2024 State of the Industry Global Hydrogen Report Summary

As the hydrogen industry continues to evolve, staying informed about the latest trends, challenges, and opportunities shaping this rapidly expanding sector is no small feat. The 2024 State of the Industry Global Hydrogen Report, authored by Anna Vasileva and edited by Ivan Shumkov, offers timely and comprehensive insights into the hydrogen market, highlighting key developments in legislation, project financing, and infrastructure across major regions. Released in partnership with World Hydrogen Leaders, this report serves as a vital resource for anyone looking to understand the state of hydrogen globally.

Tied to World Hydrogen Week, where industry leaders gather to accelerate the future of hydrogen, this report couldn't be more relevant. For marketers, the insights provided here are invaluable. It’s not just about understanding the science and economics behind hydrogen; it’s about knowing how to position your company, build compelling narratives, and create strategic partnerships in a market that’s poised for exponential growth.

Whether it’s navigating regulatory frameworks in the EU and US or understanding how to secure critical offtake agreements, the data and trends in this report are crucial for crafting effective B2B marketing strategies. For businesses aiming to break into the hydrogen supply chain or scale their existing efforts, this report offers the foundational knowledge needed to capitalize on the opportunities ahead.

For businesses and especially marketing professional working in those companies (and organisations), it might feel like it’s one of those industries that’s buzzing with potential, but at the same time, many businesses are left scratching their heads, wondering how to capitalize on it. As we move into 2024, the industry is still facing growing pains—whether it's navigating complex regulations, securing financing, or finding the right partners to lock in those elusive offtake agreements.

At BrandHouzz, many of our clients are already dipping their toes into the hydrogen production and storage and other areas of the hydrogen supply chain, eager to carve out a slice of this evolving market. We’ve put together a guide to offer practical B2B marketing advice—rooted in the realities of today’s hydrogen landscape—to help businesses position themselves as go-to players in this space (or even just become a bit more visible: baby-steps for some are more comfortable and it’s ok).

But whether it's breaking through the noise with innovative marketing strategies or aligning with key regulatory shifts, our goal is to help you turn challenges into opportunities and, frankly, get you in front of the right people. So  Ready to dive in? Let’s go!

Here's the Report Summary:

Global Hydrogen Landscape:

• The clean hydrogen industry is growing rapidly, with over 1,400 projects announced globally by 2023, amounting to an estimated USD 570 billion in investments.

• Despite the momentum, challenges such as regulatory hurdles, high costs, infrastructure needs, and lack of demand (offtake agreements) have slowed down the rapid deployment of hydrogen projects.

2. Legislation and Regulations:

• Europe: The European Union (EU) has implemented various initiatives, such as the REPowerEU plan and the Important Projects of Common European Interest (IPCEI), aimed at achieving 10 million tonnes of renewable hydrogen production and an additional 10 million tonnes of imported hydrogen by 2030. The EU's regulations emphasize the importance of renewable fuels of non-biological origin (RFNBO) and impose strict conditions for qualifying hydrogen as renewable.

• United States: The Inflation Reduction Act (IRA) of 2022 has significantly boosted hydrogen investments, with the US government allocating USD 7 billion to create clean hydrogen hubs. New tax credits, like Section 45V, incentivize clean hydrogen production with increasing credit based on emissions levels.

• Australia: Australia's Hydrogen Headstart Programme has committed AUD 2 billion to renewable hydrogen projects, aiming to support large-scale developments and position the country as a key hydrogen exporter.

3. Key Markets:

• South America: Countries like Brazil and Chile are emerging as major players in the hydrogen sector. Brazil's Chamber of Deputies recently passed legislation promoting green hydrogen, while Chile is leveraging its abundant renewable energy resources to scale hydrogen production.

• China and India: China has set ambitious hydrogen goals, with plans to produce 100,000-200,000 tonnes of green hydrogen annually by 2025. India is also aggressively pursuing hydrogen development under its National Green Hydrogen Mission, targeting 5 million tonnes of hydrogen production by 2030.

4. Projects and Investments:

• New green hydrogen projects have been announced across regions like Africa, South America, and the Middle East. Notable projects include:

  • GreenGo Energy Group's Megaton Moon in Mauritania, which plans to produce 4 million tonnes of green hydrogen annually.

  • Verano Energy's 25 GW initiative in Chile’s Antofagasta region and a similar project in Peru, aiming to produce green ammonia.

• However, despite these announcements, only 13% of projected hydrogen volumes have secured offtake deals, which are critical for financing and scaling these projects.

5. Final Investment Decisions (FIDs):

• In 2023, only 12 green hydrogen projects passed the FID stage, representing 3.2 GW of cumulative capacity. The report highlights that long-term offtake agreements are crucial for securing investment and scaling green hydrogen projects.

6. Conclusion:

• Green hydrogen is gaining recognition as a critical part of the global energy transition, but demand-side support, regulatory frameworks, and more robust offtake agreements are needed to overcome barriers to widespread adoption.

• Governments and private stakeholders need to work collaboratively to accelerate the industry's growth, with a focus on creating incentives, infrastructure, and secure markets for clean hydrogen.

This report emphasizes the potential of green hydrogen in decarbonizing industries, while also acknowledging the need for more coordinated efforts to address the sector's economic and logistical challenges.

The guide? We’ll post it tomorrow, so watch this space, as they say.