The future of low-carbon hydrogen—including both blue hydrogen and green hydrogen—isn’t in crisis. It’s evolving. According to a recent ERM insight article by David Hart and Jacco Kroon (May 19, 2025), the sector is not failing—it’s having its “dotcom moment”: a market correction where inflated early-stage expectations are giving way to grounded, scalable solutions.
Despite some high-profile delays and scaled-back plans, the hydrogen economy continues to grow:
- Over $75 billion in low-carbon hydrogen projects reached final investment decision (FID) as of mid-2024
- Global production increased by 50%, hitting 1 Mtpa
- Electrolyzer capacity jumped ninefold, now at 5 GW
While most green hydrogen capacity remains on paper, meaningful progress is being made. Flagship projects like NEOM’s 2.2 GW green hydrogen facility and BASF’s 54 MW electrolyzers are moving forward. The report compares this moment to the early 2000s dotcom phase: a market shakeout that will ultimately benefit serious players and long-term innovators.
Where FARST Fits In
At FARST, we see this moment not as a pause—but as the acceleration point for blue hydrogen. Our next-generation technology delivers cost-effective, decarbonised blue hydrogen that’s ready today and built for tomorrow’s carbon markets.
FARST’s approach emphasizes strategic co-location of blue hydrogen plants directly alongside:
- Power generators or fuel cell systems for AI data centres
- Heavy industry such as steel and cement
- Logistics and truck fleets
- Fertiliser manufacturers and other chemical users
- Refueling and energy hubs
By integrating production with real, immediate demand, we cut transport costs, simplify offtake, and speed up emissions reductions. Our hydrogen supports net-zero goals across multiple hard-to-abate sectors—at a price point that makes business sense.
Key Global Trends from the Report
ERM’s analysis highlights global momentum:
- China leads with 60% of global electrolyzer manufacturing and 40% of all FIDs
- Europe follows with 32% of FIDs, driven by policy tools like RED III and the Hydrogen Bank
- Saudi Arabia and India are deploying hydrogen at scale, from green ammonia to industrial decarbonisation
What the Hydrogen Industry Needs Now
To ensure real-world impact, ERM calls for:
- Flexibility in green electricity sourcing rules
- A shift from isolated pilot projects to system-level strategies that align supply, infrastructure, and demand
This echoes FARST’s own model—deploying modular, scalable blue hydrogen technology that’s co-located, capital-efficient, and engineered for long-term success.
Conclusion
The ERM report makes one thing clear: low-carbon hydrogen is not failing—it’s maturing. And the companies that thrive will be those who can deliver clean hydrogen at scale, at cost, and in the right places.
At FARST, we’re ready.
Reference:
David Hart & Jacco Kroon (May 19, 2025). Low-carbon hydrogen isn’t failing – it’s having its dotcom moment. ERM. Read the full article →