Hydrogen (company)

Hydrogen is gathering strong momentum as a key energy transition

pillar

Underpinned by a global shift of regulators, investors, and consumers toward decarbonization,

hydrogen (H2) is receiving unprecedented interest and investments. 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.

Similarly, having grown from 60 to over 100 members since 2020, the Hydrogen Council now

represents more than 6.6 trillion in market capitalization and more than 6.5 million employees globally.

This report provides an overview of these developments in the hydrogen ecosystem. It tracks

deployments of hydrogen solutions, associated investments and the cost competitiveness of

hydrogen technologies and end applications. Developed collaboratively by the Hydrogen Council and

McKinsey & Company, it offers a fact-based, holistic, quantitative perspective based on real industry

data. Along with the report, the Hydrogen Council is launching Hydrogen Insights - a subscription

service that provides granular insights and data about the hydrogen ecosystem and its development.

Deployment and investments: Announced hydrogen investments

have accelerated rapidly in response to government commitments

to deep decarbonization

More than 200 hydrogen projects now exist across the value chain, with 85% of global projects

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.

On a company level, members in the Hydrogen Council are planning a sixfold increase in their total

hydrogen investments through 2025 and a 16-fold increase through 2030 They plan to direct most of

this investment toward capital expenditures (capex), followed by spending on merger and acquisition

(M&A) and research and development (R&D) activities.

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. 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.

Hydrogen is gathering strong momentum as a key energy transition

pillar

Underpinned by a global shift of regulators, investors, and consumers toward decarbonization,

hydrogen (H2) is receiving unprecedented interest and investments. 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.

Similarly, having grown from 60 to over 100 members since 2020, the Hydrogen Council now

represents more than 6.6 trillion in market capitalization and more than 6.5 million employees globally.

This report provides an overview of these developments in the hydrogen ecosystem. It tracks

deployments of hydrogen solutions, associated investments and the cost competitiveness of

hydrogen technologies and end applications. Developed collaboratively by the Hydrogen Council and

McKinsey & Company, it offers a fact-based, holistic, quantitative perspective based on real industry

data. Along with the report, the Hydrogen Council is launching Hydrogen Insights - a subscription

service that provides granular insights and data about the hydrogen ecosystem and its development.

Deployment and investments: Announced hydrogen investments

have accelerated rapidly in response to government commitments

to deep decarbonization

More than 200 hydrogen projects now exist across the value chain, with 85% of global projects

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.

On a company level, members in the Hydrogen Council are planning a sixfold increase in their total

hydrogen investments through 2025 and a 16-fold increase through 2030 They plan to direct most of

this investment toward capital expenditures (capex), followed by spending on merger and acquisition

(M&A) and research and development (R&D) activities.

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. 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.