Low-emissions Hydrogen Projects Set To Grow Strongly Despite Wave Of Persistent Challenges: IEA

PARIS, (UrduPoint / Pakistan Point News / WAM - 12th Sep, 2025) Despite a recent wave of project delays and cancellations, low-emissions hydrogen production is still set to see robust growth to 2030 as the nascent sector continues to develop, though at a slower pace than the burst of announcements earlier this decade had previously signalled, according to the latest International Energy Agency (IEA) analysis.

The 2025 edition of the IEA’s annual Global Hydrogen Review, published today, tracks developments across the hydrogen sector worldwide, with particular attention to the fast-moving developments in the emerging technologies around low-emissions hydrogen.

Worldwide hydrogen demand increased to almost 100 million tonnes in 2024, up 2% from 2023 and in line with overall energy demand growth, according to the report. The vast majority of this was met by hydrogen produced from fossil fuels without measures in place to capture associated emissions. Sectors that have traditionally used hydrogen, such as oil refining and industry, remained the biggest consumers.

Low-emissions hydrogen uptake is not yet meeting expectations set by industry and governments in recent years. Growth is being restrained by high costs, demand and regulatory uncertainty, and slow infrastructure development. Production projects have been particularly exposed to these headwinds.

New analysis of announced projects finds that low-emissions hydrogen production by 2030 now has the potential to reach up to 37 million tonnes per year. That is down from a potential 49 million tonnes per year, based on announced projects a year earlier.

Projects that are operational, under construction or have reached a final investment decision by 2030 are set to increase more than fivefold from 2024 levels to more than 4 million tonnes per year. An additional 6 million tonnes per year also has strong potential to become operational by 2030 if effective policies to ensure demand are implemented.

According to the report, China is the driving force today in the deployment of electrolysers to produce low-emissions hydrogen. The country accounts for 65% of global electrolyser capacity that has been installed or reached a final investment decision, and it is home to nearly 60% of the world’s electrolyser manufacturing capacity.

This year’s Global Hydrogen Review includes a special focus on Southeast Asia, which is emerging as a significant and growing hydrogen market. It finds that based on announced projects, low-emissions hydrogen production in the region could reach 430,000 tonnes per year by 2030, up from just 3 000 tonnes per year today.