United States Clean Hydrogen Industry Expands with Plug Power's 100 MW PEM Electrolyzer and Air Products' $4 Billion Texas Project

Global Clean Hydrogen Market reached US$ 5.45 billion in 2024 and is expected to reach US$ 16.52 billion by 2032, growing with a CAGR of 14.87% during the forecast period 2025-2032.

Clean hydrogen refers to hydrogen produced with minimal greenhouse gas emissions, typically via renewable energy sources (green hydrogen) or fossil fuels combined with carbon capture & storage (blue hydrogen). It is considered a key enabler in the transition to net zero, as it can substitute for fossil fuels in difficult sectors like heavy industry, long-haul transport, shipping, and power storage. Clean hydrogen offers flexibility in energy systems, allowing intermittent renewable power to be stored and used later (e.g., via electrolysis). Its expanding role stems from energy, environmental, and policy imperatives globally to reduce carbon emissions and meet climate targets.

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Recent Developments:

United States: Recent Industry Developments

✅ In July 2025, Plug Power commissioned its 100 MW PEM electrolyzer plant in New York, capable of producing 45 tons of green hydrogen daily. The project supports heavy transport and industrial decarbonization, making it one of the largest operational electrolyzer facilities in the U.S.

✅ In June 2025, Cummins Inc. delivered a 50 MW electrolyzer system in Texas as part of a renewable hydrogen hub. The project integrates solar energy for direct hydrogen generation, with commercial operations set to begin by Q1 2026.

✅ In May 2025, Air Products and AES Corporation launched plans for a 200 MW electrolyzer facility in North Texas. Valued at $4 billion, the project will supply hydrogen for ammonia production and fuel cell applications, strengthening U.S. clean energy infrastructure.

Japan: Recent Industry Developments

✅ In July 2025, Toshiba Energy Systems initiated operations of a 20 MW alkaline electrolyzer in Fukushima. Using surplus renewable energy from local wind and solar, the facility will supply hydrogen for both fuel cell vehicles and grid power.

✅ In June 2025, Kawasaki Heavy Industries unveiled a solid oxide electrolyzer cell (SOEC) system designed for high efficiency and reduced electricity consumption. Pilot testing is underway with Japan's leading steel manufacturers to decarbonize industrial operations.

✅ In May 2025, Mitsubishi Power partnered with Chiyoda Corporation to integrate large-scale electrolyzers with offshore wind projects. The initiative aims to boost hydrogen exports under Japan's clean energy diplomacy strategy.

☛ Clean Hydrogen Market Dynamics and Drivers

Policy & Regulatory Support: Governments worldwide are increasingly adopting net-zero targets and carbon reduction mandates, which drive incentives, subsidies, tax credits, and regulatory frameworks favourable to clean hydrogen. Measures like clean-hydrogen production tax credits, low-carbon standards, and public funding for infrastructure all help reduce risk for investors and boost deployment.

Technology Cost Reductions: Key technologies-electrolysers, renewable electricity generation (solar, wind), storage and transport of hydrogen-are improving in efficiency and scale. As renewable power costs decline and electrolyser capacity scales up, the levelized cost of clean hydrogen (especially green hydrogen) is falling, narrowing the gap with fossil-based hydrogen.

Growing Industrial & Sectoral Demand: Industries which are hard to electrify (steel, cement, chemicals), heavy transport (shipping, aviation, long-haul trucks), and power system balancing are increasingly seen as promising end-uses for clean hydrogen. Demand pull from these sectors encourages scale, which in turn supports supply-side investments.

Infrastructure Build-out & Supply Chain Scaling: For clean hydrogen to scale, you need more than just production: pipelines, storage, transport, electrolyser manufacturing capacity, hydrogen hubs, and related logistics are being developed. Regional leadership (Europe, Asia-Pacific, North America) is investing significantly in building reliable supply chains and infrastructure.

☛ Clean Hydrogen Market Competitive Landscape:

Linde plc, Air Products & Chemicals, Inc., Air Liquide, BP p.l.c., Aramco, Engie, Siemens Energy AG, Equinor, ACWA Power, Plug Power.

Research Methodology

We employ a hybrid approach, integrating qualitative insights with robust quantitative analysis to deliver comprehensive and reliable market intelligence. The process starts with extensive secondary research, leveraging trusted industry publications, proprietary databases, and credible market sources. This foundation is then strengthened through targeted primary research, including structured surveys and in-depth interviews with industry leaders, subject matter experts, and key market participants.

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☛ Segment Covered in the Clean Hydrogen Market:

By Technology (Alkaline Electrolyzer, PEM Electrolyzer, SOE Electrolyzer, Photoelectrochemical, Thermochemical, Others)

By Distribution (Pipeline, High-Pressure Cylinders, Cryogenic Tanks, Others)

By End-user (Transport, Industrial, Power Generation, Others)

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☛ Regional Analysis for Clean Hydrogen Market:

⇥ North America (U.S., Canada, Mexico)

⇥ Europe (U.K., Italy, Germany, Russia, France, Spain, The Netherlands and Rest of Europe)

⇥ Asia-Pacific (India, Japan, China, South Korea, Australia, Indonesia Rest of Asia Pacific)

⇥ South America (Colombia, Brazil, Argentina, Rest of South America)

⇥ Middle East & Africa (Saudi Arabia, U.A.E., South Africa, Rest of Middle East & Africa)

☛ Frequently asked questions:

➠ What is the global sales, production, consumption, import, and export value of the Clean Hydrogen Market?
➠ Who are the key global manufacturers, and what is their operational performance?
➠ What are the major opportunities and threats in the global Clean Hydrogen Market?
➠ Which product types or end-users show the most growth potential and market share?
➠ What challenges and constraints are impacting the Clean Hydrogen Market?
➠ What sales, marketing, and distribution channels are used globally?

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