The International Energy Agency’s 2026 report reveals slow progress in the adoption of low-emissions hydrogen, hampered by policy gaps and regional uncertainties, with demand still largely driven by traditional industrial uses.
Global hydrogen demand continued to rise in 2025, but the pace of change remains far slower than many industry advocates had hoped, according to the International Energy Agency’s Global Hydrogen Review 2026.
The IEA said worldwide hydrogen consumption increased by almost 3% last year to more than 100 million metric tonnes, with most of that growth still concentrated in long-established industrial applications and refining. By contrast, demand for low-emissions hydrogen rose by 20% to close to 1 million tonnes, yet still accounted for less than 1% of total output.
That gap matters because low-emissions hydrogen has long been presented as a key input for decarbonising hard-to-abate sectors including chemicals, refining, steel and fertiliser production. But the agency said sluggish and uneven policy delivery is still blocking wider uptake. In its view, the central problem is not a lack of interest or announcements, but the difficulty of turning strategy into bankable projects and sustained demand.
The near-term outlook has also become more complicated because of conflict in the Middle East, which the IEA said has added uncertainty to hydrogen applications linked to fertiliser production and trade. That is particularly relevant for ammonia and related products, where supply chains are tightly tied to regional energy flows and shipping routes.
Even so, the project pipeline continues to develop. The IEA said new offtake agreements for low-emissions hydrogen totalled 1.7 million tonnes a year in 2025, unchanged from 2024 but below the 2.5 million tonnes a year recorded in 2023. Around one-fifth of those agreements were firm commitments, while the remainder were preliminary arrangements. For the first time, the agency said, trade-linked deals outnumbered agreements focused on domestic use.
Refining and industry remain the main destinations for low-emissions hydrogen. Based on projects that had reached final investment decision, the IEA expects around 2.5 million tonnes to be produced and used in refineries and industrial plants by 2030. Yet momentum weakened in 2025, with projects reaching final investment decision falling below 0.8 million tonnes a year after two consecutive years at about 1 million tonnes a year.
Investment has not disappeared, however. The IEA said capital spending on low-emissions hydrogen projects reached nearly $7 billion in 2025, almost double the previous year and equivalent to 0.7% of global energy supply investment. It also said investment in electrolysis overtook spending on hydrogen made with carbon capture, while China and Europe led the way in committed electrolysis capacity.
Installed electrolysis capacity more than doubled in 2025 to above 4 GW, with more than 2.5 GW under construction and expected to enter operation in 2026, mostly in Europe and China. The agency also said international public finance for low-emissions hydrogen in emerging economies had climbed to about $3.3 billion by the first quarter of 2026.
Policy support remains extensive on paper. The IEA said public funding for hydrogen initiatives has reached $41 billion, with nearly two-thirds tied to legislation already in force and almost a quarter already disbursed to projects, helping trigger final investment decisions. The number of national hydrogen strategies has held at 66, though recent revisions have increasingly focused on implementation or on lowering targets.
The broader conclusion from the report is that low-emissions hydrogen is moving forward, but not yet fast enough to reshape energy markets at scale. The IEA said several major projects are still expected to start up before 2030, yet the sector will need stronger policy execution, better cost support and more reliable offtake to close the gap with incumbent fossil-based hydrogen.
- https://rbnenergy.com/daily-posts/analyst-insight/growth-low-carbon-hydrogen-slowed-uncertain-policy-implementation – Please view link – unable to able to access data
- https://www.iea.org/reports/global-hydrogen-review-2026/demand – The International Energy Agency’s Global Hydrogen Review 2026 reports that global hydrogen demand grew almost 3% in 2025, surpassing 100 million metric tons, primarily driven by traditional industrial uses and refining. The report also highlights a 20% increase in demand for low-emissions hydrogen, reaching close to 1 million metric tons, though it still accounts for less than 1% of total production. The IEA notes that sluggish and uncertain policy implementation is hindering faster adoption of low-emissions hydrogen, and the Middle East conflict has introduced uncertainties in the near-term outlook for hydrogen applications, particularly in fertilizer production and trade.
- https://www.iea.org/reports/global-hydrogen-review-2026/investment-and-innovation – The IEA’s Global Hydrogen Review 2026 indicates that capital spending on low-emissions hydrogen projects reached nearly USD 7 billion in 2025, nearly doubling the 2024 level and accounting for 0.7% of global energy supply investment. Investment in electrolysis overtook that in carbon capture, utilisation, and storage (CCUS)-based hydrogen, with China and Europe leading in committed electrolysis projects. The report also notes that international public finance for low-emissions hydrogen in emerging economies grew to around USD 3.3 billion by the first quarter of 2026, supporting technical assistance, policy frameworks, and enabling infrastructure.
- https://www.iea.org/reports/global-hydrogen-review-2026/policy – The IEA’s Global Hydrogen Review 2026 highlights that public funding for hydrogen initiatives has reached USD 41 billion, with nearly two-thirds linked to legislation in force and almost 25% already disbursed to projects, triggering final investment decisions. The number of national hydrogen strategies has stabilised at 66 globally, with recent updates focusing on implementing strategy actions or revising targets downwards. The report underscores the need for effective policy implementation to address barriers to low-emissions hydrogen adoption and to meet long-term deployment targets.
- https://www.iea.org/reports/global-hydrogen-review-2026/production – The IEA’s Global Hydrogen Review 2026 reports that global hydrogen production remains dominated by unabated fossil fuels. Low-emissions hydrogen production reached almost 1 million metric tons in 2025 and is expected to register record growth in 2026, accounting for more than 1% of global production, strongly concentrated in China, Europe, and North America. Installed electrolysis capacity doubled in 2025 to surpass 4 GW, with more than 2.5 GW under construction, targeting operation in 2026, primarily in Europe and China.
- https://www.iea.org/reports/global-hydrogen-review-2026/executive-summary – The IEA’s Global Hydrogen Review 2026 executive summary states that while several large low-emissions hydrogen projects are expected to come online before 2030, it will take time to build the scale needed to make a significant contribution to energy markets. The report emphasises the necessity of policy support to close the cost gap with incumbent technologies and enable short-term uptake. It also highlights that in the near term, low-emissions hydrogen production will remain more costly than fossil-based hydrogen in most parts of the world, apart from China, where renewable hydrogen could become cost-competitive by 2030.
- https://www.iea.org/reports/global-hydrogen-review-2026/demand – The IEA’s Global Hydrogen Review 2026 indicates that refining and industry remain the main sectors for low-emissions hydrogen adoption. Based on projects that have reached a final investment decision, 2.5 million metric tons of low-emissions hydrogen are expected to be produced and consumed in refineries and industrial facilities by 2030. However, investment momentum slowed in 2025, with projects reaching final investment decisions dropping below 0.8 million metric tons per annum after two consecutive years at around 1 million metric tons per annum.
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The draft above was created using the information available at the time the story first
emerged. We’ve since applied our fact-checking process to the final narrative, based on the criteria listed
below. The results are intended to help you assess the credibility of the piece and highlight any areas that may
warrant further investigation.
Freshness check
Score:
8
Notes:
The article references the International Energy Agency’s (IEA) Global Hydrogen Review 2026, published on 18 June 2026. ([iea.org](https://www.iea.org/reports/global-hydrogen-review-2026?utm_source=openai)) The article was published on 26 June 2026, indicating timely reporting. However, the IEA’s report is publicly accessible, so the article may not offer significantly new insights beyond the original report.
Quotes check
Score:
7
Notes:
The article includes direct quotes from the IEA’s Global Hydrogen Review 2026. ([iea.org](https://www.iea.org/reports/global-hydrogen-review-2026?utm_source=openai)) These quotes are directly sourced from the IEA’s report, which is publicly available. The article does not provide additional independent verification of these quotes.
Source reliability
Score:
6
Notes:
The article is published by RBN Energy, a niche energy market analysis firm. While it provides analysis and commentary, it does not originate from a major news organisation. The article relies on the IEA’s report for its primary information, which is a reputable source.
Plausibility check
Score:
8
Notes:
The claims about global hydrogen demand and low-emissions hydrogen production growth align with the IEA’s Global Hydrogen Review 2026. ([iea.org](https://www.iea.org/reports/global-hydrogen-review-2026?utm_source=openai)) The article also mentions the impact of Middle East conflicts on hydrogen applications, which is consistent with the IEA’s findings. ([iea.org](https://www.iea.org/reports/global-hydrogen-review-2026/executive-summary?utm_source=openai))
Overall assessment
Verdict (FAIL, OPEN, PASS): PASS
Confidence (LOW, MEDIUM, HIGH): MEDIUM
Summary:
The article provides a timely summary of the IEA’s Global Hydrogen Review 2026, with claims that align with the IEA’s findings. However, it relies heavily on the IEA’s report without offering independent verification or additional sources. The source, RBN Energy, is a niche publication, which slightly reduces the overall reliability. Given these factors, the content passes with medium confidence.
