Low-emission hydrogen production can grow massively by 2030 but cost challenges are hampering deployment The number of announced projects for low-emission hydrogen production is rapidly expanding. Annual production of low-emission hydrogen could reach 38 Mt in 2030, if all announced projects are realised, although 17 Mt come from projects at early stages of development. The potential production by 2030 from announced projects to date is 50% larger than it was at the time of the release of the IEA’s Global Hydrogen Review 2022. Only 4% of this potential production has at least taken a final investment decision (FID), a doubling since last year in absolute terms (reaching nearly 2 Mt). Of the total, 27 Mt are based on electrolysis and low-emission electricity and 10 Mt on fossil fuels with carbon capture, utilisation and storage.

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Hydrogen demand is growing, with positive signals in key applications

Hydrogen demand reached 94 million tonnes (Mt) in 2021, recovering to above pre-pandemic levels (91 Mt in 2019), and containing energy equal to about 2.5% of global final energy consumption. Most of the increase came from traditional uses in refining and industry, though demand for new applications grew to about 40 thousand tonnes (up 60% from 2020, albeit from a low base).

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