By: Utilities Middle east

GlobalData has released its latest Low-Carbon Hydrogen Market Report, Update 2025, outlining a sharp acceleration in global low-carbon hydrogen capacity through the end of the decade.

According to the report, global low-carbon hydrogen production, which remained largely flat for years, reached 0.84 million tonnes per annum (mtpa) in 2024. Total production capacity stood at 1.7mtpa in the same year.

Looking ahead, capacity is forecast to expand significantly, reaching 65.3mtpa under a high-case scenario and 42mtpa under a low-case scenario by 2030. The shift is expected to be led by green hydrogen, particularly across the Americas, with green output projected to account for 88.6% of total production by 2030.

In 2024, blue hydrogen dominated the mix with a 76.3% share, while green hydrogen represented 14.9%. Smaller segments included purple hydrogen at 0.3%, turquoise hydrogen at 0.1% and other categories at 11.3%. By 2030, blue hydrogen’s share is forecast to decline to 11.3%, while purple and turquoise are expected to remain marginal at 0.1% each.

The report highlights strong policy momentum in the Americas. In the US, federal initiatives such as the Energy Policy Act of 2005, the American Recovery and Reinvestment Act of 2009, the Infrastructure Investment and Jobs Act of 2021 and the Inflation Reduction Act of 2022 have provided tax credits, funding and strategic direction for hydrogen development. The US National Clean Hydrogen Strategy and Roadmap further strengthens long-term policy alignment.

Canada’s Hydrogen Strategy, released in 2020, sets out a national vision supported by provincial initiatives in British Columbia, Quebec and Ontario. Federal funding commitments, including allocations in Budget 2023, aim to position Canada as both a domestic producer and export hub.

Mexico remains at an earlier stage but is assessing its potential role in hydrogen production and export, leveraging geographic advantages.

Despite the projected growth trajectory, GlobalData notes that the sector must scale production to reduce costs, replace high-carbon hydrogen in existing applications and expand hydrogen’s use into new industrial segments to unlock its full potential.