Global hydrogen demand increased to almost 100 million tonnes (mt) in 2024, up 2 per cent from 2023 and in line with overall energy demand growth, according to the Global Hydrogen Review report, 2025. This rise was driven by sectors that have traditionally consumed hydrogen, like oil refining and industry.
Demand from new applications accounted for less than 1 per cent of the total and was almost entirely concentrated in biofuels production. The supply of hydrogen continued to be dominated by fossil fuels, using 290 billion cubic metres (bcm) of natural gas and 90 million tonnes of coal equivalent (Mtce) in 2024. Low-emissions hydrogen production grew by 10 per cent in 2024 and is on track to reach 1 Mt in 2025, but it still accounts for less than 1 per cent of global production.
For the first time, potential low-emissions hydrogen production by 2030 based on announced projects has declined. Cancellations and delays mean that production that could be achieved based on industry announcements by 2030 stands now at 37 million tonnes per year (Mtpa), compared with 49 Mtpa by 2030 when the Global Hydrogen Review 2024 was published a year ago. Potential production fell for both projects using electrolysis and those using fossil fuels with carbon capture utilisation and storage (CCUS), although electrolysis projects were responsible for more than 80 per cent of the total drop.
Despite the recalibration of industry plans, low-emissions hydrogen production is expected to grow strongly by 2030. Low-emissions hydrogen production from projects that are today operational or have reached FID is set to reach 4.2 Mtpa by 2030, a fivefold increase compared with 2024 production. While this is much lower than government and industry ambitions at the start of this decade, it represents growth from less than 1% of total hydrogen production today to around 4 per cent in 2030.
China is the driving force in electrolyser deployment and manufacturing today. Global installed capacity of water electrolysis reached 2 gigawatts (GW) in 2024, and more than 1 GW of capacity has been added that through July of this year. China now accounts for 65 per cent of global installed capacity and capacity that has reached a final investment decision. China is also home to nearly 60 per cent of global electrolyser manufacturing capacity, with a growing offer from traditional manufacturers as well as new market entrants.
China factor
The cost of making and installing an electrolyser outside of China in 2024 was $2,000 to $2,600 per kilowatt (kW), compared with $600 to 1,200 per kW for electrolysers manufactured and installed in China.
However, the cost of equipment is just part of the total investment needed to install an electrolyser. More than half of the total corresponds to engineering, procurement, construction and contingency costs, which depend on the project location. When transport costs and tariffs are also considered, the cost of installing a Chinese electrolyser outside China is to $1,500 to $2,400 per kW – narrowing the gap with non-Chinese competitors.
New offtake agreements signed in 2024 reached 1.7 mtpa, compared with 2.4 Mtpa in 2023. However, some preliminary agreements signed in previous years were firmed, leading to investment in production projects. Existing uses of hydrogen in the refining and chemical sectors – and the use of hydrogen-based fuels in shipping and, to a smaller extent, aviation and power generation – account for almost all firm offtake agreements announced by the private sector to date and 80 per cent of investment in committed production projects.
Published on September 15, 2025