As the world accelerates toward decarbonization, green hydrogen has emerged as one of the most promising pillars of the energy transition. Produced through electrolysis powered by renewable sources, hydrogen has the potential to decarbonize hard-to-abate sectors — from heavy industry to transport — while supporting energy independence and grid stability. Governments worldwide are now designing policies, incentives, and partnerships to turn this potential into a scalable reality. Their shared goal: transforming hydrogen from a niche technology into a key enabler of a cleaner, more resilient global economy.
The New Energy Imperative
The urgency of climate change and volatile fossil fuel markets have reshaped the energy priorities of many nations. Policymakers increasingly view green hydrogen not only as a tool for reducing CO₂ emissions but also as a strategic asset for energy security and industrial competitiveness.
Unlike conventional fuels, hydrogen can be produced locally using renewable resources such as solar and wind. This allows countries to diversify their energy mix, reduce import dependency, and create domestic value chains — from component manufacturing to large-scale electrolysis systems.
For industries like steel, chemicals, and mobility, green hydrogen offers a path to deep decarbonization without compromising productivity or economic growth.
Policy Models Driving the Hydrogen Economy
Across the world, governments are shaping the energy transition through distinct but complementary policy models.
Each region combines regulation, incentives, and industrial partnerships to accelerate hydrogen’s role in a decarbonized economy.
European Union (EU) – The Green Deal, Fit for 55, and REPowerEU
The European Union continues to lead global hydrogen policy. Building on the European Green Deal and the Fit for 55 package, the EU’s REPowerEU roadmap (2025–2027) introduces new legislative measures to accelerate the transition toward clean energy.
The updated plan targets up to 20 million tonnes of renewable hydrogen by 2030, equally split between domestic production and imports. This is supported by the expansion of the European Hydrogen Bank, new cross-border infrastructure under the European Hydrogen Backbone, and the development of integrated hydrogen valleys across member states.
The Commission has reaffirmed its commitment to hydrogen as a cornerstone of Europe’s decarbonisation and energy security strategy. The focus for the coming years is on scaling up infrastructure, ensuring certification and traceability, and harmonising international import and export frameworks.
United States – The Inflation Reduction Act and Hydrogen Hubs
The United States remains a key player in the global hydrogen transition, though its policy framework is currently evolving.
The Inflation Reduction Act (IRA), enacted in 2022, introduced a set of long-term tax credits to promote clean hydrogen production — including the Clean Hydrogen Production Credit (Section 45V), rewarding low-carbon hydrogen up to $3/kg. These incentives are still in force, and updated guidance was confirmed by the U.S. Treasury in early 2025.
In parallel, the Regional Clean Hydrogen Hubs Program (H2Hubs), managed by the U.S. Department of Energy, continues to develop large-scale ecosystems for production, storage, and distribution. However, with the 2025 change in administration, funding priorities are being reassessed, and some hubs may face reductions or restructuring.
Despite this uncertainty, the United States remains a pivotal market for industrial-scale hydrogen, driven by state-level policies and strong private investment momentum.
China – From Industrial Hydrogen to Green Transformation
The Medium and Long-Term Plan for Hydrogen Energy Industry Development (2021–2035) outlines China’s ambition to make hydrogen a key pillar of its decarbonisation strategy.
Recent policies promote large-scale electrolysis projects powered by solar and wind, particularly in regions such as Inner Mongolia, Hebei, and Xinjiang, where renewable capacity is abundant. China is also prioritising fuel cell vehicles and industrial hydrogen applications, positioning itself as both a technology supplier and a future exporter of green hydrogen. The government’s approach combines central planning, regional pilot zones, and public–private partnerships to accelerate adoption while maintaining economic competitiveness.
Japan and South Korea– Technology and Industrial Vision
In Asia, Japan and South Korea are strengthening their leadership through long-term industrial planning and technological innovation.
Japan’s Basic Hydrogen Strategy remains the foundation of its energy policy, integrating hydrogen in power generation, transport, and heavy industry. Updates introduced in 2024 establish new lifecycle emission thresholds for “clean hydrogen” and reinforce international import partnerships with Australia and the Middle East.
South Korea’s Hydrogen Economy Roadmap 2040 follows a similar trajectory. Hydrogen has been declared a national strategic technology, and the country launched the world’s first hydrogen power-bidding market to stimulate private investment. Current priorities include the expansion of refuelling infrastructure, fuel-cell production, and national certification schemes for low-carbon hydrogen.
Together, Japan and South Korea are turning Asia into a hub of hydrogen technology, driving industrial competitiveness and regional energy security.
Middle East – NEOM Green Hydrogen and Masdar Clean Energy Projects
The Middle East has become one of the most dynamic regions for green hydrogen development, leveraging vast renewable resources and export-oriented strategies.
In Saudi Arabia, the NEOM Green Hydrogen Project remains one of the world’s largest ventures, producing hydrogen and ammonia entirely from wind and solar energy for international markets.
In the United Arab Emirates, Masdar continues to expand its clean energy portfolio, developing large-scale hydrogen and e-fuels plants for both local use and export.
New alliances with European and Asian partners are positioning the region as a future leader in cost-competitive renewable hydrogen exports, marking a shift from fossil energy dominance to clean-energy leadership.
Global Hydrogen Alliances and Collaborations
The global hydrogen economy is being built through strategic alliances and industrial partnerships that unite governments, research centres, and technology providers.
Initiatives such as the Hydrogen Council and regional cooperation platforms are promoting shared standards, certification frameworks, and joint investments to scale up hydrogen value chains.
In this context, FRIEM actively participates in international associations and collaborative projects dedicated to the advancement of hydrogen technologies.
By sharing expertise in power conversion and system integration, FRIEM supports the development of efficient electrolysis and industrial hydrogen solutions — working alongside partners who share the same commitment to sustainability and innovation.
Challenges in Global Hydrogen Policy Implementation
Despite strong policy ambitions, the global hydrogen sector still faces structural challenges.
Production costs remain high, infrastructure deployment is uneven, and the lack of harmonised standards slows international trade and investment.
For many industries, the transition to hydrogen requires not only supportive policies but also reliable, high-efficiency technologies capable of operating under variable renewable conditions.
Another factor shaping the pace of adoption is competition among different types of hydrogen.
While green hydrogen, produced through electrolysis powered by renewable sources, is the most sustainable option, it remains more expensive than other forms.
Blue hydrogen, derived from natural gas with carbon capture, and grey hydrogen, produced without carbon abatement, are currently cheaper but emit CO₂ during production.
Achieving cost parity for green hydrogen is therefore one of the sector’s main priorities — requiring large-scale deployment, supportive policies, and continuous innovation in efficiency and conversion systems.
To support this evolution, FRIEM designs and manufactures advanced Power Supply Units (PSUs) that ensure stable, efficient, and precise energy delivery to electrolysis systems.These PSUs are developed to optimise performance under fluctuating renewable inputs, enhancing both the reliability and cost-effectiveness of green hydrogen production.
The Future of Global Hydrogen Policy
The coming decade will be decisive in transforming hydrogen from policy ambition into industrial reality.
Governments are working to align certification systems, trade frameworks, and cross-border infrastructure, while industries are scaling up production, storage, and technology integration.
In this context, collaboration between institutions, associations, and technology providers will play a crucial role in ensuring consistent progress and shared standards.
FRIEM, through its involvement in hydrogen-focused associations and its expertise in Power Supply Units (PSUs) and energy conversion systems, actively supports this transition.
By developing reliable, efficient, and scalable solutions for electrolysis and industrial hydrogen applications, FRIEM helps strengthen the link between renewable power and the technologies that make the global energy transition possible.