Only 7% of announced global green hydrogen capacity was finished on schedule in 2023, indicating that progress in the sector is very slow. In California, where the hydrogen fueling network shrank from 65 stations in 2023 to 57 today, only about two-thirds of those are operational. Hydrogen runs four times more expensive per mile than gasoline, and the state’s hydrogen car registrations fell for the first time in 2025 to roughly 14,000:
The hydrogen production sector, once seen as a clean energy solution, now faces challenges. The vast majority of industrial hydrogen is still gray hydrogen, produced using fossil fuels, while green hydrogen, produced using renewable energy sources, is better for the environment:
A study published in 2023 found that less than a tenth of planned hydrogen projects were actually carried out. However, hydrogen still holds potential to reduce greenhouse gas emissions in industry, long-duration energy storage, and long-haul transport.
