Hydrogen Market Faces Hurdles: Key Projects Stalled in 2025

2025-02-17 industry

London, Monday, 17 February 2025.
In 2025, the hydrogen market sees a slowdown as major investments retract due to project cancellations. Despite financial instability, some projects still advance, highlighting hydrogen’s diverse global ambitions.

Market Value and Growth Challenges

I’ve been analyzing the European hydrogen market, which reached USD 40.2 billion in 2024 [3]. Despite projections of a 4.2% growth rate through 2034 [3], we’re seeing significant headwinds. Technology providers are facing financial instability [1], and major players are scaling back investments. A striking example is Johnson Matthey’s dramatic 83% reduction in hydrogen business investment, cutting from £30 million to just £5 million [1].

Project Progress Mixed Signals

In tracking recent developments, I’ve noticed some positive momentum alongside the challenges. GreenH achieved a significant milestone with its 20 MW Bodø project reaching Final Investment Decision in January 2025 [1]. However, this progress is overshadowed by project freezes, such as Repsol’s suspension of 350 MW of projects in October 2024 [1]. The Spanish government is making ambitious moves with a €1.3 billion initiative for hydrogen hubs [1], yet industry leaders like Iberdrola’s executive chairman point to insufficient support for hydrogen development [1].

Market Uncertainties and Future Outlook

Looking at the current landscape, I can see that uncertainty about tax treatment [2] and elevated interest rates are creating significant hurdles. The market faces additional pressure from supply chain disruptions and inflation [2]. Despite these challenges, some developments show promise - Moeve is planning to begin construction on a massive 2 GW electrolytic hydrogen project in Huelva by summer 2025 [1]. The global hydrogen storage alloys market is expected to reach US$ 3,674.1 million in 2025 [5], suggesting long-term growth potential despite current market turbulence.

Bronnen

hydrogen market investment challenges