Core Insights - The European Hydrogen Association's report indicates that by 2030, Europe will only be able to produce and import enough clean hydrogen to meet about 60% of regulatory requirements, resulting in a supply gap of approximately 1.1 million tons, which poses a threat to the region's decarbonization goals [1][2] Group 1: Hydrogen Demand and Supply - By 2030, the EU's hydrogen demand is projected to reach 2.8 million tons due to regulations such as the Renewable Energy Directive (III) and the EU Aviation and Maritime Fuel Directives [1] - The domestic electrolysis hydrogen production is expected to reach only 1.43 million tons, with an additional 250,000 tons expected from imports, leading to a total hydrogen supply of about 1.7 million tons by 2030 [1] Group 2: Project Development and Investment - The report highlights a significant slowdown in project development, with only 517 megawatts of electrolysis capacity expected to reach final investment decision between September 2024 and July 2025, compared to 730 megawatts in the third quarter of 2024 alone [2] - The EU has failed to meet its target of deploying 6 gigawatts of electrolysis capacity by 2024, with only 2.84 gigawatts currently under construction, representing just 26% of the capacity needed by 2030 [2] - Germany leads in hydrogen project development with 993 megawatts of capacity in progress, while 94% of planned hydrogen capacity in Europe is concentrated in eight countries, indicating an uneven distribution of hydrogen investment across the continent [2] Group 3: Regulatory and Economic Uncertainties - As of August 2025, only four out of the 27 EU member states have fully or partially implemented the Renewable Energy Directive (III), creating uncertainty regarding actual hydrogen demand and project economics [2] - The lack of clarity in implementation details and insufficient incentives for businesses have particularly impacted the industrial sector's hydrogen demand of 1.3 million tons per year [2]