By: ICN Bureau
Last updated : September 16, 2025 9:19 pm
The report highlights that worldwide hydrogen demand rose to nearly 100 million tonnes in 2024
Amid a steady rise in global hydrogen demand, the pipeline for low-emissions hydrogen projects has narrowed, yet robust expansion through 2030 remains on track, according to the International Energy Agency’s (IEA) Global Hydrogen Review 2025. Despite a recent wave of project delays and cancellations, low-emissions hydrogen production is still projected to grow significantly, though at a slower pace than initially expected earlier this decade.
The report highlights that worldwide hydrogen demand rose to nearly 100 million tonnes in 2024, up 2 percent from 2023 and consistent with overall energy demand growth. Most of this demand was met by hydrogen produced from fossil fuels without emissions abatement measures, with oil refining and heavy industry remaining the largest consumers. While fossil fuel-based hydrogen continues to be cheaper to produce, the cost gap with low-emissions alternatives is expected to narrow by 2030 due to falling technology costs, stronger renewable energy growth, and new regulatory measures in key markets.
However, uptake of low-emissions hydrogen remains below earlier government and industry expectations. High production costs, regulatory uncertainty, slow infrastructure deployment, and subdued demand are constraining progress. The IEA now estimates that announced projects have the potential to deliver up to 37 million tonnes of low-emissions hydrogen per year by 2030, down from the 49 million tonnes projected a year ago. Actual realized capacity will likely be lower, but production that is operational, under construction, or has reached a final investment decision is still set to increase more than fivefold from 2024 levels to over 4 million tonnes annually. An additional 6 million tonnes per year could also materialize by 2030 if governments implement effective demand-side policies.
“Investor interest in hydrogen jumped at the start of this decade thanks to its potential to help countries deliver on their energy goals,” said IEA Executive Director Fatih Birol. “The latest data shows that growth is under pressure from economic headwinds and policy uncertainty, but there are still strong signs of momentum worldwide. To ensure progress continues, policymakers should maintain support schemes, foster demand, and accelerate infrastructure development.”
China remains the global leader in electrolyser deployment, accounting for 65 percent of installed or committed capacity and nearly 60 percent of global manufacturing. However, with existing manufacturing capacity exceeding 20 gigawatts annually, Chinese producers face potential overcapacity risks amid slower-than-expected uptake worldwide. The report also finds that the cost of installing Chinese electrolysers outside China is comparable to those from other producers once tariffs and transport costs are included.
The Global Hydrogen Review 2025 also examines the shipping sector, identifying early opportunities to adopt hydrogen-based fuels given the proximity of many ports to low-emissions hydrogen production hubs. Nearly 80 ports already have strong expertise in handling chemical products, positioning them well to manage hydrogen-based fuels with targeted upgrades.
This year’s edition features a special focus on Southeast Asia, which is emerging as a promising hydrogen market. Announced projects suggest low-emissions hydrogen production in the region could grow from 3,000 tonnes today to 430,000 tonnes annually by 2030. Achieving this potential will require faster renewable energy deployment, supportive policies, and scaled-up pilot projects to build technical expertise.