The Global Hydrogen Review 2025 reported that announced clean hydrogen production projects have shrunk from 49 million tonnes per annum (mtpa) to 37 mtpa, due to cancellations and delays. The IEA reiterated that FIDs “continue to trail well behind announcements.”

However, projects that are already operational or at final investment decision (FID) are on track to deliver 4.2 Mtpa by 2030, lifting clean hydrogen from about 1% of global production today to around 4% by the end of the decade.

“This low-emissions hydrogen growth to 2030 would resemble the fast expansions of other clean energy technologies seen in recent years, such as solar PV,” the IEA said.

The agency added that if effective policies are implemented to create demand and facilitate offtake, an additional six million tonnes of hydrogen production projects could be operational by 2030.

And despite the gap between announcements and FIDs, more than 200 hydrogen projects have reached FID since 2020 – a major jump from the handful of demonstration projects operating at that time.

“The latest data indicates that the growth of new hydrogen technologies is under pressure due to economic headwinds and policy uncertainty,” explained IEA Executive Director, Fatih Birol.

“But we still see strong signs that their development is moving ahead globally. To help growth continue, policy makers should maintain support schemes, use the tools they have to foster demand, and expedite the development of necessary infrastructure.”

According to the IEA, global hydrogen demand reached nearly 100 million tonnes in 2024, up 2% from 2023 and broadly in line with overall energy demand growth.

The vast majority was still produced from unabated fossil fuels, with refining and heavy industry remaining the largest consumers.

Nevertheless, the clean hydrogen pipeline has fallen, echoing Hydrogen Council findings with McKinsey that committed projects are typically small, while the larger ones are more often shelved.

The IEA signalled a shift toward pragmatism, urging support for shovel-ready projects in established hydrogen uses such as refining, rather than relying on mega-projects which are increasingly being shelved or unproven new markets.