Global planned green hydrogen capacity reaches 94 GW by 2030

The total planned electrolysis capacity for global green hydrogen production reached 94 GW up to 2030, implying about 11 million tonnes of green hydrogen production by the end of the decade. The total cumulative installed electrolysis capacity for green hydrogen production stood under 200 MW globally in 2020, H2 Bulletin Research ascertains.

Although the announced capacity sounds humongous, it would amount to just 15% of the global hydrogen production at current levels.

Currently, the estimated hydrogen production is around 75 million tonnes, which is mainly produced from fossil fuel. Electrolysis is almost negligible in the hydrogen production matrix and is making up 0.5% of the total global production share.

Most major projects are formed through partnership that is an ideal way to develop the project’s entire value chain and keep the demand and supply in balance. A strong consortium can easily absorb Capex with mixed financing strategy and easily get access to the funding.

Some projects are up-and-coming and are planned to build on sites for captive supply to replace fossil fuel-based hydrogen to decarbonise production and save on carbon taxes. Others raised bets on synthetic fuels to produce carbon-neutral fuel. All in all, these projects are essentials for setting the foundation of the green hydrogen economy.

Operating costs can be an issue for green hydrogen projects, with renewable energy is the main cost component. Most projects are now skewed towards offshore wind or solar rich areas to play on costs, while others opting for hydropower. Some of them target export markets with ammonia and synthetic fuel as a quick fix to transportation and storage.

This article is based on the latest update of the H2 Bulletin Research subscription report, Global Electrolyser Market Tracker. H2 Bulletin Research team currently tracks around 500 green hydrogen projects and updates the database regularly.