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Global Green Hydrogen Projects Lag, With Only 7% Completed On Time

Created at 19 Aug · 12:16 AM1 source↑ Market-relevant
IN SHORT

Despite enthusiasm for green hydrogen as a clean energy solution, a significant implementation gap persists. A study found that less than a tenth of planned green hydrogen projects were completed in 2023, with only 7% of global capacity announcements finished on schedule. The sector faces economic headwinds and questions about its most effective applications.

Key Numbers

7%global green hydrogen capacity completed on schedule
10%planned green hydrogen projects carried out in 2023
four timesmore expensive per mile than gasoline for hydrogen cars in California
14,000hydrogen cars registered in California in 2025
65hydrogen fueling stations in California in 2023
57hydrogen fueling stations in California currently
190green hydrogen projects tracked over 3 years

Who's Involved

LA Times
reported on investor hesitancy and California's hydrogen car market
California Energy Commission
provided data on hydrogen fueling stations
Nature Energy
published a study on green hydrogen project implementation gaps
Nature Reviews
published a paper on strategic deployment of clean hydrogen
Haley Zaremba
author for Oilprice.com
Global Green Hydrogen Projects Lag, With Only 7% Completed On Time

↳ Why This Matters

The slow progress in green hydrogen deployment highlights the challenges in transitioning to cleaner energy sources, impacting efforts to meet climate goals and reduce reliance on fossil fuels in critical sectors.

Key facts

  • Less than a tenth of planned green hydrogen projects were completed in 2023.
  • Only 7% of global green hydrogen capacity announcements were finished on schedule.
  • California has seen a decrease in hydrogen car registrations and a reduction in functional fueling stations.
  • Green hydrogen is produced using renewable energies, offering lower lifecycle emissions than gray hydrogen.
  • Research indicates green hydrogen is more effective in industry, long-duration storage, and long-haul transport than for cars or heating.
  • China, the US, and the EU are incorporating hydrogen into their energy strategies.

Green hydrogen, once hailed as a key solution for decarbonizing hard-to-abate sectors, is facing significant implementation challenges, with only 7% of planned global capacity completed on schedule in 2023. Research indicates a wide gap between ambition and execution, with less than a tenth of projects finished as planned.

California's experience exemplifies these struggles, where hydrogen has failed to become a mainstream transportation fuel due to high costs and limited infrastructure. The state has seen a decline in registered hydrogen vehicles and a shrinking number of functional fueling stations, leading to investor hesitancy. Vehicle manufacturers and fleet owners are reluctant to invest when fuel availability is uncertain.

While most industrial hydrogen is currently 'gray' hydrogen produced from fossil fuels, 'green' hydrogen, made with renewables, faces its own efficiency issues. Using clean energy for direct applications often proves more effective than converting it into hydrogen. This has led to a critical assessment of green hydrogen's role.

However, research suggests that green hydrogen still holds potential for specific applications such as industrial processes, long-duration energy storage, and long-haul transport. Experts advocate for a strategic deployment in areas where it offers the greatest cost and sustainability benefits compared to alternatives like direct electrification. In the short term, renewable electricity might be more impactful when used directly to displace fossil fuels.

Despite a global cooldown, renewed interest in hydrogen, spurred by volatility in fossil fuel markets, presents an opportunity to reorient investment and policy. Major economies like China, the United States, and the European Union are cautiously integrating hydrogen into their energy strategies, viewing it as a component of a more diverse and resilient energy landscape, rather than a singular solution.

Frequently asked questions

The primary challenge is a significant implementation gap, with only 7% of planned global capacity completed on schedule in 2023, indicating a failure to meet expectations.

Hydrogen costs four times more per mile than gasoline, and the state has seen a decrease in registered hydrogen cars and a reduction in functional fueling stations.

Research suggests green hydrogen is best suited for industrial processes, long-duration energy storage, and long-haul transport, rather than fuel cell cars or space heating.

Gray hydrogen is produced using fossil fuels, while green hydrogen is produced using renewable energies, resulting in lower lifecycle emissions.

What Happens Next

01Refocusing green hydrogen research and development efforts.
02Strategic deployment of clean hydrogen in areas with greatest potential benefits.
03Continued integration of hydrogen into national energy strategies by China, the US, and the EU.
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How It Developed

Green hydrogen research and development has faced challenges in meeting expectations over the past decade.
California's bet on hydrogen for transportation has faltered, with decreasing car registrations and fueling stations.
Investors are hesitant due to uncertainty about fuel availability and the limited number of hydrogen vehicle manufacturers.
The majority of industrial hydrogen is gray hydrogen, produced from fossil fuels.
A study in Nature Energy found only 7% of planned green hydrogen projects were completed on schedule in 2023.
Research suggests green hydrogen is better suited for industrial applications, long-duration energy storage, and long-haul transport rather than fuel cell cars or space heating.
Global fossil fuel market volatility has reignited interest in hydrogen, prompting strategic reorientation of investment and policy.
China, the US, and the EU are cautiously re-embracing hydrogen in their energy strategies.

Sources

T1
Only 7% of Global Green Hydrogen Capacity Was Finished on ScheduleOilPrice.com

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