Clean Hydrogen Investment Surges Past $110 Billion

Global investment in clean hydrogen has officially crossed the $110 billion mark, according to a new report commissioned by the Hydrogen Council. Despite recent skepticism and several high-profile project cancellations, the sector is experiencing robust growth — with $35 billion in new projects reaching final investment decision in the past year alone.

Why This Surge in Hydrogen Matters

Hydrogen is often called the “missing link” in the clean energy transition. Unlike fossil fuels, hydrogen emits only water vapor when burned — making it an attractive alternative for decarbonizing heavy industry, transportation, and power generation.

This $110 billion milestone demonstrates that investors still see hydrogen as a critical solution for meeting net-zero goals. China and the United States are leading the charge, together accounting for more than half of the total investment. China is prioritizing green hydrogen — made from renewable energy — while the U.S. is focusing on blue hydrogen, which captures and stores emissions from natural gas.

Even with 50 projects abandoned in the past 18 months, the global pipeline still includes more than 500 initiatives. These projects represent over 5 million tonnes of hydrogen production capacity currently under construction — about half of current U.S. consumption.

Market Signals and the Road Ahead

Much of the growth is concentrated in mega-projects, such as four large-scale Chinese plants, the U.S.-based Blue Point project, and new developments in India led by Hygenco and Ameropa. Industry leaders argue that these larger, better-backed projects prove that hydrogen is maturing as a market.

Still, there are challenges. Europe faces criticism for regulatory delays and its reluctance to embrace blue hydrogen as a transitional solution. If policymakers fail to accelerate approvals, experts warn Europe risks falling behind Asia, the Middle East, and the United States in the race to scale hydrogen.

The Bottom Line

The surge in clean hydrogen investment is not just a financial milestone — it’s a signal that the global energy transition is gaining momentum. These investments will help build the infrastructure needed to produce, store, and transport hydrogen at scale, bringing costs down and unlocking new demand in industries that cannot easily electrify.

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