howclose.to
Energy · Updated July 2026Momentum · accelerating

How close are we to hydrogen that's cheap and clean?Can clean hydrogen get cheap enough to matter?

or, simply: Can clean hydrogen get cheap enough to matter?or, precisely: How close are we to hydrogen that's cheap and clean?

Electrolysis works; the open question is whether clean hydrogen can reach a few dollars a kilogram and scale to industrial volumes.Clean hydrogen could fuel steel, ships, and fertilizer. First it has to get cheap — and get built at scale.

We are here

Low-emissions share stays tiny — Installed electrolysis passed 4 GW, but low-emissions hydrogen was still about 1 Mt of more than 100 Mt demand. Next up — NEOM targets first ammonia (expected 2027).

01 · Where we stand

Four tests between here and the goal

Each threshold is a falsifiable claim with a named next test. We move the meter only when a result is public.

Ten-gigawatt installed baseBuild the first 10 GWEarly
40%
Next testIEA's next annual inventory can test whether the more than 2.5 GW under construction for 2026 actually enters service.
One-percent low-emissions shareBreak through one percentIn progress
95%
Next testIEA expects low-emissions supply to exceed 1% in 2026; the next measured production estimate can confirm or falsify that forecast.
Two-dollar clean hydrogenHalve today's costEarly
25%
Next testRequire a commercial project's audited electricity cost, utilization, financing, subsidy-free cost and kgCO2e/kg H2 before crediting the threshold.
Bankable offtakeFind real buyersEarly
20%
Next testBy early 2027, test whether projects behind the 22 Mt at-risk 2030 pipeline reach final investment decision.
THRESHOLDS — Thresholds for Clean Hydrogen.
Scale
Unsubsidized clean-hydrogen production cost: linear scaleUnsubsidized clean-hydrogen production cost over time, with measured values, projected values, and a goal at 1 2022 USD/kg H2.0123456Unsubsidized clean-hydrogen production cost · 2022 USD/kg H2Year20212024202520262031GOAL 1 · Hydrogen Shot goalDOE launch baseline, approximately: 5 2022 USD/kg H2 (2021)DOE launch baseline, approximatelyMidpoint of DOE's modeled $5-7/kg PEM range: 6 2022 USD/kg H2 (2024)Midpoint of DOE's modeled $5-7/kg PEM rangeDOE estimate for current clean-hydrogen technologies, approximately: 5 2022 USD/kg H2 (2025)DOE estimate for current clean-hydrogen technologies, approximatelyDOE interim target; not demonstrated sector-wide by mid-2026: 2 2022 USD/kg H2 (2026)DOE interim target; not demonstrated sector-wide by mid-2026Hydrogen Shot target: 1 2022 USD/kg H2 (2031)Hydrogen Shot target~4 2022 USD/kg H2 to goal
NOTE — This is the candidate file's recommended metric, but no audited global historical cost series exists. All observations are DOE modeled estimates, not transaction prices; 2024 is the midpoint of a $5-7/kg range. Cost is meaningful only with a stated lifecycle carbon intensity, electricity price, utilization, financing and subsidy boundary. The $2 and $1 points are targets, not achievements.
02 · How we got here

The record behind the verdict

Major events set large; context events set small but never hidden. Everything below the TODAY rule is a schedule, not a result.

180019121 event0 shown

Finding and Splitting Hydrogen

Finding and Splitting Hydrogen begins with water split electrically. The result established the next question for the field.

191319692 events2 shown

Fertilizer Makes Hydrogen Industrial

Fertilizer Makes Hydrogen Industrial moved the field from synthetic ammonia industrialized to vemork electrolysis opens. The results narrowed the next question without closing it.

1913
Synthetic ammonia industrializedDeployment
BASF's Oppau plant began producing up to 30 tonnes of ammonia per day from synthetic hydrogen and nitrogen.
1929
Vemork electrolysis opensDeployment
Norsk Hydro completed what it describes as the world's largest water-electrolysis plant for fertilizer hydrogen.
200320191 event0 shown

Fuel-Cell Promises Meet Reality

Fuel-Cell Promises Meet Reality begins with hydrogen initiative launched. The result established the next question for the field.

2003
Hydrogen initiative launched
The United States proposed $1.2 billion over five years, expecting technology readiness by 2015.
2020203113 events5 shown

Scaling Under Carbon Rules

Scaling Under Carbon Rules moved the field from europe sets electrolyzer targets to eu targets ten million tonnes. The results narrowed the next question without closing it.

2020
Europe sets electrolyzer targets
The EU targeted 6 GW and 1 Mt renewable hydrogen by 2024, then 40 GW and up to 10 Mt by 2030.
2021
Hydrogen Shot beginsFunding
DOE set an 80% cost-cutting goal: about $5/kg to $1/kg for clean hydrogen within one decade.
2023
NEOM reaches financial closeFunding
The 4 GW NEOM project closed $8.4 billion of financing for a planned 600 tonnes/day of renewable hydrogen.
2023
Electrolysis reaches 1.4 GW
Global installed water-electrolysis capacity reached 1.4 GW while low-emissions hydrogen remained under 1% of 97 Mt output.
2024
FlagshipONE cancelledSetback
Orsted stopped the planned 50,000-tonne/year e-methanol project, citing weak long-term offtake and higher cost.
2025
Project pipeline contractsSetback
The announced 2030 low-emissions pipeline fell to 37 Mt/year as projects were delayed or cancelled.
2026
NEOM reaches 90 percent
NEOM reported 90% overall construction and 95% renewable-power completion; electrolyzer commissioning had begun.
2026
Low-emissions share stays tinyDeploymentWe are here
Installed electrolysis passed 4 GW, but low-emissions hydrogen was still about 1 Mt of more than 100 Mt demand.
2027
NEOM targets first ammoniaDeploymentTarget
NEOM schedules first product in 2027 from a plant designed for 600 tonnes/day of hydrogen and 1.2 Mt/year ammonia.
2030
EU targets ten million tonnesPolicyTarget
The EU's 2020 strategy targets up to 10 Mt/year of domestic renewable hydrogen and at least 40 GW of electrolyzers.
203120311 event0 shown

Events outside the declared eras

Events outside the declared eras begins with hydrogen shot dollar goal. The result established the next question for the field.

2031
Hydrogen Shot dollar goalExperimentTarget
DOE targets unsubsidized clean-hydrogen production cost of $1/kg, down from its approximately $5/kg baseline.
03 · The data behind the verdict

Why the meters read the way they do

The learning curves and comparisons that justify each threshold's percentage. Every series is measured, with the source event linked in the timeline above.

The adoption gap

Growing fast, still a rounding error

$5/kg$1/kglatest modeled cost → goal
Clean hydrogen — the adoption gapDedicated electrolysis capacity is doubling rapidly from a tiny base; the 2025 point is a lower bound because IEA says capacity exceeded 4 GW. Demand keeps growing while remaining overwhelmingly fossil-based; 2024 was almost 100 Mt and 2025 exceeded 100 Mt, so the last two plotted values are rounded bounds. Low-emissions output grew about 20% in 2025 but remained below 1% of the market; the 2025 point is rounded because IEA reports 'almost 1 Mt'. The latest low-emissions share is approximately one in 100 of total hydrogen demand.Electrolysis capacityinstalled GW · linear scaleThe demand wedgeMt H₂/year · same years, same baseline0240501000.33 GW (2020)0.57 GW (2021)0.7 GW (2022)1.4 GW (2023)2 GW (2024)4 GW (2025)95 Mt H2/year (2022)97 Mt H2/year (2023)100 Mt H2/year (2024)100 Mt H2/year (2025)0.8 Mt H2/year (2024)1 Mt H2/year (2025)capacitytotal demandlow-emissions output≈ 1 in 100 of demand1 of 100 Mt H₂/year202020202021202120222022202320232024202420252025

NOTE — The left panel shows the build-out; the right panel shows why a fast-growing low-emissions supply can still be almost invisible against a roughly 100 Mt/year market.

Successive IEA report vintages first expanded and then sharply cut the same 2030 announced pipeline as schedules slipped and projects disappeared.
Successive IEA report vintages first expanded and then sharply cut the same 2030 announced pipeline as schedules slipped and projects disappeared.01020304050Announced low-emissions production for 2030 · Mt H2/yearYear2023202420252026Announced low-emissions production for 2030: 38 Mt H2/year (2023)Announced low-emissions production for 2030: 49 Mt H2/year (2024)Announced low-emissions production for 2030: 37 Mt H2/year (2025)Announced low-emissions production for 2030: 27 Mt H2/year (2026)27 Mt H2/year
NOTE — Successive IEA report vintages first expanded and then sharply cut the same 2030 announced pipeline as schedules slipped and projects disappeared.
Projects operating, under construction or past final investment decision have grown slowly and remain far below announcements.
Projects operating, under construction or past final investment decision have grown slowly and remain far below announcements.00.5011.522.533.5Committed 2030 low-emissions production · Mt H2/yearYear202420252026Committed 2030 low-emissions production: 3.4 Mt H2/year (2024)Committed 2030 low-emissions production: 4.2 Mt H2/year (2025)Committed 2030 low-emissions production: 4.3 Mt H2/year (2026)4.3 Mt H2/year
NOTE — Projects operating, under construction or past final investment decision have grown slowly and remain far below announcements.
  • Low-emissions production, approximately1 Mt H2/year
  • Total demand, more than100 Mt H2/year
COMPARISON — Low-emissions hydrogen supplied only about one part in one hundred of the 2025 market.
  • Committed 2030 capacity4.3 Mt H2/year
  • Announced 2030 pipeline27 Mt H2/year
COMPARISON — Only about 16% of the 2030 announced pipeline had reached operation, construction or final investment decision in 2026.
  • China range midpoint900 USD/kW
  • Outside-China range midpoint2300 USD/kW
COMPARISON — Reported installed electrolyzer costs outside China were roughly 2.6 times Chinese domestic costs at the midpoints of IEA ranges.
  • Modeled PEM midpoint6 2022 USD/kg H2
  • Hydrogen Shot goal1 USD/kg H2
COMPARISON — DOE's modeled current PEM cost midpoint is six times the Hydrogen Shot goal.
04 · What it unlocks

If the remaining tests pass

Downstream capabilities, drawn dashed because they depend on results not yet in.

Clean HydrogenLow-emissions fertilizerReplace fossil-derived feedstock in ammonia without giving up the nitrogen fertilizer used by modern agriculture.Cleaner primary steelSupply reducing gas for direct-reduced iron where electricity alone cannot remove oxygen from ore.Synthetic shipping fuelsProvide the hydrogen input for ammonia, methanol and other energy-dense fuels for hard-to-electrify ocean transport.Clean high-temperature industrial heatHydrogen can supply the fierce kiln heat cement-making needs, replacing fossil fuels.
05 · Sources

Where every number comes from

  1. IEA Global Hydrogen Review 2026 — Executive summaryiea.org
  2. IEA Global Hydrogen Review 2026 — Productioniea.org
  3. IEA Global Hydrogen Review 2025 — Executive summaryiea.org
  4. IEA Global Hydrogen Review 2024 — Hydrogen productioniea.org
  5. DOE Energy Earthshots Initiative Reportenergy.gov
  6. DOE PEM Electrolysis Production Cost Assessmenthydrogen.energy.gov
  7. US National Clean Hydrogen Strategy and Roadmaphydrogen.energy.gov
  8. IRS final clean hydrogen production-credit regulationsirs.gov
  9. European Commission 2020 hydrogen strategyknowledge4policy.ec.europa.eu
  10. NEOM Green Hydrogen Company construction updatenghc.com