Middle East crisis exposes vulnerabilities in global hydrogen supply chains: IEA

PARIS, (UrduPoint / Pakistan Point News / WAM - 18th Jun, 2026) The conflict in the middle East has disrupted global production and trade in hydrogen-based products, exposing vulnerabilities in supply chains that underpin fertiliser production, refining and chemicals manufacturing, according to a new IEA report.

The latest edition of the IEA’s Global Hydrogen Review finds that the crisis is renewing interest in hydrogen and hydrogen-based fuels as options to strengthen energy security in the long term, although low-emissions hydrogen remains far from the scale required to provide an immediate response.

The report shows that demand for hydrogen worldwide surpassed 100 million tonnes in 2025, while production of low-emissions hydrogen grew by 20% to almost 1 million tonnes. However, persistent barriers including high costs, uncertain demand, complex regulations and a lack of infrastructure continue to slow the development of low-emissions hydrogen, putting 2030 targets announced by governments increasingly out of reach.

"The current crisis has highlighted how deeply economies around the world depend on trade in hydrogen-based products – from fertilisers to fuels and industrial feedstocks – and the significant role of the Middle East in those supply chains," said IEA Executive Director Fatih Birol. "Countries are looking for ways to make their energy systems more resilient and diversified.

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Low-emissions hydrogen can play an important role in those efforts over time, but stronger policy support and much faster deployment will be needed before it can make a meaningful contribution at scale."

Pipeline of announced projects for producing low-emissions hydrogen by 2030 has shrunk by around a quarter since last year to 27 million tonnes due to delays and cancellations. Projects that have reached final investment decision or have a strong likelihood of becoming operational by 2030, have fallen from 10 million tonnes in last year’s assessment to just above 6 million tonnes.

Demand remains the key missing piece. The volume of low-emissions hydrogen covered by new offtake agreements remained low in 2025, broadly unchanged from the previous year. Only around 20% of newly signed volumes were backed by firm contractual commitments. This lack of demand certainty continues to be cited by developers as one of the largest barriers to investment.

According to the report, hydrogen could support industrial development, improve food security through domestic fertiliser production and help countries in Africa move up the value chain in sectors such as steelmaking. However, success will depend on reducing financing costs and ensuring that hydrogen strategies are integrated with broader economic development priorities.