For years, hydrogen has been viewed as one of the potential key technologies supporting the transition to a zero-emission economy. However, uncertainty around commercial viability and the slow development of infrastructure have so far kept expectations modest. Renee Kauler, CEO of hydrogen storage technology company H2Adsorb, provides an overview of the key trends of 2025 and where the sector is heading.
“Until recently, discussions mainly focused on whether hydrogen would reach the market at all. At the World Hydrogen 2025 conference, however, one message came through clearly: the question is no longer if hydrogen will reach the market, but how fast and in which sectors,” said Kauler. “This does not mean an immediate breakthrough across the entire energy system, but rather a gradual transition from pilot projects to real economic activity.”
According to the International Energy Agency’s (IEA) Global Hydrogen Review 2025, investments in low-emission hydrogen projects reached USD 4.3 billion in 2024—nearly an 80% increase compared to the previous year. “Funding is already being directed toward large-scale projects, not just pilot phases. Total investments in 2025 could reach around USD 8 billion, indicating growing confidence in the commercial viability of hydrogen,” Kauler noted.
Photo by Tõnis Tuuder
Political Support and Infrastructure Development
The expert pointed out that hydrogen policy reviews in 2025 show a global increase in national and regional strategies, with targets being set for both production volumes and support mechanisms. “The focus is increasingly on how political support can trigger real projects and drive investment in infrastructure,” Kauler explained. Currently, Europe is developing a hydrogen-ready infrastructure network that includes more than 50,000 km of pipelines, the conversion of LNG terminals, and nearly 45 GW of gas-fired power plants being adapted for blue and green hydrogen.
Growing Demand in Specific Sectors
“According to the IEA, investments in 2024–2025 were split roughly evenly between green electrolysis and carbon capture-related CCUS solutions. Diversifying production provides flexibility for the sector—since not all regions can transition immediately to green hydrogen, part of production may continue to rely on blue hydrogen. This does not, however, hinder broader adoption already today,” said Kauler.
He added that although hydrogen’s share of global energy consumption remains small, it is currently used most extensively in the chemical and refining industries. The next sectors expected to see increased hydrogen adoption are the metals industry, as well as maritime and road transport.
“Developments this year show that the hydrogen sector is gradually moving from the research and pilot phase toward investment, infrastructure development, and deployment. For Europe and Estonia, this represents a significant opportunity to reduce dependence on fossil fuels, strengthen energy security, and benefit from these developments by taking the right steps early,” Kauler concluded.