February 24, 2025
Latest Status of Hydrogen Production Industry
As an efficient and sustainable clean energy, green hydrogen plays an irreplaceable and important role in the global energy transformation. It is not only the key to achieving the goal of carbon neutrality, but also an important solution for industrial decarbonization, transportation transformation and energy security. With the development of technological progress, policy support and international cooperation, green hydrogen’s role in the future energy system will be ever important.
As of 2024, the global hydrogen production industry has made significant progress in technological innovation, policy support, market expansion and major projects. Here are the latest news and trends in the hydrogen production industry.
1. Technological innovation
High-efficiency electrolyzer technology
Many companies have launched a new generation of high-efficiency electrolyzers, significantly reducing the cost of hydrogen production. For example, Nel Hydrogen and ITM Power have launched more efficient proton exchange membrane (PEM) electrolyzers with an efficiency of more than 75%.
China’s CSIC and Sungrow have made breakthroughs in alkaline electrolyzer (ALE) technology, with a single-tank hydrogen production capacity of more than 1,000 Nm³/h.
Solid Oxide Electrolyzer (SOEC)
SOEC technology operates at high temperatures and can reach efficiencies of more than 85%. Companies such as Bloom Energy and Sunfire are promoting the commercial application of SOEC, especially in the industrial field.
China’s Dalian Institute of Chemical Physics, Chinese Academy of Sciences, has successfully developed the first megawatt-level SOEC system and has put it into demonstration operation.
Photocatalytic hydrogen production
Photocatalytic hydrogen production technology has made a breakthrough, using solar energy to directly decompose water to produce hydrogen. Research teams from the Chinese Academy of Sciences and Tsinghua University have developed efficient photocatalysts that increase the solar energy conversion efficiency to more than 15%.
2. Policy support
Global policy promotion
EU: The EU continues to promote the “European Hydrogen Strategy”, planning to install 40 GW of electrolyzer capacity and produce 10 million tons of renewable hydrogen by 2030. The EU has also launched the “Hydrogen Bank” program to provide financial support for green hydrogen projects.
United States: The U.S. Department of Energy (DOE) announced that it will invest billions of dollars to support hydrogen technology research and development, focusing on promoting green hydrogen and blue hydrogen projects.
China: China has released the “Medium- and Long-Term Plan for the Development of the Hydrogen Energy Industry (2023-2035)”, proposing that by 2030, the amount of hydrogen produced by renewable energy will reach 1 million tons/year and the number of fuel cell vehicles will reach 500,000.
Carbon tariffs and hydrogen subsidies
Many countries have included hydrogen in the carbon tariff policy framework and provided additional subsidies for green hydrogen projects. For example, Germany and Japan have implemented a zero tariff policy on imported green hydrogen.
3. Market dynamics
Declining green hydrogen costs
With the decline in renewable energy costs and advances in electrolyzer technology, the cost of green hydrogen has dropped to $3-4/kg, close to the cost level of gray hydrogen and blue hydrogen.
The International Energy Agency (IEA) predicts that by 2030, the cost of green hydrogen will drop below $2/kg.
Hydrogen trade
A global hydrogen trade network is taking shape. Countries such as Australia, Saudi Arabia and the UAE are building large-scale green hydrogen export projects, with target markets including Japan, South Korea and Europe.
China has signed several green hydrogen import agreements with Middle Eastern countries and plans to import green hydrogen through sea and pipeline transportation.
Corporate cooperation and investment
Several energy giants have increased their investment in hydrogen energy. For example, Shell and BP plan to invest tens of billions of dollars in green hydrogen projects in the next five years.
Sinopec announced that it will invest 100 billion yuan in the development of the hydrogen energy industry during the 14th Five-Year Plan period.
4. Progress of major projects
Australia Asian Renewable Energy Center (AREH)
The project plans to build 26 GW of wind power and photovoltaic power generation facilities, with an annual output of more than 1 million tons of green hydrogen, and is expected to be put into operation in 2028.
NEOM project in Saudi Arabia
The NEOM green hydrogen project has entered the construction stage and plans to produce 1.2 million tons of green hydrogen annually, becoming one of the world’s largest green hydrogen projects.
Ordos project in Inner Mongolia, China
The State Energy Group launched the world’s largest wind and solar hydrogen production project in Ordos, with an annual output of 500,000 tons of green hydrogen, which is expected to be completed in 2025.
European Hydrogen Backbone
Europe is building a hydrogen pipeline network covering multiple countries, with plans to build 12,000 kilometers of hydrogen pipelines by 2030.
5. Green hydrogen application
Industrial sector
- Energy-intensive industries such as steel, chemicals and cement are accelerating the application of hydrogen. For example, Baowu Group is piloting hydrogen reduction technology in steel smelting to reduce carbon emissions.
- Chemical giants such as BASF and Dow are building green hydrogen plants to produce green chemicals.
Transportation sector
- The fuel cell vehicle (FCEV) market is growing rapidly. In 2023, global fuel cell vehicle sales exceeded 50,000 units, with major markets including China, South Korea and Japan.
- China is in a leading position in the field of fuel cell heavy trucks and buses, with sales exceeding 10,000 units in 2023.
Energy storage
Hydrogen, as a means of large-scale energy storage, is being piloted in areas rich in wind and solar power resources (such as Inner Mongolia and Qinghai) to solve the problem of renewable energy consumption.
6. International cooperation
Global Hydrogen Council
The Global Hydrogen Council released the Hydrogen Outlook Report 2024, calling on countries to strengthen cooperation and promote hydrogen technology standardization and trade facilitation.
China-Japan-South Korea Hydrogen Cooperation
China, Japan and South Korea signed a memorandum of cooperation on hydrogen energy, planning to strengthen cooperation in technology research and development, standard setting and trade.
Conclusion
As of 2024, the global hydrogen production industry has made significant progress in technology, policy, market and major projects. The decline in green hydrogen costs, increased policy support and deepening international cooperation are driving the rapid development of the hydrogen energy industry. In the future, with technological progress and market expansion, hydrogen energy is expected to become an important pillar of global energy transformation.
