The hydrogen industry has seen significant growth in the past decade, and now a report states that global hydrogen investment has reached a crucial milestone, thanks to the renewed interest in the sector that is being felt across the world. Reports state that global investment topped $110 billion, thanks to over 500 projects all around the globe. Hydrogen plays an integral role in the global decarbonization efforts. Everything from cars to electricity can make use of hydrogen, with some companies like Hyundai placing a considerable amount of faith in the sector.
The Hydrogen Council’s inaugural Global H2 Compass report delivers some good news for the sector
The global standing of hydrogen is on the rise. The world is acutely aware of the need to decarbonize, especially in the energy sector. The H2 Compass reports that the sector has averaged a 50% year-over-year committed investment growth rate. Since 2020, there have been more than 1,700 H2 projects announced globally, while roughly 50 projects have been publicly canceled in the past 18 months.
The Hydrogen Council has praised the innovation and advancements that the sector has made in the past few years, and stated that it believes that reliance on hydrogen will only grow as time passes.
“The industry has made strong progress over the past five years, demonstrating its ability to innovate and scale. The Global H2 Compass report shows we are now at a pivotal juncture: accelerating market creation and securing binding offtake agreements must become the priority to ensure today’s projects deliver real impact. Achieving this will require stronger collaboration between business and government to build the frameworks and partnerships essential for progress. By aligning our efforts, we can unlock the full potential of H2 to meet the challenges ahead.” – Sanjiv Lamba, CEO of Linde and Co-Chair of the Hydrogen Council
China leads the growth in the hydrogen sector, with North America coming in second
What the industry needs is committed investment. And the heaviest energy consumers have made significant moves in the hydrogen sector. China leads the way with $33 billion of committed investments. North America comes in second with $23 billion, and lastly, Europe ranks third in committed investment with $19 billion.
A major player in the usage of hydrogen comes from South Korea. Hyundai has led the automotive industry in its embrace of hydrogen. The company has made several series of models that use hydrogen as the main fuel source. We have yet to realize the full potential that hydrogen has locked away.
“The Global H2 Compass sends a strong message: our industry has entered the next chapter of build-out, moving from ambition to delivery. With more than 500 projects advancing past FID and investment commitments now exceeding $110 B, a $35 B increase from last year, we are seeing tangible proof of progress. This milestone also reminds us of the work ahead. To sustain this momentum and fully unlock H2’s potential, consistent policy support and effective execution are essential in accelerating a clean, resilient and secure energy future.” – Jaehoon Chang, Vice-Chair of Hyundai Motor Group and Co-Chair of the Hydrogen Council
Hydrogen will continue to play a crucial role in the global decarbonization efforts
We are fully aware of the disastrous effect our reliance on fossil fuels has had on the planet. Several environmental disasters have emerged as a result of our proclivity for fossil fuels. The government leaders of the world have taken significant steps to alleviate the pressure being put on our planet, thanks to the energy demands that we have. The Europeans have made huge investments in the hydrogen sector, along with the ever-innovative Chinese. However, what role will hydrogen play in the United States as time passes?
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