Hydrogen and Renewable Fuels Q3/2024 Market Review

As we pass the third quarter of the year, the hydrogen sector continues to show steady growth and positive momentum. From project launches to manufacturing expansion, and from strategic investments to international partnerships, the quarter has been filled with activity that keeps pushing the sector forward.

Although the number of hydrogen projects reaching Final Investment Decision (FID) slipped slightly from 41 in Q2 to 37 in Q3, the actual production capacity tells a promising story. Capacity reached 1 million tons, up from 0.54 million tons in the previous quarter. However, a large part of this growth still comes from grey hydrogen, making up nearly half of the total capacity added.

Electrolyzer Original Equipment Manufacturers (OEMs) kept expanding their production capabilities, with notable developments such as Cummins starting production at its 500 MW PEM factory in Spain and Ohmium launching a 2 GW factory in India. Meanwhile, H-Tec Systems rebranded as Quest One and opened its Stack Gigafactory in Hamburg.

Geologic hydrogen saw increased interest. Companies like Longhorn Exploration and Max Power Mining reported advances in exploration, and Hy-Terra received new investments from Fortescue. These efforts reflect growing confidence in geologic hydrogen as part of the broader hydrogen supply mix.

The ammonia and synfuels sectors also saw significant funding and progress. Twelve, a leader in CO2-to-jet fuel technology, secured $645 million for expanding production. Other synfuel startups attracted venture capital, highlighting the increasing focus on alternative fuels as a critical component of the energy transition.

The European green hydrogen sector gained traction, bolstered by IPCEI grants. Most of the electrolyzer capacity approved this quarter, totaling 1.6 GW, came from Europe. Notably, blue hydrogen projects faced difficulties, with Equinor scrapping its plans for a blue hydrogen facility in Europe.

Venture Capital and grant activity remained robust. The Delphi ATLAS Algorithm tracked 121 transactions in the low-carbon hydrogen sector this quarter, amounting to $4.48 billion. These funds are set to fuel further growth in green hydrogen and derivatives projects worldwide.

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