On July 28, 2026, the International Energy Agency (IEA) released its Global Hydrogen Annual Progress Report, stating that as of the first half of 2026, the cumulative installed capacity of green hydrogen projects under construction and planned worldwide exceeded 200 GW, more than double the figure for the same period in 2025. The report believes that with the scaling up of electrolyzer manufacturing and the continued decline in renewable energy costs, green hydrogen is about to enter a commercialization boom.
Green hydrogen projects flourish worldwide
The report shows that currently, there are over 800 hydrogen projects in operation, under construction, or in planning globally, with the share of green hydrogen projects rising from 45% in 2025 to 62%. Europe remains the largest market, accounting for 38% of global projects, but Asia and the Middle East are growing at an astonishing pace.
- China: Deploying multiple hundred-megawatt-scale green hydrogen demonstration projects in Inner Mongolia, Xinjiang, etc., with new electrolyzer capacity reaching 8 GW in the first half of 2026.
- Saudi Arabia: The Red Sea New City project has launched the world's largest green hydrogen production base, expected to be operational by 2028, producing 1.2 million tonnes of green hydrogen annually.
- Australia: The Green Hydrogen Valley in Western Australia received A$1.5 billion in federal subsidies, aiming to achieve green hydrogen exports by 2030.
Cost breakthrough threshold
The report specifically notes that the levelized cost of green hydrogen (LCOH) has fallen from $6-8 per kg in 2020 to $2.5-3.5 in 2026, and even below $2 per kg in some sun-rich regions (e.g., Chile, UAE). The IEA predicts that by 2030, the global average cost of green hydrogen could drop to $1.5 per kg, matching the cost of gray hydrogen (from fossil fuels).
Three key drivers
- Electrolyzer scaling: China's alkaline electrolyzer capacity accounts for 70% of the global total, with prices down 60% from 2020.
- Falling renewable electricity prices: Levelized costs of solar PV and onshore wind have fallen to $0.02/kWh and $0.03/kWh respectively.
- Carbon taxes and policy support: The EU Carbon Border Adjustment Mechanism (CBAM) began imposing carbon differential tariffs on imported hydrogen products in 2026, driving high-carbon hydrogen out of the market.
Application scenarios expand
Green hydrogen is extending from traditional industries like chemicals and steelmaking to transportation and power generation. In June, Kansai Electric Power in Japan completed the world's first commercial trial of a gas turbine with 30% hydrogen blending; German company RWE will build the first refueling station for 10,000-scaled hydrogen fuel cell heavy trucks at Hamburg Port. Additionally, orders for liquid hydrogen carriers have surged, with shipbuilders in China, Japan, and South Korea securing contracts for 22 large liquid hydrogen carriers.
Challenges remain
Despite the bright prospects, challenges such as insufficient infrastructure, incomplete standards, and storage/transport bottlenecks persist. IEA Executive Director Fatih Birol said, “Countries need to coordinate and develop unified hydrogen standards and certification systems, and increase investment in pipeline retrofitting and hydrogen storage facilities to unlock the true potential of green hydrogen.”
In China, the National Development and Reform Commission (NDRC) recently issued the Medium- and Long-Term Plan for Hydrogen Energy Development (2026-2035), proposing to achieve an annual green hydrogen production capacity of 1 million tonnes by 2030 and build a nationwide hydrogen pipeline network. Industry analysts believe that with dual drivers of policy and commerce, the hydrogen era is accelerating.
