Europe ramps up hydrogen race with up to 35 GW of electrolyser capacity by 2030

The region accounts for 40% of Europe’s hydrogen demand and aims to lead global production, imports, and infrastructure for low-emissions hydrogen.

Europe is emerging as the epicentre of low-emissions hydrogen development across the continent. According to the Northwest European Hydrogen Monitor 2025 by the International Energy Agency (IEA), countries including Germany, France, the Netherlands, and the United Kingdom are spearheading efforts to install between 30 and 35 gigawatts (GW) of electrolyser capacity by 2030.

The region — which accounts for around 40% of Europe’s total hydrogen demand — benefits from key strategic advantages: vast renewable energy potential in the North Sea, repurposable gas infrastructure, and underground carbon and hydrogen storage capacity. However, the report warns that over 90% of announced projects remain in the concept or feasibility study stage.

A major hurdle remains closing the cost gap with hydrogen produced from unabated natural gas. According to the IEA, current renewable hydrogen prices are more than double the levelised cost of fossil-based hydrogen. A carbon price of USD 140 per tonne of CO₂ equivalent would be needed to level the playing field by the end of the decade.

The report also highlights the urgent need for stronger demand-side policies. While the EU’s updated Gas Decarbonisation Package and RED III Directive aim to set binding targets, their national implementation is lagging in several Member States.

On infrastructure, Northwest Europe could develop a hydrogen pipeline network nearing 13,000 kilometres by the early 2030s, though only 6% of projects have reached a final investment decision (FID). Underground hydrogen storage could reach 16 TWh by the end of the decade, yet just 3% of this potential capacity is under construction or committed.

International trade is another key pillar. Northwest European countries could absorb over 60% of globally earmarked hydrogen import volumes by 2030, based on project announcements. Mechanisms such as Germany’s H2Global and the European Hydrogen Bank aim to bridge the gap between production costs and market prices.

Despite the challenges, the IEA concludes that Northwest Europe’s success hinges on coordinated regional planning, robust policy support, and a clear regulatory framework to establish itself as a global leader in the emerging hydrogen economy.