Green Hydrogen Dream Falters: Just 7% of Projects On Schedule as Demand Edges Up 2%

Green hydrogen is created when renewable electricity powers an electrolyser that splits water into hydrogen and oxygen. The resulting gas burns cleanly, releasing only water vapour and warm air. After the pandemic, governments and energy firms promoted it as a way to decarbonise industries that cannot easily switch to renewable power, such as steelmaking and chemical synthesis. Despite early optimism, many developers have slowed or paused projects as they reassess climate strategies and governments miss decarbonisation milestones.

The International Energy Agency reported that global hydrogen demand hit 100 million tonnes in 2024, a 2% increase over 2023, with growth coming from refineries, chemical plants, and iron‑and‑steel mills. A 2025 review of 190 green hydrogen projects tracked over three years found that just 7% met their original completion dates, underscoring widespread delays. Researchers from China Agricultural University and Nanyang Technological University showed that sugars extracted from wheat stalks and other crop residues can replace oxygen in the electrolysis cycle, lowering the production cost to $1.54 per kilogram versus the typical $4‑$6 range for conventional green hydrogen.

The modest 2% demand rise indicates hydrogen remains a small slice of the overall energy mix, while the low on‑schedule rate reveals that turning announcements into operating plants is still difficult. If the sugar‑based process can be scaled, it could cut the cost gap with grey hydrogen, which is produced from natural gas at roughly $1‑$2 per kilogram. However, the technology must first demonstrate reliable, large‑scale operation and secure supply chains for agricultural waste before it can affect market dynamics. Stakeholders will need to monitor both policy support for electrolyser deployment and the progress of pilot plants using the new feedstock.