The Hydrogen Council is a global CEO-led initiative that brings together leading companies with a united vision and long-term ambition for hydrogen to foster the clean energy transition. Hydrogen Insights is the Hydrogen Council’s summary of the current state of the global hydrogen sector and actual hydrogen deployment.
Hydrogen Insights 2023 the latest update from the Hydrogen Council and McKinsey & Company highlights strong growth across the project funnel with total investments increasing by 35% from May 2022 to January 2023. 9% of total investments have reached final investment decision (FID)up by 30% since May 2022.
The report tracks 1040 projects globally representing $320 billion in direct investment between now and 2030up from $240 billion. Approximately half of projects are focused on large-scale industrial applications with the next largest segment (20%) related to mobility. In mobility more than 1000 refueling stations are now in operation globally. Total announced electrolyzer capacity stands at 230 GW in 2030.
Momentum is spread globally with Europe leading on announcements while North America leads with committed investments ($10 billion). Europe ($7 billion) and China ($5 billion) follow with growth in China being the highest at more than 200%.
The industry is maturing during a time of strong headwinds which could slow deployment including strained supply chains labour shortage energy performance contracting (EPC) capacity increasing inflation and interest rates and permitting delays.
Despite progress committed projects lag behind targets. By 2030an increase of more than twentyfold would be required to track toward net zero objectives. Resources and equipment needs remain critical to ensure deployment of clean hydrogen supply projects prevent infrastructure bottlenecks and enable hydrogen-ready end user plants.
Hydrogen Insights 2023 also takes a deep dive into North America a region where there has been a 55% increase in announced investments since the previous Hydrogen Insights publication in September 2022. Production tax credits of up to $3/kg available in the Inflation Reduction Act (IRA) could potentially help significantly accelerate clean hydrogen in the US with up to $3/kg support.
Bernd Heid Senior Partner at McKinsey said: “North America has been a real engine of growth: it now accounts for 30% of committed funding and 70% of committed clean hydrogen production.”
