Global Hydrogen Energy Industry: Coexisting Challenges and Opportunities

2025-10-16 10:06:44
news

Source: Economic Information Daily

Author: Zhou Wuying

As the challenge of global climate change becomes increasingly urgent, the transition to green and clean energy has become a consensus, and hydrogen energy has gradually emerged as one of the core pillars of energy strategies worldwide. Industry insiders believe that to address issues such as the lack of rules for hydrogen energy industrialization, cost challenges, and technological bottlenecks, only through global cooperation, experience sharing, and optimized layout can the development of the hydrogen energy industry be accelerated.

More Countries Formulate Hydrogen Energy Development Strategies

Amid the challenge of global warming, the green and clean transition of energy is undoubtedly an irresistible trend. Hydrogen energy, with its higher availability, significant carbon reduction effects, and broad downstream application scenarios, has become a key driver in the global energy transition.

Petra SCHWAGER, Director of the Climate and Technology Partnerships Division at the United Nations Industrial Development Organization (UNIDO), stated at the main forum of the 2025 International Hydrogen Energy and Fuel Cell Vehicle Conference & Exhibition held recently that the global hydrogen energy industry is undergoing a crucial transition. On one hand, uncertainties in policies and geopolitics are accelerating the restructuring of the industrial structure. On the other hand, emerging forces represented by China are propelling the hydrogen energy industry from demonstration applications to the stage of large-scale implementation and technological maturity. By the end of 2024, approximately 60 countries around the world had released hydrogen energy strategies.

Shin Seung-gyu, General Manager of the Energy and Hydrogen Policy Division at Hyundai Motor Group, noted that in 2020, South Korea enacted a dedicated law on hydrogen energy. Taking this law as a framework, the country has promoted the formulation of hydrogen energy standards to ensure the development of the hydrogen economy. In 2024, South Korea introduced a quota standard for clean hydrogen. Backed by policy support, South Korea has also developed a key roadmap for hydrogen energy and set specific targets for hydrogen supply and utilization. It plans to establish four hydrogen-focused industrial clusters, which will serve as hubs for hydrogen-related businesses and infrastructure development. To date, South Korea has promoted the adoption of a total of 40,000 hydrogen fuel cell vehicles.

Canada has a long history of hydrogen energy development and began exploring the use of hydrogen energy to diversify its energy mix at an early stage. The Canadian government provides substantial support for hydrogen energy development, including regulatory measures, financing incentives, tax preferences, and policies to encourage enterprises to adopt clean energy.

Tobias Brunner, General Manager of Germany’s Hynergy, mentioned that in Europe, Germany leads in green hydrogen projects. Nearly all European countries have their own hydrogen energy strategies, with the entire Europe aiming for a green hydrogen production capacity of 10 million tons per year by 2030, of which Germany accounts for 1 million tons per year. Europe has allocated significant funds to support the development of green hydrogen projects.

Li Yiran, Chief Representative of Berlin in China, stated that hydrogen energy and its derivatives are regarded as a top priority in Germany’s energy transition. She explained that in June 2020, Germany’s Federal Ministry for Economic Affairs and Energy released the National Hydrogen Strategy; in July 2023, it issued an updated strategy setting a vision for 2030; and in July 2024, it launched the Import Strategy for Hydrogen and Its Derivatives as a supplement to the overall hydrogen energy strategy.

Li Ke, Managing Director and Global Partner at Boston Consulting Group, pointed out that to achieve the goals set by the Paris Agreement, the global demand for low-carbon hydrogen energy is expected to reach nearly 28 million tons by 2030. Meanwhile, as economies of scale gradually take shape and cost competitiveness becomes increasingly prominent, the global demand for hydrogen energy is expected to exceed 370 million tons by 2030. Among the various downstream application scenarios, the technological advantages of low-carbon hydrogen energy in the transportation sector will gradually become apparent in the future. He stated that since 2023, the construction of global low-carbon hydrogen energy production capacity has developed rapidly, with a growth rate of nearly 200% from the beginning of 2023 to the end of 2024. The penetration rate of products based on fuel cells (as the main technological route) will increase from 4% in 2030 to approximately 15% in 2035.

Kondo Kouta, Head of the Hydrogen Business Division at Toyota China, also believes that the global hydrogen energy industry will expand rapidly by 2030, driven by China, Europe, and the United States—these countries and regions will lead the continuous expansion of hydrogen energy market demand.

Pan Feng, General Manager of Faurecia Hydrogen China, predicted that by around 2030, electric vehicles will account for approximately 70% of the commercial vehicle market, while the share of hydrogen-powered vehicles will rise to around 30%.

Coexisting Challenges and Opportunities in Hydrogen Energy Development

Against the backdrop of hydrogen energy reshaping the competitive landscape, countries have achieved breakthroughs in multiple areas such as hydrogen refueling network construction, capital investment, and international cooperation. However, at the same time, industry insiders at home and abroad generally agree that the development of the hydrogen energy industry still faces numerous challenges.

Petra SCHWAGER argued that there is currently a lack of international standards and certifications, and relevant investments need to be continuously increased in the future. She stated that although the capital committed by the European Union to hydrogen energy development has increased sevenfold from 2020 to 2024, it still needs to be further boosted to achieve the set goals. Meanwhile, technologies related to carbon capture, utilization, and hydrogen storage also face significant challenges. Last year, global carbon dioxide emissions still increased. Therefore, she emphasized the urgency of the global energy revolution.

To achieve hydrogen energy development goals, Petra SCHWAGER believes that technological innovation, investment, and policy support are required, as well as the establishment of unified standards at both national and global levels.

From the perspective of bottlenecks in the development of hydrogen fuel cell vehicles, Kondo Kouta suggested that the cost of the entire industrial chain should be reduced—including affordable vehicles and low-cost hydrogen—and the convenience of hydrogen use should be improved. Only in this way can the development goals of hydrogen fuel cell vehicles be achieved.

Li Ke pointed out that three factors are needed to drive the development of the industry in the future: first, policy guidance; second, economies of scale and cost competitiveness brought by the rapid deployment of production capacity; and third, technological upgrades across all links of the industrial chain to promote the rapid industrialization of hydrogen energy and thus realize its wide application.

Zhao Tiantian, Analyst of Hydrogen Energy and Derivatives at Wood Mackenzie, stated that from the perspective of long-term global market demand outlook, sectors such as traditional industry, e-fuels, and power carbon reduction will account for more than two-thirds of the global demand for low-carbon hydrogen projects by 2050.

Strengthening International Cooperation Is Crucial

Industry insiders believe that for the hydrogen energy industry to achieve breakthrough development in the next 5 to 10 years, in addition to measures such as diversified technological integration and collaboration around commercial scenarios, and leveraging industrial clusters to exert agglomeration effects, it is also necessary to promote international exchanges and cooperation, share technologies, and accelerate the implementation of R&D and applications.

Petra SCHWAGER emphasized that global cooperation is essential in areas such as financing, regulation, and trade. At the same time, efforts should be made to continuously improve low-carbon hydrogen production technologies and reduce costs.

Pranav Chandrasekhar, Project Manager at the Canadian Hydrogen and Fuel Cell Association, stated that Canada has a long history of hydrogen energy development and is eager to exchange relevant technologies with Chinese partners. Currently, British Columbia has established numerous hydrogen import centers and has a transportation network, which has opened up channels for exports to Asia. Canada holds technological advantages in electrolyzers, hydrogen energy, and fuel cells, and hopes that China and Canada will further deepen cooperation in existing joint hydrogen energy research projects.

Tobias Brunner mentioned that there are abundant cooperation opportunities between China and Germany. For instance, in areas such as electrolyzer-based green hydrogen production and liquefaction, distribution, and refueling technologies, if standards can be better unified, there will be cooperation opportunities for hydrogen energy applications in more fields.

Li Yiran noted that Germany needs to import a large portion of its hydrogen. It is estimated that by 2030, the total demand for hydrogen and its derivatives will be 95 to 130 terawatt-hours, of which 50% to 70% of hydrogen demand will come from imports. By 2030, hydrogen energy will be applied in industries, energy, transportation, and also in the power supply sector. She believes that Chinese and German enterprises in the hydrogen energy field have numerous cooperation opportunities.

Siegfried Hugemann, Initiator and Secretary-General of the African Hydrogen Partnership, stated that many African countries cannot meet market demand with their current electricity generation capacity and require more energy supply. In Africa, hydrogen energy is a better option. Africa focuses on the application of hydrogen energy in diverse industries, including aviation, shipping, and trucking, and needs relevant machinery and equipment. In this regard, China will become a crucial supplier of such products.