Water Electrolysis and Hydrogen in the European Union- 2025 Status Report on Technology Development, Trends, Value Chains and Markets

This report from the Clean Energy Technology Observatory (CETO) updates the status of water electrolysers and hydrogen in the EU. The EU's cumulative electrolysis capacity is projected to range between 514 MWel and 800 MWel by the end of 2025. The EU's operational manufacturing capacity is estimated at approximately 8.9 GWel/year by the end of 2025, with a potential to reach 41.7 GWel/year by 2030 considering all companies’ announcements. While the EU leads in patenting activities, it faces challenges from state-backed competition, higher capital expenditure costs than anticipated, and critical dependence on imported raw materials. The European sector is supported by significant public funding, with instruments like the Innovation Fund and European Hydrogen Bank.