Only 17% of the EU’s hydrogen project pipeline is expected to materialise by the end of the decade, according to Westwood Global Energy Group.
It found the European pipeline to be under strain, facing regulatory delays, elevated costs and weak demand. All of these together are heavily impacting progress, as evidenced by the fact that 23 hydrogen projects, worth 29.2GW, have already stalled or been cancelled as of the end of 2024. It is a similar picture for the UK, with a delivery range of 1%, at worst, and 24%, at best, of its pipeline by 2030 down to policy, funding and mandate shortfalls.
However, there is a scenario where 70% of the current EU pipeline could materialise but this relies on planned frameworks being effectively developed and implemented. This would see the EU hit its 2030 production targets, showcasing just how important progress is around policy frameworks, funding mechanisms and demand-side mandates.
Jun Sasamura, Hydrogen Manager at Westwood, explained that the gap between ambition and reality in Europe’s hydrogen sector is widening, calling for the policy landscape evolve to get closer to targets. Sasamura continued: “For the UK in particular, without sharper coordination and a clearer demand-side focused approach, there is a potential risk of falling behind.”
