In 2024, many green hydrogen projects were abandoned due to unfulfilled expectations of cost reductions. Despite its potential to reduce emissions, high production costs and complex design processes have hindered progress. Clean hydrogen remains four times more expensive than natural gas-based alternatives, leaving most projects without buyers.

Key initiatives, including Orsted’s US$175 million Swedish plant and BP’s early-stage projects, were canceled due to a lack of affordable long-term contracts.

While pure hydrogen production is expected to triple this year, challenges persist in decarbonizing industries like oil refining and metallurgy.

China and India are the only markets projected to achieve cost-competitive green hydrogen by 2040.