Clean Hydrogen Investment Tops $130 Billion

The oil and gas supply shock from the Middle East conflict has led to a surge in global investments in clean hydrogen, with cumulative investments surpassing $130 billion across more than 570 projects, according to the Hydrogen Council. Energy security has emerged as a key driver alongside industrial growth and decarbonization targets.

The industry-led association reported a total committed investment of $130 billion for a capacity of 6.9 million tons per annum (mtpa) of clean hydrogen. Operational capacity has increased by 70% this year to 1.7 mtpa, and is expected to double next year as projects under construction come online. China leads in clean hydrogen development, accounting for the largest share of committed investment at $44.5 billion, including $12 billion committed to final investment decision (FID) over the past year.

Europe follows with about $30 billion in cumulative investment, with half of it focused on hydrogen end-uses. Despite clean hydrogen production via electrolysis with renewable energy being expensive and lacking in actual project launch, decarbonization and energy security remain critical drivers for clean hydrogen investment. However, the current momentum is hindered by persistent barriers such as high costs, uncertain demand, complex regulations, and lack of infrastructure, preventing clean hydrogen from meeting the immediate energy security needs, as noted by the International Energy Agency in its Global Hydrogen Review.