exposed to these headwinds. New analysis of announced projects finds that low-emissions hydrogen production by 2030 now has the potential to reach up to 37 million tonnes per year. That is down from a potential 49 million tonnes per year, based on announced projects a year earlier.
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