Driving forces in the hydrogen industry
Hydrogen game plan defined in 2025
In terms of regulations, 2025 was something of a lost year, with progress hampered by political decisions in the US and Europe. Nonetheless, in many other ways 2025 was a breakthrough year when it comes to regulations in the global hydrogen sector. Decisions were made about how to implement agreed-upon incentive programs, and national strategies around hydrogen investments were strengthened.
Together, these decisions mean that the market is moving from a vision to a regulated, investable reality – and 2025 was the year when much of the game plan was defined.
The US moves from green to blue
During the Biden administration, several decisions were made in the US with a clear focus on stimulating sustainable economic growth. In 2021, the Bipartisan Infrastructure Law was enacted, marking a USD 1,200 billion investment in transportation, energy and climate. The following year, the Inflation Reduction Act, the world’s most comprehensive support system for clean hydrogen, was also enacted.
Under the Trump administration, hydrogen policy has shifted focus from green to blue hydrogen. Green hydrogen is generated through electrolysis, where the energy used in the process is renewable, while blue hydrogen is extracted from natural gas. Any carbon released is captured and stored. This shift is the result of a political decision to support domestic fossil energy and heavy industry.
Rules for clean hydrogen production were finalized during the year, regulating the conditions for how the financial support introduced under the Inflation Reduction Act is to be distributed. One of the goals of these rules is to reassure investors and enable large-scale hydrogen production.
Europe adopts binding targets
In the early 2020s, the EU made several decisions that established the path forward for the hydrogen economy. The EU Hydrogen Strategy was adopted in 2020, establishing an investment agenda with 20 initiatives to stimulate demand for hydrogen, scale up production and create a support framework. As of early 2026, there were more than 750 hydrogen projects in the strategy pipeline. The hydrogen sector is also being impacted by Fit for 55 and REPowerEU, including the targets set in the latter project for the import and European production of hydrogen.
Requirements and definitions for low-carbon hydrogen were established in 2025. Binding targets for the use of renewable hydrogen in industry and transportation were also adopted, and the European Commission highlighted prioritizing hydrogen for a more complete EU hydrogen infrastructure.
Comprehensive expansion in Asia
Energy use in Asia is changing at a rapid rate. After building the energy system on coal and natural gas, several countries have now adopted strategies to develop hydrogen as a more sustainable alternative. Focus on energy security and independence has led to a comprehensive expansion of electrolysis capacity.
China is a world leader in electrolysis and has more than half of the world’s electrolysis capacity, with a total capacity of 2 gigawatts in 2024. Japan and Korea tightened their national hydrogen strategies in 2025 and have the ambition to transition from fossil-based hydrogen to green hydrogen through electrolysis. Both countries have plans for gigawatt-scale electrolyzer capacity.