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

Try Premium for just $1

  • Full premium access for the first month at only $1
  • Converts to an annual rate after 30 days unless cancelled
  • Cancel anytime during the trial period

Premium Benefits

  • Expert industry analysis and interviews
  • Digital access to PV Tech Power journal
  • Exclusive event discounts

Or get the full Premium subscription right away

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

Premium
October 8, 2025
PV Talk: Smart Energy Council's Nigel Morris reflects on how Australia has become a global testbed for distributed solar and storage innovation.
October 8, 2025
University of Sydney scientists have created the largest and most efficient triple-junction perovskite-perovskite-silicon solar cell on record.
Premium
October 8, 2025
The global energy transition will only be 'marginally impacted' by uncertainties in US energy policy, according to Remi Eriksen, CEO of DNV.
October 8, 2025
Australia's NEM achieved a new minimum operational demand record of 9,666MW, marking a 4% decrease from the previous record.
October 8, 2025
Frontier Energy plans to expand its Waroona Renewable Energy Project into a renewable energy precinct by 2031, targeting up to 1GW solar.
October 7, 2025
Econergy will acquire 100% stake in the 155MW Ratesti solar project in Romania, further expanding its European renewable energy portfolio.

Subscribe to Newsletter

Upcoming Events

Solar Media Events
October 21, 2025
New York, USA
Solar Media Events
November 25, 2025
Warsaw, Poland
Solar Media Events
December 2, 2025
Málaga, Spain
Solar Media Events
February 3, 2026
London, UK