The majority of the world's planned hydrogen projects and the largest share of associated investments in this decade are expected to be in Europe, the Hydrogen Council business group said in its first global project portfolio estimate with consultancy McKinsey.
The European Union has made hydrogen a key element in its goal of reducing greenhouse gas emissions by 2050, and plans to install 40 GW electrolyzers this decade - equipment to produce hydrogen without emissions using water and renewable energy.
Most of the 126 European projects will be launched this decade, with a focus on renewable hydrogen or fossil fuel hydrogen, using technologies to capture emerging emissions.
The report says that if all planned projects are implemented, this decade global investment will exceed $ 300 billion, accounting for about 1.4% of total investment in the energy sector, while Europe will account for about 45% of the total amount.
Leading European companies, including Royal Dutch Shell Plc, BMW, Microsoft Corp and Sinopec, plan to increase their hydrogen investments sixfold by 2025 from 2019 levels.
McKinsey highlighted the enormous challenges ahead to increase hydrogen production, build infrastructure for transportation and storage, and massively expand renewable energy capacity for fuel production.
If that happens, renewable hydrogen could reach cost parity with fossil fuel options by 2028 in regions with an abundance of cheap renewable energy, such as the Middle East.