2Q 2023

Analyst Insight: Incentive Schemes for Green Hydrogen

Hydrogen Electrolyzer Tracker Insights

Outside of a few niche applications, green hydrogen is currently unable to compete with grey hydrogen and fossil fuels on a cost basis. This picture is expected to alter over the long-term as technology improvements, reductions in renewable energy input costs, innovations in project design, and upscaling of electrolyzer manufacturing help to drive down production costs. However, government support will be key to bridging the cost gap between green hydrogen and competing fuels as the industry matures.

Governments in North America and Europe have introduced a range of incentive schemes for hydrogen projects, backed by significant levels of public funding. Most notably, these include generous production tax credits introduced by the Inflation Reduction Act in the United States, the Hydrogen Production Business Model in the UK, and the European Hydrogen Bank in the European Union.

This fifth edition of the Guidehouse Insights Hydrogen Electrolyzer Tracker Analyst Insight summarizes key findings from the tracker and provides an overview of incentive schemes in North America and Europe.

Pages 14
Tables | Charts | Figures 5
  • What are the key incentive schemes for green hydrogen projects and how do they function?
  • How does government funding for green hydrogen projects vary among key global markets?
  • What steps must green hydrogen project developers take to access government funding?
  • What are the differences in policy support for green hydrogen in the US and Europe?
  • How is international competition influencing the outlook for electrolyzer manufacturers?
  • Electrolyzer OEMs
  • Component suppliers
  • Engineering & procurement companies
  • Green hydrogen project developers
  • Industrial hydrogen consumers
  • Utilities
  • Policy makers



Executive Summary

Market Inflection Trends

Market Drivers and Barriers

H2 Funding Case Studies and Trends

Key Recommendations

Acronyms & Abbreviations

Additional Resources & Contact

  • Countries with Awarded Hy2Tech IPCEI Projects by Number of Projects Awarded, EU, 2022
  • Countries with Awarded Hy2Use IPCEI Projects by Number of Projects Awarded, EU, 2022
  • Number of Green Hydrogen Projects Coming Online, UK, Operational and Planned, 2011-2030
  • Market Drivers and Barriers
  • Production and Investment Tax Credits
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