Clean hydrogen is increasingly seen as a game-changer in the global energy transition. Produced using renewable power or low-carbon technologies, it offers a pathway to decarbonize sectors where emissions are hardest to cut such as steel, refining, shipping, and heavy transport. For years, it was considered a “future fuel.” Now, investment trends show it is becoming a present reality.

The Investment Boom

According to the Hydrogen Council’s Global Hydrogen Compass 2025, global investment in clean hydrogen has surpassed $110 Billion, supporting more than 500 projects under construction or already operational. This surge represents a $35 Billion increase in just one year, with average growth of more than 50% annually since 2020. Together, these projects account for over 6 Million Tonnes of clean hydrogen capacity per year, with about 1 Million Tonnes already online.

Global Hydrogen Project Pipeline

Since 2020, more than 1,700 hydrogen projects have been announced worldwide. The pipeline has matured, with about 50 projects cancelled in the last 18 months, mostly at an early stage. Currently, around 510 projects are classed as “committed”, that is, they are either under construction, operational, or have reached final investment decision. If all are realized, these projects could deliver 9-14 Million Tonnes of hydrogen capacity annually by 2030.

Global Hydrogen Race

Each region is shaping hydrogen growth in its own way, together creating a highly competitive landscape:

i.  China: Holds >50% of global committed capacity. Operational capacity has grown 6x since 2022, driven by state-owned enterprises and strong policy support.

ii. North America: Leads in low-carbon hydrogen, leveraging low-cost natural gas, robust carbon capture infrastructure, and incentives such as the U.S. 45Q tax credit.

iii. Europe: With $19 Billion committed, Europe ranks third in investment but could drive two-thirds of global demand by 2030, provided its regulatory push stays on track.

iv. India: Emerging as a cost leader in renewable ammonia, positioning itself as a key exporter.

v.  Middle East: Building mega-scale renewable hydrogen projects aimed at global markets.

Demand: The Decisive Factor

Even as supply capacity builds rapidly, the real driver of momentum will be demand. To date, about 3.6 Million Tonnes per year of binding offtake agreements have been secured, covering 60% of committed supply. Mainly used in refining and ammonia.

The outlook, however, is far bigger. Policy-backed demand could reach 8 Million Tonnes annually by 2030 in regions like the EU, U.S., Japan, and Korea. An additional 13 Million Tonnes could be unlocked through stronger infrastructure and declining costs. Executives stress that will be essential to lowering costs, accelerating uptake, and building the ecosystem at scale.

The Road Ahead

Despite some cancellations and ongoing regulatory uncertainty, optimism remains strong. Nearly three-quarters of executives surveyed said their appetite for hydrogen investment has stayed stable or even increased over the past two years.

As Sanjiv Lamba, CEO of Linde and co-chair of the Hydrogen Council, put it: “Hydrogen will be a critical decarbonization solution for hard-to-abate sectors.”

With billions already committed and demand gradually building, clean hydrogen is moving from ambition to execution. The next few years will determine whether it becomes the cornerstone of global decarbonization.