Green hydrogen developers are cancelling or delaying projects globally due to high costs and weak demand—posing a serious threat to emissions reduction targets and energy transition timelines.
In Europe, only about 20% of planned hydrogen projects are expected to go live by 2030, falling far short of the EU’s 40 GW target, according to Westwood Global Energy. “In the current state, I really don’t see the EU 2030 target being reached,” said Jun Sasamura, hydrogen manager at the firm.
Once seen as a cornerstone for decarbonizing heavy industry and transport, green hydrogen is proving too expensive for many sectors. EDP CEO Miguel Stilwell d’Andrade called it “an inflated expectation” now facing a “valley of disillusionment.” Despite hundreds of millions in subsidies, firms like EDP and Iberdrola have paused projects due to a lack of buyers.
Across Europe and beyond, more than a fifth of hydrogen projects were scrapped or postponed by the end of 2023. Analysts suggest early optimism overlooked the commercial viability of alternatives, prompting a recalibration of the sector’s role.
Despite the setbacks, countries like Germany, Australia, and Japan continue to back hydrogen with subsidies and policies—hoping to scale demand and bring down costs before momentum fades further.
Source:
Green Hydrogen Sahi Hai
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