Green hydrogen projects face cancellations
Green hydrogen developers are cancelling projects and trimming investments globally, which threatens emissions targets by prolonging reliance on fossil fuels. The sector’s initial ambitions have been deemed unrealistic due to high costs and lack of demand, particularly in hard-to-electrify industries like steelmaking and transportation.
Infrastructure challenges impede hydrogen market
Hydrogen’s storage and transportation difficulties, due to high-pressure requirements and leakage risks, complicate infrastructure development. Delays in building necessary infrastructure, such as Spain’s planned hydrogen network, further hinder the market’s growth and the transition to green hydrogen.
High costs hinder green hydrogen adoption
Green hydrogen remains significantly more expensive than fossil fuel alternatives, making it uncompetitive. Production costs are at least three times higher than natural gas, and twice as expensive as grey hydrogen, which is already used in industries like oil refining. This cost barrier has led to reduced demand and project delays.
Summary of Reuters Article: Green Hydrogen Retreat Threatens Emissions Goals (Published July 23, 2025)
Global efforts to scale up green hydrogen—a key clean energy source—are faltering, putting climate targets at risk. Here’s the core of what Reuters reports:
Key Points
- Slow Adoption: Green hydrogen projects are being delayed or canceled worldwide due to high costs, infrastructure bottlenecks, and waning government support.
- Investment Shortfall: Funding is shifting toward “blue hydrogen” and fossil-based projects, which are less sustainable but more immediately feasible.
- Emission Concerns: Without a robust green hydrogen rollout, countries may struggle to meet mid-decade emissions targets, especially in hard-to-decarbonize sectors like steel and aviation.
- Policy Gaps: Experts urge governments to strengthen incentives, streamline permitting, and improve grid access to revive interest in green hydrogen.
What’s at Stake?
The retreat from green hydrogen could derail net-zero goals and diminish progress made under climate agreements such as the Paris Accord.
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