Key facts
- Global investment in clean hydrogen has reached over $130 billion for 6.9 million tons per annum of capacity.
- Operational capacity has grown 70% this year to 1.7 mtpa.
- China accounts for the largest share of committed investment at $44.5 billion.
- Europe has the second-largest cumulative investment with about $30 billion.
- High costs and uncertain demand are slowing the development of low-emissions hydrogen projects.
Global investment in clean hydrogen has surged past $130 billion, fueled by a renewed focus on energy security in the wake of Middle East supply shocks, alongside ongoing industrial growth and decarbonization mandates. The Hydrogen Council's latest Global Hydrogen Compass 2026 report indicates that this investment covers over 570 projects, with committed capacity reaching 6.9 million tons per annum.
Operational capacity has seen a significant 70% increase this year, reaching 1.7 million tons per annum, and is projected to double in the coming year as projects under construction near completion. China leads the global development, accounting for $44.5 billion in committed investment, with a substantial portion, about $12 billion, having reached final investment decisions in the past year. Europe follows with approximately $30 billion in cumulative investment for renewable hydrogen capacity, with more than half allocated to hydrogen end-uses.
Despite the growing investment, the report highlights that green hydrogen production via electrolysis remains expensive and has struggled to meet expectations due to high costs and difficulties in securing offtake agreements. The International Energy Agency (IEA) echoed these concerns in its June Global Hydrogen Review, stating that low-emissions hydrogen is far from being able to provide an immediate response to energy security needs. Persistent challenges, including high costs, uncertain demand, complex regulations, and inadequate infrastructure, continue to hinder the development of low-emissions hydrogen, potentially jeopardizing government-announced 2030 targets.