Europe leads globally in the number of announced hydrogen projects, with with Australia, Japan, Korea, China and the USA following as additional hubs
At the beginning of 2021, over 30 countries have released hydrogen roadmaps, the industry has announced more than 200 hydrogen projects and ambitious investment plans, and governments worldwide have committed more than USD 70 billion in public funding. This momentum exists along the entire value chain and is accelerating cost reductions for hydrogen production, transmission, distribution, retail, and end applications. Of the total hydrogen projects existing across the value chain, 85% of them are originating in Europe, Asia, and Australia, and activity in the Americas, the Middle East and North Africa accelerating as well.
If all projects come to fruition, total investments will exceed USD 300 billion in hydrogen spending through 2030 – the equivalent of 1.4% of global energy funding. However, only USD 80 billion of this investment can currently be considered “mature,” meaning that the investment is either in a planning stage, has passed a final investment decision (FID), or is associated with a project under construction, already commissioned or operational. The global shift toward decarbonization backed by government financial support and regulation is supporting this momentum. For instance, 75 countries representing over half the world’s GDP have net zero carbon ambitions and more than 30 have hydrogen-specific strategies. Governments have already pledged more than USD 70 billion and included new capacity targets and sector level regulation to support these hydrogen initiatives.
EU has announced a 40 GW electrolyzer capacity target for 2030 (up from less than 0.1GW, presently) - Hydrogen Council
With the advent of hydrogen giga-scale projects , hydrogen production costs can continue to fall
For example, the EU has announced a 40-gigawatt (GW) electrolyzer capacity target for 2030 (up from less than 0.1 GW today) and more than 20 countries have announced sales bans on internal combustion engine (ICE) vehicles before 2035. In the US, where federal emission standards for new vehicles have lagged behind those in the EU, state-level initiatives in California and 15 other states have set ambitious targets to transition not only passenger cars but also trucks to zero- emission status by 2035. In China, the 2021-24 fuel cell support program will see the equivalent of USD 5 billion spent on fuel cell vehicle deployment, with a strong emphasis on the development of local supply chains.