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Publication
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.
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