The IEA's annual Global Hydrogen Review 2024 indicates that the number of low-emissions hydrogen projects that have reached final investment decision (FID) has doubled over the past year. The total electrolyser capacity with FID now stands at 20GW globally.

Despite challenges such as regulatory uncertainties and cost pressures, new projects continue to emerge. If all announced projects are realized, total hydrogen production could reach nearly 50 million tonnes annually by 2030, requiring an unprecedented growth rate of over 90%.

In the last year, over 6GW of electrolyser capacity reached FID, with China accounting for more than 40%. The country dominates electrolyser manufacturing, with 60% of global capacity.

However, installed capacity remains low as developers await clearer government support. Regulatory uncertainties hinder potential production, leaving many projects in early development stages.

Fatih Birol, IEA Executive Director, stated, "The growth in new projects suggests strong investor interest in developing low-emissions hydrogen production," emphasizing the need for buyers to support these projects. The report also highlights a gap between production and demand targets set by governments, indicating that current efforts are insufficient to meet climate goals.

Latin America is identified as a potential hub for low-emissions hydrogen, with many countries developing hydrogen strategies focused on export opportunities, though immediate applications primarily lie in refining and ammonia production.

Source: renews.biz