The hydrogen market is moving from hype to execution: We see fewer project announcements than a few years ago, but this is not necessarily a negative sign. The focus has shifted from announcing projects to actually delivering them. Strong regulatory frameworks such as RED III and CBAM are also helping move the market from ambition to implementation by creating real demand signals.
The strongest projects have continued to move forward: Many of the projects that had solid fundamentals from the beginning are now reaching important milestones. At Hy24, we have already seen several projects achieve FID this year, with more expected to follow. Early demand is increasingly anchored by sectors such as refining, green steel, and low-carbon transport fuels.
Lessons from successful projects: Long-term offtake agreements, strong industrial partners, realistic project design, and early stakeholder engagement remain critical success factors. (With real examples of Hy24 Projects that demonstrated bankability).
Challenges remain along the way: Securing long-term offtakers, financing, regulatory uncertainty, increased capex compared to initial estimates, power procurement, and permitting continue to affect project timelines. Higher interest rates and delays in policy implementation have added further pressure on capital-intensive projects.
Beyond decarbonisation, energy security and industrial competitiveness have become additional drivers, reinforcing the long-term case for hydrogen.