Hydrogen Market Formation: An Evaluation Framework

The level of global interest in hydrogen has never been higher. One industry association 
tracked more than 1,000 clean hydrogen project proposals as of January 2023, representing 
38 Mt/yr of new clean supply.2 The EFI Foundation is tracking 440 clean hydrogen projects 
Hydrogen Market Formation: An Evaluation Framework

One estimate finds roughly 0.06 Mt/yr of clean hydrogen production in 
operation today—because of market uncertainty, high technology costs, and a range of 
other issues that will be discussed below.4
Most new clean hydrogen projects integrate supply and demand—often with limited or no 
midstream infrastructure.

In the United States, a focus on clean hydrogen hubs aims to 
address such connectivity issues. In China, the lack of hydrogen pipelines connecting 
hydrogen supply in the west with demand centers in the east is hindering the production of 
renewable-based hydrogen. Repurposing existing infrastructure to foster hydrogen market 
development is one pathway. In the U.K.

Global Hydrogen Insight