Global hydrogen demand reached nearly 100 million tonnes (mt) in 2024, reflecting a 2 percent increase from 2023, according to the Global Hydrogen Review report for 2025. This upward trend aligns with overall energy demand growth and is propelled primarily by traditional hydrogen-consuming sectors like oil refining and industry.
Demand from emerging applications constituted less than 1 percent of total hydrogen consumption, predominantly focused on biofuels production. Hydrogen supply remained largely reliant on fossil fuels, utilizing 290 billion cubic meters (bcm) of natural gas and 90 million tonnes of coal equivalent (Mtce) in 2024. Notably, low-emissions hydrogen production grew by 10 percent, projected to reach 1 million tonnes by 2025, although it still represents less than 1 percent of global production.
For the first time, projections for potential low-emissions hydrogen production by 2030 based on announced projects have declined. Cancellations and delays have reduced the potential output to 37 million tonnes per annum (Mtpa), down from an earlier estimate of 49 Mtpa published in the Global Hydrogen Review 2024. This decrease affected both electrolysis projects and those employing fossil fuels with carbon capture, utilization, and storage (CCUS), with electrolysis initiatives responsible for more than 80 percent of the reduction.
Despite the adjustment in industry plans, growth in low-emissions hydrogen production is anticipated by 2030. Projects that are currently operational or have achieved final investment decision (FID) are expected to contribute 4.2 Mtpa by 2030—an increase from less than 1 percent of total hydrogen production today to approximately 4 percent by that year.
China emerged as the leader in electrolyser deployment and manufacturing, having reached a global installed capacity of water electrolysis of 2 gigawatts (GW) by 2024, adding over 1 GW of capacity by July of that year. With 65 percent of global installed capacity, China also dominates in electrolyser manufacturing, comprising nearly 60 percent of global production capabilities, along with a growing presence from established manufacturers and new entrants in the market.
In 2024, the cost of manufacturing and installing an electrolyser outside of China ranged from $2,000 to $2,600 per kilowatt (kW), while similar electrolysers produced and installed in China cost between $600 and $1,200 per kW. However, it is important to note that the cost of equipment constitutes only a portion of the total investment required for electrolyser installation. Engineering, procurement, construction, and contingency costs, which vary by project location, represent more than half of the total expenditure. When factoring in transportation costs and tariffs, the price of installing a Chinese electrolyser outside of China ranges from $1,500 to $2,400 per kW, effectively narrowing the price gap with non-Chinese competitors.
In 2024, new offtake agreements totaled 1.7 Mtpa, down from 2.4 Mtpa in 2023. Nevertheless, some preliminary agreements established in prior years were confirmed, leading to increased investment in production projects. Existing applications of hydrogen within the refining and chemical sectors, as well as the use of hydrogen-based fuels in shipping—and to a lesser extent in aviation and power generation—account for nearly all of the firm offtake agreements announced by the private sector to date, comprising 80 percent of the investments in committed production projects.
Published on September 15, 2025.
