152 Trillion Won Poured into Global Hydrogen Industry... "50% Annual Growth"

Hydrogen Council Publishes First "Global Hydrogen Compass"

Hyundai Motor Company's hydrogen electric bus

This year, the amount pledged for investment in the clean hydrogen industry has reached $110 billion (approximately 152 trillion won). This represents an increase of $35 billion compared to last year. In addition, more than 500 projects worldwide have either completed the Final Investment Decision (FID) stage or are currently under construction or in operation.

The Hydrogen Council, citing the first "Global Hydrogen Compass" jointly published with McKinsey & Company on September 9, stated, "The amount of pledged investment in the clean hydrogen sector has been growing by more than 50% annually on average since 2020 compared to the same period of the previous year."

According to the report, some projects in the clean hydrogen sector are being phased out. The report analyzed, "While projects with strong business viability continue to move forward, those with relatively less competitiveness are being withdrawn, signaling that the industry is entering an overall stage of maturity."

Since 2020, more than 1,700 hydrogen projects have been announced globally, a 7.5-fold increase. In contrast, about 50 renewable hydrogen projects have been officially canceled over the past 18 months. The report identified the reasons as the continued high interest rate environment in some regions and delays in policy implementation, which have accelerated this selection process.

On the supply side, the total pledged production capacity has surpassed 6 million tons per year (mtpa), with 1 million tons already in operation. At the current pace, up to 90,000 to 140,000 tons of clean hydrogen could be produced annually by 2030. As supply increases, expanding demand has also emerged as a key task for the future.

The report stated that firm offtake agreements have been signed for 36,000 tons per year, and as policies in major markets such as Korea, the European Union, the United States, and Japan become clearer, demand for clean hydrogen is expected to reach up to 80,000 tons by 2030.

By country, China has pledged a total investment of $33 billion and accounts for more than half of the world's renewable energy-based hydrogen production. North America, with $23 billion in pledged investment, accounts for 85% of global low-carbon hydrogen production. Europe, ranking third with $19 billion in pledged investment, is expected to account for about two-thirds of global hydrogen demand by 2030.

The majority (74%) of CEOs who responded to this survey said that despite challenging conditions, their willingness to invest has either remained stable or increased over the past two years.

Jaehoon Chang, Co-Chair of the Hydrogen Council and Vice Chairman of Hyundai Motor Company, commented, "The Global Hydrogen Compass strongly indicates that the hydrogen industry has moved beyond the goal-setting stage and entered a new phase focused on execution."

Sanjiv Lamba, Co-Chair of the Hydrogen Council and CEO of Linde, stated, "To help multiple projects deliver tangible results, accelerating market creation and securing firm offtake agreements must be the top priorities."

Meanwhile, the Hydrogen Council is an initiative led by global CEOs to realize the potential of hydrogen and accelerate the energy transition. Approximately 140 companies from about 20 countries across the Americas, Europe, Africa, the Middle East, and Asia-Pacific are participating.