Hydrogen market weekly: China, financing and offtake deals in focus

The hydrogen market continues to show signs of commercial maturity as developers, investors and policymakers place greater emphasis on long-term demand, project bankability and investment discipline.

This week’s developments highlight a sector that is moving beyond announcements and towards commercially viable projects, supported by stronger financing, improving production economics and continued government backing.

One of the week’s most significant developments came from Europe, where renewable hydrogen producer Lhyfe signed a 10-year renewable hydrogen supply agreement with industrial gas company Messer. The deal includes a 30% equity investment by Messer in four Lhyfe production sites, providing long-term revenue visibility while reinforcing confidence in new production capacity. The agreement illustrates how secure offtake contracts are becoming increasingly important in reducing project risk and supporting financing.

Cost competitiveness also remained firmly in focus. A major Power-to-X developer outlined a pathway to producing green hydrogen for less than $2/kg, reflecting continued improvements in electrolyser performance, renewable electricity integration and overall project economics. While actual costs remain dependent on factors such as electricity prices and financing conditions, the announcement highlights the industry’s continued drive towards commercial competitiveness.

Project financing and policy support provided further positive signals for the hydrogen market. OMV secured €450 million in financing from the European Investment Bank for its flagship green hydrogen project, while China reaffirmed hydrogen’s strategic role within its latest national development plans, strengthening support for hydrogen production, industrial decarbonisation and clean energy deployment. Together, these developments point to continued institutional backing for large-scale hydrogen investment.

Not all developments were positive. Plug Power announced plans to divest assets associated with its proposed Texas green hydrogen project, effectively ending its development. While disappointing, the move also reflects a broader trend towards greater capital discipline, with developers increasingly concentrating resources on projects offering the strongest commercial prospects.

As the hydrogen market evolves, successful growth is likely to depend as much on selecting viable projects as on announcing new capacity.

Source: Hydrogen Calc – Hydrogen Market Watch: Offtakes, Project Financing, Cost Competitiveness & Policy Momentum (17 July 2026).