Green Hydrogen in 2025: From Pilot Projects to Commercial Scale Reality

Green hydrogen — produced via electrolysis powered by renewable energy — is rapidly moving from pilot-scale demonstrations to commercial-scale projects across the globe. The Green Hydrogen Opportunity Hydrogen is positioned as a critical enabler of deep decarbonization in sectors that are difficult to electrify: • Heavy industry (steel, cement, chemicals) • Long-haul transportation (shipping, aviation, heavy trucking) • Energy storage and grid balancing • Industrial heating processes Global Project Pipeline Major green hydrogen projects announced or under construction in 2025: NEOM Green Hydrogen (Saudi Arabia) • Capacity: 600 tonnes/day • Powered by 4 GW of wind and solar • World’s largest green hydrogen facility European Hydrogen Backbone • 40,000 km pipeline network planned • Connecting production to demand centres • 23 European countries involved Australia’s Hydrogen Hubs • Multiple export-oriented projects • Targeting Asian markets (Japan, Korea) • Government backed with billions in funding Cost Trajectory The cost of green hydrogen production is falling rapidly: • 2020: $5-8 per kg • 2025: $3-5 per kg • 2030 target: Below $2 per kg Key cost drivers: → Electrolyser technology improvements → Renewable energy cost reductions → Scale of production → Supply chain maturation Challenges Despite optimism, significant challenges remain: • Infrastructure for storage and transport • Efficiency losses in conversion • Competition with blue hydrogen (from natural gas with CCS) • Regulatory frameworks still developing • Water availability in arid regions The Oil & Gas Industry’s Role Traditional energy companies are uniquely positioned to lead hydrogen development: • Engineering expertise at scale • Existing pipeline and storage infrastructure • Project management capabilities • Deep understanding of energy markets • Financial resources for large capital projects — Avoltium tracks hydrogen market developments and provides strategic consulting for energy transition planning.