Capital spending on low-emissions hydrogen projects reached nearly USD 7 billion in 2025, nearly double the 2024 level and equal to 0.7% of global investment in energy supply. Investment in electrolysis overtook investment in carbon capture, utilisation and storage (CCUS)-based hydrogen, thanks to a stronger pipeline, higher capital intensity and faster project progress, and could account for around 70% of nearly USD 10 billion in investment in 2026.

China and Europe lead committed electrolysis projects, with China accounting for more than 60% of capacity by 2026 and 25% of estimated investment. Europe represents less than 20% of capacity but 45% of investment, reflecting higher capital expenditure (CAPEX) per unit of capacity. The United States leads CCUS-based hydrogen projects. Over 85% of investment targets existing hydrogen uses in industry and refineries, or hydrogen-based fuels.

International public finance for low-emissions hydrogen in emerging economies had grown from a negligible level in 2022 to around USD 3.3 billion in cumulative commitments to governments by the first quarter (Q1) of 2026. This supports technical assistance, broader policy frameworks and, recently, enabling infrastructure. As projects advance, project-level international public finance is gaining prominence, reaching around USD 650 million cumulatively by Q1 2026, mainly for project preparation and reducing financing costs.

Venture capital (VC) for hydrogen continued to fall in 2025, both in absolute terms and as a share of energy VC, down from a 13% peak in 2023 to 4% in 2025. Aviation attracted the largest share of hydrogen VC, with almost 25%.

Hydrogen company valuations are being driven to new highs by one firm, while returns show modest signs of stabilisation and recovery. Bloom Energy stands out, adding almost USD 80 billion in market capitalisation in the past year, as surging electricity demand from AI data centres and long gas turbine backlogs boost prospects for its fuel cells, albeit initially running on natural gas.

Multiple hydrogen technologies have advanced towards commercial deployment since 2020, but maturity remains uneven. High-capture CCUS-based hydrogen production has yet to be demonstrated, while hydrogen use in industry and synthetic hydrocarbons is only now moving to first-of-a-kind projects, more slowly than more modular end-use sectors, such as transport.