The pipeline of hydrogen projects is continuing to grow, but actual deployment is lagging. 680 large-scale project proposals worth USD 240 billion have been put forward, but only about 10% (USD 22 billion) have reached final investment decision (FID). While Europe leads in proposed investments (~30%), China is slightly ahead on actual deployment of electrolyzers (200 MW), while Japan and South Korea are leading in fuel cells (more than half of the world’s 11 GW manufacturing capacity).
Hydrogen is central to reaching net zero emissions because it can abate 80 gigatons of CO2 by 2050
Hydrogen has a central role in helping the world reach net-zero emissions by 2050 and limit global warming to 1.5 degrees Celsius. Complementing other decarbonization technologies like renewable power, biofuels, or energy efficiency improvements, clean hydrogen (both renewable and low carbon) offers the only long-term, scalable, and cost-effective option for deep decarbonization in sectors such as steel, maritime, aviation, and ammonia. From now through 2050, hydrogen can avoid 80 gigatons (GT) of cumulative CO2 emissions. With annual abatement potential of 7 GT in 2050, hydrogen can contribute 20% of the total abatement needed in 2050.a This requires the use of 660 million metric tons (MT) of renewable and lowcarbon hydrogen in 2050, equivalent to 22%b of global final energy demand.
