IEA sees strong growth for low-emissions hydrogen projects

The International Energy Agency has released its 2025 edition of its annual Global Hydrogen Review. The IEA has announced lower-than-expected production levels for the first half of this year, but expects significant growth in the years to come. Hydrogen has become a key energy source in both the renewable and non-renewable energy sectors, thanks to the low costs associated with using hydrogen to power the existing fossil fuel sector. That proclivity for hydrogen has enabled the sector to forecast significant growth for the years leading up to 2030.

The International Energy Agency states that worldwide demand for hydrogen is on the rise

Hydrogen has so much potential that is yet to be fully explored. Rising costs in the energy sector have led to a recent wave of project delays and cancellations. Despite the new approach to the energy sector being led by the Trump administration, hydrogen remains a crucial part of the energy sector in the United States. Whether the current administration likes it or not.

The global usage of hydrogen in the energy sector is on the rise. The worldwide demand for hydrogen has increased to almost 100 million tons in 2024, which is up 2 percent from 2023.

The vast majority of that hydrogen usage in 2024 comes from the fossil fuel sector, where most projects state that they do not have any carbon-capturing systems in place. The biggest consumers of hydrogen have been in the oil refining industry.

Despite the current administration’s disapproval of hydrogen, the forecast looks promising

In the past few months, since Donald Trump started his second term as the President of the United States, the federal government has cancelled or halted projects that aim to increase the standing and usage of renewable energy in the industry. Several projects have had federal funding pulled or been ordered to halt construction while the Trump government assesses the permits and regulations of the Biden era.

Despite that, the forecast for the future of hydrogen looks very good indeed. The IEA reported that low-emissions hydrogen production now has the potential to reach up to 37 million tonnes per year by 2030. We suspect that the analysis comes as the Trump Presidency will end in 2028.

The end of the Trump presidency could boost the standing of the hydrogen sector worldwide

Once that happens, the IEA has reported that the hydrogen sector will continue to grow and become the world’s most dominant energy source. The Biden-led government instituted a tax credit for companies in the hydrogen sector, but the Trump administration has plans to roll back that tax credit.

The IEA reported that if the current trend continues, hydrogen could boost capacity to 4 million tonnes per year, with a further 6 million tonnes possible if effective policies are introduced once Trump vacates the Presidency.

“Investor interest in hydrogen jumped at the start of this decade thanks to its potential to help countries deliver on their energy goals. The latest data indicates that the growth of new hydrogen technologies is under pressure due to economic headwinds and policy uncertainty, but we still see strong signs that their development is moving ahead globally.” – Fatih Birol, IEA Executive Director

A new coalition could catapult hydrogen to the top of the global energy sector

Despite the Trump administration’s efforts to roll back any progress that was made by the Biden administration, hydrogen still remains a crucial energy source worldwide. A new coalition formed between the United States and Europe plans to build one of the longest and most efficient hydrogen pipelines in history. Will the Trump administration follow through with its threats to pull federal funding for renewable energy projects in favor of the more traditional energy solutions that the fossil fuel sector presents?