The global pipeline for hydrogen electrolyser projects has increased by 55.2 GW in the past six months, reaching about 1.2 TW, although 90% of these projects are still in early phases, according to the Q2 2024 European Hydrogen Market Report by Aurora Energy Research.
The total operational capacity is approaching 2 GW and about 130 GW–140 GW of projects are in more advanced stages. The projects that have achieved final investment decisions (FIDs) are about 15 GW.
Europe accounts for the largest share, 32% of project development capacity, followed by Oceania with 21%.
Aided by a progressing policy framework, Germany is the leading electrolyser development market in Europe, with about 9 GW in advanced stages, followed by the Netherlands and the UK.
“The positive impact of clearer policy frameworks and support schemes is evident in electrolyser projects globally, with new projects as well as some of the existing ones reaching a Final Investment Decision (FID). However, further cooperation still remains a prerequisite for the realisation of national targets and the successful rollout of a future hydrogen market,” commented Dilara Caglayan, research lead at Aurora Energy Research.
Aurora projects that by 2030, Europe’s installed electrolyser capacity is expected to reach 35 GW, falling 76% short of targets outlined by the EC’s Net Zero Industry Act and REpowerEU due to high electrolysers’ capex, rising cost of capital and uncertainty in offtake agreements.
The report also says that hydrogen production costs vary a lot across European countries, from EUR 4 (USD 4.3) to EUR 20 per kilogram, with the Nordics and Spain offering the lowest costs.
