The number of announced global hydrogen projects continues to rise, but the number of projects reaching final investment decisions has only experienced a modest increase, according to an update from industry group the Hydrogen Council.
Global project announcements reached 1,418 this October, from 1,040 this January, the report said. But amid abundant announcements and feasibility studies touting 45mn t/yr of production capacity by 2030, of which 70pc is renewable, few projects have progressed past early planning stages.
Announcements in 2021 had indicated there would be 6GW of electrolysis operational by the end of 2022 — but as of this October that number was 1.1GW, marking a 400MW increase from January. The delay is partly owed to the increased cost of capital, higher capital costs and continued regulatory uncertainty, the report said.
The cost of hydrogen has also increased 30-65pc from the Council's previous estimates. A modeled 1GW electrolysis plant based in the US Gulf Coast would today produce hydrogen at $5/kg, from an estimated $2.9/kg previously.
The majority of committed capital is based in North America, with 60pc, followed by China with 20pc and Europe and the Middle East each with 8pc. But Europe leads in planned investments with a total $193bn in announced projects, followed by Latin America and North America. A gap of $430bn remains for the world to reach 2030 targets, with infrastructure standing out as the most under-funded component.
| H2 investment growth | '$bn | |
| Stage | Jan-23 | Oct-23 |
| Announced | 200.0 | 259.0 |
| Feasibility studies | 160.0 | 203.0 |
| FEED studies | 44.0 | 71.0 |
| Committed | 31.0 | 39.0 |
| Hydrogen Council | ||
