Clean Hydrogen Project Cancellations Lead to Industry Challenges in 2025
In 2025, the clean hydrogen industry faced significant setbacks, with over 4.9 million tonnes of production capacity canceled. The cancellations, including major projects by BP, stem from high costs, lack of buyer interest, and regulatory uncertainties. The analysis indicates only 7% of hydrogen projects were completed on schedule, dropping to 4% in 2024. China dominates construction with 25 projects initiated, while the US sees a mix of cancellations and ongoing developments. Experts emphasize hydrogen's role in hard-to-abate sectors but predict a decline in demand, particularly in Europe.
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The clean hydrogen sector in 2025 saw the cancellation of projects totaling over 4.9 million tonnes of production capacity. Major cancellations included BP’s Duqm Green Hydrogen Project in Oman and the H2Teesside project in the UK, attributed to high costs and insufficient demand.
Analysts noted that only 7% of hydrogen projects finished on time in 2023, decreasing to 4% in 2024. China emerged as a leader with 25 projects initiated, while the US experienced a mix of cancellations and ongoing projects. Experts highlighted hydrogen's necessity in hard-to-abate sectors, yet predicted a decline in its overall demand, especially in Europe.
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