Global Hydrogen Industry Major Trends 2024

As hydrogen continues to solidify its role in global decarbonization efforts, 2024 has marked a pivotal year in the sector's journey. From a growing project pipeline to accelerated electrolysis capacity announcements, the hydrogen industry has seen both progress and challenges that will shape its trajectory. This article highlights the most significant developments in the hydrogen industry through September 2024.

Some of the major trends and developments that the industry witnessed in 2024 so far are:

Growing Hydrogen Projects Pipeline

In 2024, the hydrogen project pipeline has witnessed remarkable growth as global initiatives to decarbonize hard-to-abate sectors gain momentum. With hydrogen becoming increasingly pivotal in clean energy transitions, the number of announced projects has risen sharply, fueled by heightened investment in the sector.

From December 2020 to May 2024, the pipeline expanded from 228 projects to 1,572, with committed-stage projects increasing from 102 to 434. Over the same period, clean hydrogen supply capacity tied to projects with final investment decisions (FID) has seen a significant boost—from 716 kilotons per annum (kt p.a.) projected for 2030 (dominated by low-carbon hydrogen) to 4.6 million tons per annum (Mt p.a.), now equally distributed between low-carbon and renewable hydrogen sources.

Between 2020 and 2024, the planned clean hydrogen supply capacity for 2030 has risen significantly from 7 million tons per annum (Mt p.a.) to 48 Mt p.a., mirroring the rapid increase in project numbers. This substantial growth is largely driven by the development of large-scale low-carbon hydrogen projects supported by carbon capture and storage (CCS) initiatives initiated prior to 2020. 

Geographical Shift in Hydrogen Projects Development

In 2020, Europe dominated hydrogen project development, representing 55% of the global project pipeline by project count. However, in recent years, the balance has shifted, with the 'global south' playing an increasingly significant role.

Europe's contribution to the global hydrogen project pipeline has declined to 40%, despite the number of projects increasing significantly from 125 to over 600. North America has now emerged as the second-largest region, accounting for 20% of the pipeline, followed by China and Latin America at 10% each. Notably, North America has experienced the most substantial growth in projects at the committed stage, with nearly 100 projects now past the final investment decision (FID), a sharp rise from fewer than 10 in 2020.

This indicates a significant rise in the proportion of projects past the final investment decision (FID) in North America, now accounting for over 20% of all FID-stage projects, compared to less than 10% in 2020.

Announced Electrolysis Capacity Deployments Increase

The global cumulative installed electrolysis capacity has reached 1,750 MW (by May 2024), which translates to approximately 185 kilotons per annum of renewable hydrogen supply. This means that renewable hydrogen now constitutes about 20% of the total installed clean hydrogen production capacity worldwide.

Approximately 375 GW of electrolysis capacity has been announced for deployment by 2030, marking an increase of 70 GW compared to announcements in 2023. Of this, around 185 GW has progressed beyond the initial announcement stage, with nearly 160 GW in feasibility studies or front-end engineering design (FEED) and 26 GW having passed the final investment decision (FID).

Electrolysis capacity past FID has doubled from 12 GW to 26 GW, with the majority located in China, followed by North America (approximately 10%), the Middle East (around 10%), and Europe (about 5%). China continues to lead in deployments, with its share of committed electrolyzer volumes rising from 40% to about 55% in recent years, and now reaching 65% of the global total.

Hydrogen Refueling Infrastructure Deployments Continue to Accelerate in China and South Korea

More than 1,160 hydrogen refueling stations (HRS) are now operational globally, with deployment growing by 65% from 2021. China, Japan, and South Korea are the largest markets exceeding 850 stations in total, followed by Europe with around 240 stations.

However, in Europe and North America, there has been a downward trend for hydrogen refueling stations the previous year, with a decline in number of operational hydrogen refueling stations of about 10% and 40% respectively.

Nations such as Japan, and South Korea are planning to expand their HRS network to more than 600 stations each by 2030, which can result in doubling the umber of station in Asia. The European Union is also expected to increase the number of stations owing to the recently adopted Alternative Fuels Infrastructure Regulation (AFIR) which will require the deployment of a hydrogen refueling station every 200 km along the Trans-European Transport Network (TEN-T), corresponding to more than 400 stations through 2030.

The adoption of hydrogen-powered vehicles is closely tied to the availability of hydrogen refueling infrastructure. South Korea and Japan remain leaders in light hydrogen-fueled vehicles, accounting for approximately 65% of the global fleet in this category. Meanwhile, China dominates the hydrogen truck and bus markets, representing about 95% and 85% of their respective segments. The momentum for heavy hydrogen-powered vehicles, particularly trucks, is growing, with over 130 models of hydrogen-fueled buses and trucks now available.

As the hydrogen vehicle market shifts towards heavier vehicles, there will be a growing demand for refueling stations with greater capacity, necessitating upgrades and expansions to existing infrastructure. Additionally, new hydrogen refueling facilities may be required to support off-road mobility applications, including rail and inland shipping.

While the majority of hydrogen-powered vehicles today are fuel cell electric vehicles (FCEVs), advancements in hydrogen combustion powertrains are also underway, signaling a diversification of technology in the sector.

Conclusion

The hydrogen sector in 2024 stands at a pivotal juncture, showcasing remarkable progress alongside evolving challenges. With a rapidly expanding project pipeline, ambitious electrolysis capacity targets, and significant advancements in hydrogen-powered mobility, the industry is driving forward global decarbonization efforts.

While regions like China, South Korea, and North America are leading the charge in infrastructure development and project commitments, Europe is adjusting to a more balanced role as the hydrogen landscape diversifies globally.

However, to realize the full potential of hydrogen as a clean energy solution, the industry must address project delays, infrastructure bottlenecks, and technological hurdles. Collaboration among governments, private stakeholders, and international bodies remains crucial to fostering innovation and scaling deployment across the value chain.

As the hydrogen industry continues to grow, its ability to balance ambition with practical execution will shape its role as a cornerstone of the global energy transition. 2024’s progress lays a strong foundation, but sustained momentum and strategic action will be essential to achieving a truly hydrogen-powered future.