Released October 15, 2025 | GALWAY, IRELAND
en
Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland)--Europe will only be able to supply slightly more than half of the green hydrogen it needs to meet its 2030 targets, with only a quarter of announced projects currently under construction.
The clean hydrogen supply outlook has been lowered to 2.3 million tonnes per year (mt/yr) from 2.5 mt/yr made last year, which will force the European Union (EU) to rely heavily on imports to hit its targets, according to the latest data from Hydrogen Europe, the association representing Europe's hydrogen suppliers. In 2020 the EU set a goal of having 6 gigawatts (GW) of electrolysis capacity installed by 2024 but fell massively short with just 600 megawatts (MW) operational and only 2.8 GW under construction as of July 2025.The 2.3-mt/yr capacity will be comprised of 1.7-mt/yr of output from electrolysis and 600,000 t/yr of "thermochemical" capacity, which is produced mainly from natural gas as feedstock with carbon capture and storage (CCS).
Hydrogen Europe said that most of the reduction compared with last year's figure is coming from the thermochemical side because of expected delays to CCS-based projects in the U.K. and in the Benelux region. Industrial Info is tracking more than 1,500 green hydrogen-related projects, from plants to pipelines, worth US$231 billion in investment. Subscribers to Industrial Info's Global Market Intelligence (GMI) Project Database can click here for the reports.
"In this Clean Hydrogen Monitor 2025 report we estimate that only 60% of the total regulatory demand could be met by 2030," explained Daniel Fraile Chief Policy & Market Officer of Hydrogen Europe. "For this to happen, we will need to see exponential growth of final investment decisions (FID) in the next 18 months. So far, only a quarter of the expected 2030 operational capacity has taken FID. Offtaker incentives and effective funding schemes are critical to advance the more mature projects and close the cost gap between clean hydrogen and its fossil alternatives." Industrial Info recently assessed the troubled state of the global green hydrogen sector and the difficulties it is facing. For additional information, see August 22, 2025, article--The Green Hydrogen Bubble - A Pop Heard Around the World.
Between September 2024 and July 2025, only 517 MW of European green hydrogen projects reached FID, compared to 730 MW reaching FID in Q3 2024 alone, Hydrogen Europe found. Out of 2,840 MW under construction in Europe, 94% of that capacity is located in just eight countries. Germany leads with 993 MW under construction. This year is notable in that the first two 50-plus-MW electrolysers were deployed in Germany and Denmark. Hydrogen Europe expects the scaling up to continue with next year expected to see the commissioning of the first 100-plus-MW project.
Fraile warned that Europe is falling behind the green hydrogen efforts of other global players. "While imports play an increasingly important role, what is more remarkable is the speed at which China and India are progressing on the hydrogen journey. They are establishing themselves both as hydrogen production hubs as well as technology suppliers in an increasingly fragmented global market. Europe is at a crossroads today, not only at risk of failing to achieve its own climate goals, but of becoming a spectator of the revolution the hydrogen sector is about to experience globally. Policymakers still have time to set the correct implementation paths and enable the technology to not only support decarbonisation but also improve the resilience of the European energy system."
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
The clean hydrogen supply outlook has been lowered to 2.3 million tonnes per year (mt/yr) from 2.5 mt/yr made last year, which will force the European Union (EU) to rely heavily on imports to hit its targets, according to the latest data from Hydrogen Europe, the association representing Europe's hydrogen suppliers. In 2020 the EU set a goal of having 6 gigawatts (GW) of electrolysis capacity installed by 2024 but fell massively short with just 600 megawatts (MW) operational and only 2.8 GW under construction as of July 2025.The 2.3-mt/yr capacity will be comprised of 1.7-mt/yr of output from electrolysis and 600,000 t/yr of "thermochemical" capacity, which is produced mainly from natural gas as feedstock with carbon capture and storage (CCS).
Hydrogen Europe said that most of the reduction compared with last year's figure is coming from the thermochemical side because of expected delays to CCS-based projects in the U.K. and in the Benelux region. Industrial Info is tracking more than 1,500 green hydrogen-related projects, from plants to pipelines, worth US$231 billion in investment. Subscribers to Industrial Info's Global Market Intelligence (GMI) Project Database can click here for the reports.
"In this Clean Hydrogen Monitor 2025 report we estimate that only 60% of the total regulatory demand could be met by 2030," explained Daniel Fraile Chief Policy & Market Officer of Hydrogen Europe. "For this to happen, we will need to see exponential growth of final investment decisions (FID) in the next 18 months. So far, only a quarter of the expected 2030 operational capacity has taken FID. Offtaker incentives and effective funding schemes are critical to advance the more mature projects and close the cost gap between clean hydrogen and its fossil alternatives." Industrial Info recently assessed the troubled state of the global green hydrogen sector and the difficulties it is facing. For additional information, see August 22, 2025, article--The Green Hydrogen Bubble - A Pop Heard Around the World.
Between September 2024 and July 2025, only 517 MW of European green hydrogen projects reached FID, compared to 730 MW reaching FID in Q3 2024 alone, Hydrogen Europe found. Out of 2,840 MW under construction in Europe, 94% of that capacity is located in just eight countries. Germany leads with 993 MW under construction. This year is notable in that the first two 50-plus-MW electrolysers were deployed in Germany and Denmark. Hydrogen Europe expects the scaling up to continue with next year expected to see the commissioning of the first 100-plus-MW project.
Fraile warned that Europe is falling behind the green hydrogen efforts of other global players. "While imports play an increasingly important role, what is more remarkable is the speed at which China and India are progressing on the hydrogen journey. They are establishing themselves both as hydrogen production hubs as well as technology suppliers in an increasingly fragmented global market. Europe is at a crossroads today, not only at risk of failing to achieve its own climate goals, but of becoming a spectator of the revolution the hydrogen sector is about to experience globally. Policymakers still have time to set the correct implementation paths and enable the technology to not only support decarbonisation but also improve the resilience of the European energy system."
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
