As global enthusiasm for green hydrogen wanes, more than $22 billion in clean energy projects have been cancelled worldwide in the first half of 2025. The trend is accelerating, with June 2025 alone seeing $6.7 billion in project cancellations, dealing a heavy blow to the industry’s future.
Fortescue, once a champion of green hydrogen, has abandoned two major projects that had already received final investment decisions. According to Agustin Pichot, CEO for growth and energy, the company required more clarity in initiatives before continuing with these projects. The company took a $150 million pre-tax write-down on these failed ventures, including an 80MW project in Arizona.
Job losses are mounting quickly. The cancelled projects have eliminated 16,500 jobs globally in 2025, with 5,300 of those losses occurring just in June. A total of 58 clean energy projects have been canceled, closed, or scaled back since federal tax credits were introduced in August 2022. The economic impact extends beyond direct employment, affecting local supply chains and supporting industries.
Political divisions are evident in the pattern of cancellations. Republican-controlled districts have been hit hardest, losing $11.7 billion in investments and 11,700 jobs. Democratic districts haven’t escaped unscathed, with $6.1 billion in lost investments and 4,000 jobs disappearing.
The causes behind this trend are complex. Regulatory uncertainty tops the list, with the U.S. Congress pushing to end federal clean energy tax credits. Cost overruns and challenging economics have made many projects financially unviable. National priorities are shifting away from green ambitions, particularly in the United States.
Major manufacturers are also retreating from clean energy commitments. General Motors cancelled a $4.3 billion expansion for electric pickups, choosing to invest in traditional combustion engines instead. Toyota scaled back its $2.2 billion commitment to electric SUV production.
New clean energy investment announcements totaled just $2.1 billion in June, far below what’s needed to offset the massive cancellations. Investors are reassessing risks in the green hydrogen sector, creating a cycle of caution that’s slowing investment further. Companies that previously invested in next-gen technologies like green hydrogen are now exploring more reliable revenue streams through corporate power purchase agreements.
As high-profile projects continue to fail, confidence in the clean energy shift is eroding, widening geographic investment gaps and deepening economic divides between regions.
