Westwood Global Energy Group (Westwood), a specialist energy market research and consultancy firm, has released new data indicating that Europe is unlikely to meet its 2030 hydrogen production targets.
The research reveals that only 17% of the EU's planned hydrogen project pipeline is expected to materialise without intervention in policy frameworks, funding mechanisms, and demand-side mandates.
The analysis highlights significant challenges within the European hydrogen sector, including regulatory delays, elevated costs, and weak demand.
By the end of 2024, 23 hydrogen projects totaling 29.2 GW (LHV) had been stalled or cancelled. Similarly, the UK market faces potential delivery of just 1% to 24% of its pipeline by 2030, underscoring substantial policy and funding shortfalls.
Jun Sasamura, Hydrogen Manager at Westwood, commented: "The gap between ambition and reality in Europe's hydrogen sector is widening. While targets are necessary, they will remain out of reach unless the policy landscape evolves. For the UK in particular, without sharper coordination and a clearer demand-side focused approach, there is a potential risk of falling behind."
Despite these challenges, the research outlines a best-case scenario where 70% of the current EU pipeline could materialise if planned frameworks are effectively developed and implemented, potentially enabling the EU to reach its 2030 production targets.
David Linden, Head of Energy Transition at Westwood, added: "While it is easy to focus on the challenges, we should acknowledge that delivering 17% (12 GW LHV) of the EU's pipeline still represents substantial progress. European governments are increasingly adopting a more realistic perspective on hydrogen's role in the economy. Governments must now act decisively on the three critical areas that we have identified to ensure continued progress."
Westwood Global Energy Group is a London-based energy market research and consultancy firm with offices in Aberdeen, Houston, and Singapore.