A recent study has shown that by 2030, approximately 38 million tonnes per annum (Mtpa) of clean hydrogen will be produced worldwide, with 25Mtpa of this being green hydrogen. This is a significant increase from the less than 1Mtpa of clean hydrogen currently being produced as of early 2024.
The growth in the target for clean hydrogen production can be attributed to a number of factors, including recent subsidies and financial support from various initiatives. In October 2023, the US Department of Energy announced a $7bn stimulus package for regional clean hydrogen hubs, which could contribute to an increased target for clean hydrogen production. Additionally, financial support from EU green hydrogen auctions and UK’s Contracts for Difference tenders, as well as tax incentives for green hydrogen production announced by countries like India, China, Australia, Japan, and South Korea could also drive growth in the industry.
These global incentives aim to make large-scale green hydrogen projects financially viable. In May 2023, NEOM made a Final Investment Decision on its 2.2GW $8.4bn green hydrogen and ammonia project in Saudi Arabia, with commercial operations expected to begin in 2026. As the prospect of gigascale green hydrogen production becomes more feasible and with the promise of growing fiscal support
