Just 1.1% of Europe’s Hydrogen Production in 2024 Was Low-Carbon: Hydrogen Europe Calls for Urgent Scale-Up

Brussels, October 2025 – Hydrogen Europe has sounded the alarm over the pace of the continent’s energy transition, revealing that only 1.1% of hydrogen produced in Europe in 2024 came from low-carbon sources. The overwhelming majority – almost 99% – was generated from unabated fossil fuels, commonly known as “grey hydrogen.”

Speaking on behalf of the industry, Sopna Sury, Chair of Hydrogen Europe, stressed that the figures underscore the urgent need for a rapid and coordinated scale-up of clean hydrogen technologies.

“Europe cannot afford to stand still while the rest of the world accelerates investment in clean energy. With only 1.1% of hydrogen production qualifying as low-carbon in 2024, we are far from the trajectory needed to meet Europe’s own climate goals. Hydrogen is critical for decarbonising hard-to-abate sectors such as steel, chemicals, aviation and shipping – but it requires bold action now,” said Sury.

A heavy reliance on fossil-based hydrogen

According to the association’s latest Clean Hydrogen Monitor, Europe continues to rely overwhelmingly on grey hydrogen produced from natural gas without carbon capture. This entrenched reliance not only undermines decarbonisation efforts but also exposes the continent to geopolitical and price volatility in energy markets.

Hydrogen Europe’s analysis shows that despite policy ambitions under REPowerEU and the EU Hydrogen Strategy, deployment of clean hydrogen projects remains painfully slow. Less than 20% of announced capacity is expected to materialise by 2030 without stronger regulatory, financial, and infrastructure support.

The case for massive scale-up

Sury emphasised that both renewable hydrogen (from electrolysis powered by green electricity) and low-carbon hydrogen (produced with carbon capture and storage, CCS) have a role to play.

“We must be pragmatic and inclusive in our approach. Europe needs both renewable and low-carbon hydrogen to scale in the short term if we are to achieve the EU’s 20 million tonnes clean hydrogen target by 2030. That means accelerating electrolysers, de-risking CCS investments, and ensuring off-takers have clear incentives to switch,” she noted.

Barriers to progress

The report highlights several structural barriers holding back deployment:

• High costs of clean hydrogen compared to fossil-based alternatives.

• Slow permitting and grid integration for renewable projects.

• Lack of infrastructure for hydrogen transport and storage.

• Regulatory uncertainty, particularly around definitions of “renewable” vs. “low-carbon” hydrogen under EU rules.

• Weak demand-side signals, as industries hesitate to commit without clear price stability or support schemes.

Call to policymakers

Hydrogen Europe is urging the European Commission and member states to:

1. Scale up funding instruments, including the EU Hydrogen Bank, to de-risk projects.

2. Clarify and harmonise regulation, especially certification schemes for renewable and low-carbon hydrogen.

3. Invest in infrastructure, including pipelines, ports, and storage hubs.

4. Create demand-side pull, through contracts-for-difference, quotas in industry and transport, and public procurement.

“The challenge is immense, but so is the opportunity,” Sury concluded. “Hydrogen is not just an energy vector; it is a bridge to a truly decarbonised European economy. We must act decisively in the next five years to ensure Europe remains a global leader in clean energy.”