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China Leads Global Clean Hydrogen Market as Investment Surpasses $130 Billion, Hydrogen Council Says

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Clean hydrogen investment has surpassed $130 billion as energy security and industrial resilience drive renewed global momentum for the fuel, the Hydrogen Council said in a report released Thursday.

The council's Global Hydrogen Compass 2026 puts committed clean hydrogen capacity at 6.9 million metric tons per annum across over 570 projects, with 90% under construction or operating.

Co-authored with McKinsey & Company and drawing on views from about 70 global CEOs, the report highlights industry progress amid shifting strategic priorities.

Global operational capacity nearly doubled over the past year, and the council expects capacity to double again next year as projects under construction come online.

The report said shifting geopolitical priorities have strengthened hydrogen's role in energy security and economic resilience, alongside industrial decarbonization and electrification.

The report ranked China as the leading market, with over half of committed renewable hydrogen capacity and 90% of new global operating capacity added since 2025.

Europe ranks second, leading in project count and recording 35% investment growth since 2025, while the US accounts for about 75% of committed low-carbon hydrogen and ammonia capacity.

Existing policies could unlock 11 Mtpa of clean hydrogen demand by 2030, but enacted and enforced measures currently support about 6 Mtpa, the report said.

Governments need to act on existing commitments to unlock the remaining 5 Mtpa of potential demand, the Hydrogen Council said.

The council called for enabling incentives, mandates and robust carbon pricing to create demand signals and support further clean hydrogen deployment.

Industry must also reduce costs and develop infrastructure to meet demand efficiently, the Hydrogen Council said.

"Hydrogen is not only a decarbonization solution; it is also the indispensable partner to renewable electricity," said Francois Jackow, CEO of Air Liquide and co-chair of the Hydrogen Council.

"Through their synergies, hydrogen strengthens the resilience and improves the efficiency and affordability of the overall energy system," Jackow added.

Hyundai Motor Group Vice Chair and Hydrogen Council Co-Chair Jaehoon Chang said the debate has shifted from whether hydrogen can deliver to how quickly countries choose to build.

"While the pace varies by market, the principle is the same: identify where hydrogen creates the most value, build the ecosystem around it and prove it works," Chang said.

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