Government inaction, investment shortfalls hindering global green hydrogen push

Facebook
Twitter
LinkedIn
Reddit
Email
An animation showcasing the potential for green hydrogen in Australia, produced by ARENA. Image: ARENA.

An investment shortfall and government inaction are stymying the growth of green hydrogen globally, potentially creating a shortfall by 2030.

That is the key finding of a new report published by the Institute for Energy Economics and Financial Analysis (IEEFA), which has claimed the green hydrogen industry needs to significantly increase its pace in order to meet demand.

This article requires Premium SubscriptionBasic (FREE) Subscription

Unlock unlimited access for 12 whole months of distinctive global analysis

Photovoltaics International is now included.

  • Regular insight and analysis of the industry’s biggest developments
  • In-depth interviews with the industry’s leading figures
  • Unlimited digital access to the PV Tech Power journal catalogue
  • Unlimited digital access to the Photovoltaics International journal catalogue
  • Access to more than 1,000 technical papers
  • Discounts on Solar Media’s portfolio of events, in-person and virtual

Or continue reading this article for free

IEEFA’s Yong Por, author of the ‘Great Expectations’ report, analysed the announcement of 50 new projects announced over the course of the last year to conclude that Europe, Australia and Asia were leading the hydrogen charge, backing the majority of new green hydrogen projects that have emerged.

These projects are being supported by improving economics for hydrogen production, falling costs of renewable power and the presence of existing gas pipelines which can be used to transport produced hydrogen to meet more localised demand centres.

But these projects could face delays, Por said, due to ongoing uncertainties surrounding financing, amidst other issues, with the need for more public-private initiatives needed to overcome more specific hurdles. In addition, more significant scale in the manufacture of electrolysers and other associated equipment will be necessary.

“Governments will also need to get behind these new projects and work hand-in-hand with industry as the world transitions away from fossil fuels into cleaner renewable energies,” Por said, stating that green hydrogen stood to be a “key technology enabler” for integrating further renewable power onto worldwide grids.

But government initiatives around the globe have lacked ambition. The report concludes the European Union’s green hydrogen strategy – which wants 40GW of electrolysers to be deployed by 2030, with up to 120GW of new renewable capacity to power them – to be the most ambitious, being the only plan with a “key focus on the long game”.

Australia’s plans for green hydrogen, which is linked to a target of producing hydrogen at AU$2/kg or cheaper by 2030, contains the most ambitious export strategy.

But more is needed to be done, Por said.

“Governments need to urgently back this industry by developing policy settings encouraging private industry to invest the much needed capital, given the industry must ‘learn by doing’,” says Por.

“Until then, we are likely to see project delays as proponents struggle with still absent project viability, evidenced by only 14 of the 50 new projects having started construction with 34 at a study or memorandum of understanding stage.”

A conference session held as part of last week’s Green Hydrogen Virtual Summit, organised by PV Tech publisher Solar Media, reached similar conclusions, with the need for relaxed permitting rules highlighted by panellists as vital for paving the way for the significant quantities of new renewable generation required for Europe’s green hydrogen economy to take off.

2 December 2025
Málaga, Spain
Understanding PV module supply to the European market in 2026. PV ModuleTech Europe 2025 is a two-day conference that tackles these challenges directly, with an agenda that addresses all aspects of module supplier selection; product availability, technology offerings, traceability of supply-chain, factory auditing, module testing and reliability, and company bankability.
10 March 2026
Frankfurt, Germany
The conference will gather the key stakeholders from PV manufacturing, equipment/materials, policy-making and strategy, capital equipment investment and all interested downstream channels and third-party entities. The goal is simple: to map out PV manufacturing out to 2030 and beyond.

Read Next

June 10, 2025
Australia’s Queensland government has confirmed an AU$2.4 billion investment in the CopperString transmission project, aiming to extend the National Electricity Market (NEM) to the North West Minerals Province.
June 9, 2025
Sonnedix has signed a power purchase agreement (PPA) with Renfe to supply 420GWh of renewable energy annually for its commercial operations.
June 6, 2025
Eternal Sun has acquired German solar simulator provider Wavelabs, which has resulted in the formation of a new subsidy, Wavelabs Eternal Sun.
Premium
June 6, 2025
Europe must secure the 'strategic segments' of the solar supply chain, according to experts at a PV Tech panel at this year's Intersolar event.
June 6, 2025
Australia’s Solar Energy Industries Association (SEIA) has called on Australia’s climate change and energy minister, Chris Bowen, to “urgently intervene” on a rule change that could threaten to derail the uptake of rooftop solar PV.
June 6, 2025
ElectraNet has revealed that renewables supplied 100% of South Australia's electricity demand for 27% of 2024, roughly 99 days.

Subscribe to Newsletter

Upcoming Events

Solar Media Events
June 17, 2025
Napa, USA
Upcoming Webinars
June 30, 2025
10am PST / 6pm BST
Solar Media Events
July 1, 2025
London, UK
Solar Media Events
July 1, 2025
London, UK
Solar Media Events
September 16, 2025
Athens, Greece