Global hydrogen demand is expected to reach almost 100 million tonnes by 2024, driven by a 2% growth from the previous year. The International Energy Agency (IEA) released this nugget of good news in their new Global Hydrogen Review 2025 edition, released last week. In spite of these project delays and cancellations, the report finds an encouraging picture for low-emission hydrogen production by 2030.
The hydrogen market currently is on a dynamic growth path. The increase is largely attributed to growing demand, and the potential to close the price gap with low-emission hydrogen. With accelerating cost declines for technology, analysts project low-emission hydrogen production to skyrocket up to 37 million tonnes per annum (mtpa) by 2030. This potential comes atop an estimated output of 49 mtpa from last year.
Challenges in Hydrogen Production
Looking ahead, things are equally promising! The IEA raised a number of hurdles that may temper this fast-paced growth in low-emission hydrogen initiatives. Economic headwinds and policy uncertainties have conspired to put pressure on the development of new hydrogen technologies.
“The latest data indicates that the growth of new hydrogen technologies is under pressure due to economic headwinds and policy uncertainty, but we still see strong signs that their development is moving ahead globally.” – IEA executive director Fatih Birol
The IEA reminds us that targeted policies matter. By using these strategies, we can attract private capital and accelerate the development of critical infrastructure needed to address these challenges.
“To help growth continue, policymakers should maintain support schemes, use the tools they have to foster demand, and expedite the development of necessary infrastructure.”
Southeast Asia Emerges as a Key Player
Southeast Asia is quickly becoming an important global hydrogen market player. The region is on the cusp of increasing hydrogen production 18-fold. Estimates indicate that it may increase to 430,000 tonnes per annum (tpa) by 2030. This is a massive jump from just 3,000 tpa tracked in 2024.
Whether or not low-emission hydrogen production grows in Southeast Asia will depend on how quickly renewable energy can be deployed. For their part, countries throughout the region have been increasingly keen to diversify their energy portfolios. Clean hydrogen production is a perfect fit for them to produce energy and accomplish their goals.
Future Outlook for Hydrogen Projects
Investor interest in hydrogen has exploded at the start of this decade. This boom is being driven by hydrogen’s promise as a key tool for countries to reach their energy goals. The expected increase in price competitiveness between conventional and low-emission hydrogen will only amplify that interest.
With each announcement of new pilot projects comes excitement from industry stakeholders. They continue to be optimistic that these actions will lay the groundwork for a robust hydrogen economy to take hold. Targeting expansion of these initiatives is critical to making sure low-emission hydrogen emerges as a viable, competitive energy source.