The global hydrogen electrolyser development pipeline has reached an impressive 1.2 terawatts (TW), with 55.2 gigawatts (GW) of new projects added in just the past six months, according to the latest Q2 2024 European Hydrogen Market Report (HyMaR) by Aurora Energy Research. This rapid growth underscores a surge in international momentum for clean hydrogen infrastructure, with Europe leading in development despite mounting challenges.
Currently, around 90% of the projects tracked are in early planning phases, while 130–140 GW represent more advanced developments. About 15 GW of projects have reached the Final Investment Decision (FID) stage, accounting for roughly 12% of global projects that are either operational or under construction. The operational global capacity now stands at 1.9 GW, having grown by over 1.1 GW in the past six months.
Europe, led by Germany, continues to dominate the market, holding 32% of total global capacity. Germany alone has approximately 9 GW in advanced development, followed closely by the Netherlands and the UK. Despite policy support—especially from the updated EU hydrogen strategy—Aurora warns that Europe is significantly behind in achieving its targets. The projected electrolyser capacity of 35 GW by 2030 falls 76% short of the European Commission’s goals under the Net Zero Industry Act and REpowerEU plan.
High capital expenditure, increasing cost of capital, and uncertainty in offtake agreements are identified as major obstacles delaying investment. Cost estimates for hydrogen production across Europe vary between €4 and €20 per kilogram, with the Nordics and Spain offering the most competitive pricing. Spain, in particular, benefits from baseload production, helping stabilize costs.
Aurora Energy Research highlights that while the electrolyser buildout is accelerating, realizing its full potential will require stronger financial frameworks and policy certainty across markets.
Discover more from SolarQuarter
Subscribe to get the latest posts sent to your email.
