The green hydrogen industry is facing major challenges as several projects worldwide are being scaled back or canceled due to high production costs and weak demand. This slowdown puts at risk ambitious climate targets, such as the European Union’s goal to reach 40 gigawatts of green hydrogen capacity by 2030 — current projections suggest only about 12 gigawatts will be operational by then. Despite efforts to boost production, the cost of green hydrogen, which is produced by splitting water using renewable energy, remains significantly higher than fossil fuel alternatives, making it difficult for many companies to secure long-term contracts.
Countries across Europe are feeling the impact. Spain and Portugal, once leaders in green hydrogen development thanks to generous subsidies and abundant renewable energy, are seeing project delays and cancellations. Similarly, France, Italy, and the Netherlands have either reduced funding or shifted focus away from hydrogen initiatives due to regulatory uncertainties and infrastructure challenges. Outside Europe, nations like Australia and Japan, which had ambitious green hydrogen plans tied to export markets and industrial use, are also reassessing timelines as economics and demand forecasts shift. Experts warn that without stronger policy support, clear regulations, and increased investment, green hydrogen’s role in achieving global decarbonization goals could be seriously undermined. More