Clean Hydrogen Investment Surpasses $130 Billion as Energy Security Gains Importance

Global investment in clean hydrogen has surpassed USD 130 billion as governments and industries increasingly view the fuel as part of broader strategies for energy security, economic resilience and industrial development.

The figure comes from the Hydrogen Council’s Global Hydrogen Compass 2026, released in Brussels, which reports 6.9 million tonnes per annum (Mtpa) of committed clean hydrogen capacity across more than 570 projects worldwide. Around 90% of this committed capacity is either under construction or already operational.

The report, prepared by the Hydrogen Council in collaboration with McKinsey & Company and informed by input from around 70 global chief executives, points to continued expansion of the hydrogen sector alongside a shift in its strategic importance.

Global Hydrogen Capacity Continues to Expand

Global operational hydrogen capacity has nearly doubled over the past year, according to the report, and is expected to double again next year as projects currently under construction begin operations.

The expansion comes as governments reassess energy security and supply-chain resilience amid changing geopolitical priorities. Hydrogen is increasingly being considered alongside electrification and renewable energy as a tool that can support industrial development while reducing emissions from sectors that are difficult to electrify directly.

The report argues that hydrogen’s role is therefore extending beyond decarbonisation to include broader energy-system and industrial policy objectives.

China Leads Global Renewable Hydrogen Capacity

China remains the world’s largest market for committed renewable hydrogen capacity, accounting for more than half of the global total.

The country has also accounted for approximately 90% of new operational hydrogen capacity added globally since 2025, according to the Hydrogen Council.

Europe ranks second, leading the world in the number of hydrogen projects and recording a 35% increase in investment since 2025.

The United States, meanwhile, continues to lead in low-carbon hydrogen deployment, accounting for approximately 75% of globally committed low-carbon hydrogen and ammonia capacity.

Policy and Infrastructure Remain Critical

The experience of the leading hydrogen markets highlights the importance of supportive policy and infrastructure in moving projects from planning to execution.

The Hydrogen Council estimates that existing policies could unlock around 11 Mtpa of clean hydrogen demand by 2030. However, only about 6 Mtpa of that potential demand is currently supported by policies that have been enacted and enforced.

The remaining 5 Mtpa will require governments to accelerate implementation of existing policy commitments, the report says.

For policymakers, the report identifies incentives, mandates and effective carbon-pricing mechanisms as key measures for creating demand signals.

For industry, the challenge is to meet emerging demand at competitive costs while accelerating cost reductions and developing the infrastructure required to support hydrogen production, distribution and consumption.

Hydrogen’s Role in Energy Security

The report comes as energy security and resilience have become increasingly prominent considerations in national energy strategies.

Hydrogen can complement renewable electricity and direct electrification by providing an energy carrier for applications where electrification may be technically or economically challenging. It can also support industrial processes and energy-intensive sectors seeking to reduce emissions.

The Hydrogen Council argues that these characteristics are contributing to renewed interest in hydrogen as governments seek to combine decarbonisation with greater resilience and long-term industrial competitiveness.

Jaehoon Chang, Vice-Chair of Hyundai Motor Group and Co-Chair of the Hydrogen Council, said the debate has shifted from whether hydrogen can deliver to how fast countries choose to build. He said this year’s Compass highlights a clear lesson: wherever countries deploy hydrogen solutions suited to their context and support them with policy, competitive hydrogen ecosystems are taking hold.

Industry Calls for Integrated Energy Planning

François Jackow, CEO of Air Liquide and Co-Chair of the Hydrogen Council, said hydrogen is not only a decarbonization solution but also the indispensable partner to renewable electricity, adding that recognizing hydrogen’s systemic role will be essential to building secure, competitive and affordable energy systems for the future.

Ivana Jemelkova, CEO of the Hydrogen Council, said decision-makers need both robust market data and practical experience from those delivering projects on the ground, and that Global Hydrogen Compass 2026 complements the IEA’s Global Hydrogen Review by bringing together the collective perspective of industry leaders.

Hydrogen Industry Focus Shifts to Project Delivery

The latest figures indicate that the hydrogen sector is moving from a predominantly project-development phase toward broader deployment, with operational capacity and projects under construction increasing rapidly.

However, the report also highlights a gap between potential hydrogen demand and demand supported by implemented policy. Closing that gap will depend on governments translating announced measures into enforceable policies while industry works to reduce costs and establish the infrastructure needed for large-scale deployment.

The findings were presented through a dedicated global virtual event featuring Hydrogen Council Co-Chairs and CEOs from Baker Hughes, CF Industries, Port of Rotterdam and Sinopec. The report was also presented at the Hydrogen Energy Ministerial in Japan.