The International Energy Agency (IEA) published its Global Hydrogen Review 2024, an annual publication which tracks
hydrogen production and demand worldwide, as well as progress in critical areas such as infrastructure
development, trade, policy, regulation, investments, and innovation.

Some takeaways from the report:

Clean hydrogen market penetration is growing fast, at a growth rate of 50% since 2021. Global installed electrolyser capacity has grown nine times larger.

However, in Europe, the electrolyser capacity installed only grew by a factor of three. This is a clear sign that Europe is losing its competitive advantage as first movers to China and the USA. Things have to rapidly improve to bring more clarity and certainty to get private capital going into important projects.

The interest from future consumers of clean hydrogen is also growing and a larger share of projects have now reached
final investment decision (FID), 7% (from 4% last year). Still, this is not enough to preserve Europe’s market lead.

As the IEA points out, there are a number of important aspects that need to be address, such as more support to get offtakers signing long-term contracts, both economically but also through the development of infrastructure. And considering the monumental challenge ahead, there should be more pragmatism on the definition of renewable and low carbon hydrogen, avoiding unnecessary costs that impede the take-off of this nascent sector.

Download the report here.