Hydrogen projects are stopped in Europe

More than 20% of hydrogen projects in Europe are stopped or cancelled. The main reasons are rising construction and logistics costs, difficulties in financing and delays in the adoption of regulations. The analysis was carried out using data from consulting companies and industry reports.

Hydrogen energy market status

The total capacity of planned hydrogen projects in Europe is a certain volume, but a significant part of them do not move beyond the design stage. Of the total number of registered initiatives, 30% are in the development stage, and another 50% continue to be implemented according to schedule. At the same time, more than 20% of projects have been completely stopped.

Financial and regulatory barriers

One of the key issues hindering the implementation of projects is the increase in capital costs. Infrastructure projects related to the production, transportation and storage of hydrogen require significant investments, which have become less affordable amid changes in the economic situation.

In addition, investors are faced with legislative uncertainty. Some EU countries are not implementing the measures needed to support hydrogen energy in a timely manner. This leads to delays in approving subsidies and developing rules for certifying “green” hydrogen.

Geographical distribution

The projects in countries where intensive development of hydrogen infrastructure was previously planned were the most affected. In some regions, the volume of frozen initiatives reaches 40% of the total number of announced projects. However, in other countries, such as Germany, projects continue to develop thanks to public investment and cooperation with the private sector.

Forecasts and impact on the industry

The halt in projects could slow down the achievement of climate goals set by EU countries, such as reducing carbon emissions and switching to clean energy. According to analysts, if the current problems persist, the share of hydrogen in the overall energy mix will be lower than expected by 2030.
However, in the long term, hydrogen remains a strategic direction for energy development, and experts predict that the situation will improve as economic conditions and the regulatory framework stabilize.

Conclusions

The freezing or cancellation of a significant part of hydrogen projects in Europe demonstrates the existing difficulties in the development of this industry. The key barriers remain high costs, insufficient legislative regulation and difficulties in attracting investment. The solution to these problems will be decisive for the further development of hydrogen energy in the region.