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Green Hydrogen Leaders – Q3 2024

By the end of Q3 2024, the total active and pipeline capacity of low-carbon hydrogen reached approximately 175mtpa, of which approximately 90% comes from green plants. Green Hydrogen International, GreenGo Energy Group, TotalEnergies SE, Adani Enterprises, Fortescue Future Industries, and BP Plc are the leading companies proposing to develop green hydrogen production capacity.
Electrolyzers are the key technology for generating green hydrogen from renewable power. In Q3 2024, the upcoming electrolyzer capacity reached almost 719 GW. Manufacturers such as Siemens Energy, Plug Power, Hydrogenics, ThyssenKrupp, NEL ASA, and John Cockerill Group are the leading electrolyzer manufacturers based on the hydrogen production capacity of their respective projects.
With EPC contractors playing a vital role in the execution of green hydrogen projects, many EPC contractors are aiming to increase their presence in this space. The leading EPC companies for green projects are Samsung Group, Hyphen Hydrogen Energy Pty Ltd, Aker Solutions, China Energy Engineering Corp (CEEC), H2-Industries Inc, Murray & Roberts Holdings Ltd., and TSK Grupo.

In Q3 2024, just under 700ktpa of green hydrogen capacity was announced. This represents a decline in growth compared to Q2 2024, where the announced capacity of green hydrogen was 2.2mtpa. In terms of project volume, across the quarter, 12 projects were announced. This is two less than the project announcements from the previous quarter.

Green hydrogen is a nascent industry; however, progress is gaining traction as governments implement supporting policies and frameworks. The enduring challenge facing scaling green hydrogen remains high costs across its value chain. Furthermore, the sectors currently demanding hydrogen, chiefly the refining and chemical sectors, lack the incentive to shift away from hydrogen produced using fossil fuels due to the high cost of green hydrogen production compared to grey. Governments must significantly increase the incentive to switch to support the emergence of the full project pipeline.

A lack of long-term certainty surrounding hydrogen demand amid a challenging macroeconomic environment characterized by high inflation and spiraling project costs makes the decision-making process for the upfront and final investment of large-scale green hydrogen production even more challenging.