North America Hydrogen Market Report - 2026

While North America remains the leading region for active low-carbon hydrogen deployment, it is experiencing strong market headwinds, driven by policy reversals and funding cuts in the US. The region's ~1.5mtpa of active capacity has been supported by a large industrial base of demand, established CCUS capabilities, and extensive oil and gas infrastructure. The structural advantage is expected to sustain a preference for blue hydrogen, particularly as federal spending cuts in the US continue to constrain green hydrogen development.

North America continues to exhibit the most mature low-carbon hydrogen market, with a significant share of projects advancing to later stages of development. As of year-end 2025, 63% of the region's forecasted 2030 capacity is held in post-feasibility stages of development However, a growing number of projects stalled in 2025, underscoring the impact of mounting market headwinds. While the 45Q tax credit has been expanded under the OBBBA, incentivizing blue hydrogen, the recent rise in natural gas prices adds volatility to feedstock costs and can erode project economics, even as it may temporarily narrow the cost gap with grey hydrogen. Combined with the structural issues in the low-carbon market, these dynamics have elevated investment risk across all stages of North America's project pipeline.

Transport remains the dominant end-use industry for low-carbon hydrogen in North America, with approximately 3mtpa of capacity expected to be allocated to this application, based on current project announcements. Synthetic fuels represent another major end-use sector for low-carbon hydrogen in North America. While current production volumes allocated to other sectors are lower, industrial applications such as fertilizers and iron & steel are increasingly becoming priority areas for hydrogen adoption.

Recent hydrogen policy developments in North America have been primarily driven by the US and Canada, with Mexico in the early stages of developing its National Hydrogen Strategy, reflecting an expanding but still uneven low-carbon hydrogen landscape. In the US, federal policy support has weakened over the past year. The One Big Beautiful Bill Act, enacted in July 2025, significantly curtailed hydrogen-related funding by accelerating the phase-out of the 45V tax credits and sunsetting clean vehicle and infrastructure credits, such as the 45W and 30C. In contrast, Canada is strengthening its policy framework for low-carbon hydrogen. Through its Budget 2025, the government expanded support by amending its Clean Hydrogen Investment Tax Credit, aiming to diversify production pathways.

Key Highlights

• While North America accounts for 71% of global active low-carbon hydrogen capacity, US funding rollbacks under the Trump administration are contributing to a contraction in the region's 2030 outlook, which is down 11% year-on-year.
• North America continues to exhibit the most mature low-carbon hydrogen market, with a significant share of projects advancing to later stages of development. As of year-end 2025, 63% of the region's forecasted 2030 capacity is held in post-feasibility stages of development.
• While many U.S. states remain reliant on federal support mechanisms, particularly the regional hydrogen hub program, policy uncertainty under the Trump administration has contributed to a shift toward more state-led development.
• This shift is accelerating regional divergence in the hydrogen economy. Texas and Louisiana have emerged as leaders in low-carbon hydrogen capacity. Texas currently accounts for ~2.5mtpa across 49 projects, while Louisiana holds ~2.0mtpa across 19 projects.
• Transport remains the dominant end-use industry for low-carbon hydrogen in North America, with approximately 3mtpa of capacity expected to be allocated to this application.

Scope

• A snapshot of the low-carbon hydrogen market
• Major hydrogen developments in North America in 2025
• North America's hydrogen market in a global context
• Key regional projects
• Hydrogen competitiveness drivers in North America
• Leading countries in North America for low-carbon hydrogen production
• Growing role of US states in low-carbon hydrogen production
• Key companies and future leaders operating in North America's hydrogen market
• North America's low-carbon hydrogen capacity scenarios
• Intended use sectors for North American hydrogen
• Hydrogen policies, strategies, and funding initiatives related to hydrogen in North America
• North America hydrogen deals

Reasons to Buy

• Identify the market trends within the region and key players in hydrogen technologies.
• Develop market insight of current, in development and announced capacity and latest trends of the sector.
• Understand the region's different scenarios for 2030 based on the likeliness of the projects.
• Look at the demand in key application areas for the country.
• Facilitate the understanding of how and where the market is growing as it is rapidly scaling up to position as one of the main topics of the international and national agenda.