US green hydrogen startups are scaling projects overseas. Learn why, where the real opportunities are, and how AI-powered green technology can give you an edge.
Why US Green Hydrogen Startups Are Looking Overseas
As 2025 draws to a close, green technology is no longer a niche—it's the foundation of the next industrial revolution. Yet in one of the most critical areas of decarbonization, green hydrogen, many US startups are quietly doing something surprising: they are building their biggest projects outside the United States.
This shift matters for anyone investing in clean energy, leading sustainability strategy, or building climate-tech solutions. Green hydrogen—hydrogen produced from renewable electricity rather than fossil fuels—could decarbonize heavy industry, long-haul transport, and seasonal energy storage. But where this new hydrogen economy takes root first will shape global supply chains, technology leadership, and job creation for decades.
In this article, part of our Green Technology series, we unpack why US green hydrogen startups are moving on to greener pastures, what Europe, the UK, China, and others are doing differently, and how AI and digital technology can give businesses a strategic edge in this rapidly evolving space.
What Is Green Hydrogen—and Why It's Suddenly Everywhere
Hydrogen has been used for decades in refining, chemicals, and fertilizers, but almost all of it is grey hydrogen, made from natural gas with high COâ‚‚ emissions. Green hydrogen, by contrast, is produced via electrolysis using renewable energy (solar, wind, hydro), and emits virtually no COâ‚‚ at the point of production.
Why green hydrogen matters now
Green hydrogen is uniquely positioned to tackle the "hard-to-abate" sectors that electrification alone can't easily solve:
- Steel and cement production
- Chemical and fertilizer manufacturing
- Maritime shipping and aviation (as hydrogen or synthetic fuels)
- Long-duration and seasonal energy storage for renewable-heavy grids
In other words, if the first wave of green tech was about solar panels and EVs, the next wave is about molecules, not just electrons. That's where hydrogen—and the startups building it—come in.
The US paradox: tech leadership, project relocation
The US hosts some of the most recognizable hydrogen players, including Plug Power and a growing ecosystem of electrolyzer and fuel cell startups. Federal policy, from clean hydrogen tax credits to infrastructure funding, has improved markedly in recent years.
Yet many of these companies are:
- Bidding on and building large projects in Europe and the UK
- Signing long-term offtake agreements in Asia, especially China and emerging markets
- Partnering with foreign utilities and industrials instead of domestic ones
The reason is not lack of innovation—it's a combination of policy certainty, market design, and demand signals abroad that are, in many cases, clearer than at home.
Why US Green Hydrogen Startups Are Looking Abroad
1. Policy certainty and long-term signals
While the US has introduced powerful incentives, many startups still see more predictable frameworks in Europe and the UK.
- The European Union has set binding renewable hydrogen targets for industry and transport.
- The UK is rolling out contracts-for-difference style support for low-carbon hydrogen.
- Several European member states and China have national hydrogen strategies with concrete timelines and capacity goals.
US policy is improving, but from a founder's perspective, the questions are practical:
- Can I lock in a 15–20 year offtake contract with a creditworthy industrial customer?
- Will the regulatory definitions of "green" or "clean" hydrogen remain stable over the life of the project?
- Is there a clear premium for low-carbon hydrogen vs. fossil-based alternatives?
In Europe and parts of Asia, the answer is increasingly "yes," making it easier for startups to raise project finance and scale.
2. Stronger early demand from heavy industry
Many of the first big buyers of green hydrogen are not in the US. Companies in:
- Germany, the Netherlands, and Scandinavia are piloting green steel, green ammonia, and hydrogen-based refinery operations.
- The UK is targeting industrial clusters like Teesside and Humber for hydrogen substitution.
- China is rapidly exploring hydrogen for heavy transport, industrial heat, and chemical feedstocks.
For startups, these demand centers mean:
- Tighter integration with existing industrial ecosystems
- Access to ports, pipelines, and storage infrastructure
- More willingness from buyers to pay a green premium, often supported by regulation or carbon pricing
By contrast, in the US, many industrial buyers are still testing the waters or waiting for further clarity on regulation, carbon pricing, and supply reliability.
3. Grid access, permitting, and infrastructure
Green hydrogen projects live or die on access to cheap, reliable renewable power and the ability to connect to transport infrastructure (pipelines, ports, trucking, rail).
- Some US regions, like Texas, have abundant wind and solar, making them prime candidates for large-scale green hydrogen.
- But transmission constraints, complex permitting, and fragmented state-level rules can slow projects.
In parts of Europe and the UK, while permitting is hardly frictionless, coordinated national and regional hydrogen plans are emerging that map out:
- Where hydrogen hubs will be located
- Which ports and industrial clusters will connect first
- How existing gas infrastructure might be repurposed
This integrated planning gives startups greater confidence that their projects will plug into a functioning ecosystem rather than sit as isolated pilots.
Global Hotspots: Europe, the UK, China, and Texas
Europe: Policy-driven hydrogen clusters
The EU's aggressive climate targets have turned Europe into a testbed for green hydrogen business models.
Key features attracting US startups:
- Hydrogen valleys and clusters co-locating production, industry, and transport
- Financial support mechanisms reducing revenue risk
- Open collaboration among utilities, industrials, and technology providers
Europe is not just subsidizing technology—it is engineering full value chains from renewables and electrolysis to end-use in steel, chemicals, and mobility.
UK: Early mover in market design
The UK is positioning itself as a hydrogen market pioneer, particularly for offshore wind–powered hydrogen.
US players see opportunity in:
- Long-term, contract-based mechanisms that stabilize revenue
- Clear guidance on what qualifies as low-carbon hydrogen
- Strong interest from industrial clusters and ports in decarbonizing quickly
This combination allows green hydrogen startups to structure bankable projects faster than in less defined markets.
China: Scale, speed, and manufacturing muscle
China is already a manufacturing powerhouse for electrolyzers and other hydrogen technologies. For US startups, China represents:
- Massive scale potential in heavy transport and industrial demand
- Extremely rapid deployment cycles once policy signals align
- Access to low-cost components and manufacturing partnerships
The trade-off is navigating IP protection, geopolitical risk, and a very different regulatory environment. Still, for startups under pressure to scale, the allure of Chinese demand and manufacturing capacity can be strong.
Texas: America's quiet green hydrogen giant
Despite the overseas pull, it would be a mistake to overlook Texas. The state combines:
- World-class wind and solar resources
- Extensive pipeline and port infrastructure
- A large base of industrial energy users
Texas is emerging as one of the few US regions where the economics of green hydrogen can already compete for certain applications—especially when coupled with federal tax incentives. Several large-scale projects, including those involving US pioneers like Plug Power, are testing whether the US can build its own hydrogen powerhouse rather than ceding ground abroad.
How AI and Digital Tools Are Accelerating Green Hydrogen
Because this article is part of our Green Technology series, it's important to highlight how artificial intelligence and digitalization are transforming green hydrogen from a risky bet into a manageable, data-driven business opportunity.
AI-optimized site selection and design
Finding the right location for a green hydrogen plant is a complex optimization problem:
- Renewable resource quality (solar, wind, or hybrid)
- Grid connection costs and congestion
- Access to water, land, and permitting
- Proximity to industrial demand and logistics
AI and advanced analytics can:
- Use satellite, weather, and grid data to rank potential sites by long-term profitability
- Optimize the sizing of electrolyzers, storage, and renewables under different price and policy scenarios
- Automatically generate multiple design options and stress-test them against market volatility
For project developers, this means fewer dead-ends and a clearer path to bankable, investor-ready projects.
Predictive operations and cost reduction
Once a green hydrogen plant is built, machine learning can significantly improve performance:
- Predictive maintenance on electrolyzers and compressors reduces downtime
- Smart scheduling aligns production with low electricity price windows and high renewable output
- Dynamic optimization balances hydrogen output, storage levels, and offtake commitments
This is crucial, because green hydrogen's economics are extremely sensitive to utilization rates and electricity costs. AI is quickly becoming a competitive differentiator for startups seeking lower levelized cost of hydrogen (LCOH).
Digital transparency for buyers and regulators
Large industrial customers increasingly ask: How green is this hydrogen, really?
Digital tools and AI-powered platforms can:
- Track real-time emissions intensity of hydrogen production
- Attribute renewable energy certificates and carbon data to specific batches
- Provide auditable carbon accounting dashboards for buyers, regulators, and financiers
This transparency helps de-risk long-term offtake contracts and supports compliance with emerging regulations in Europe, the UK, and beyond.
What Businesses Should Do Now: Practical Next Steps
Whether you are in energy, manufacturing, logistics, or finance, the rise of green hydrogen is not a distant possibility—it's a strategic reality unfolding now. Here are concrete actions to consider.
1. Map your exposure and opportunity
Identify where hydrogen might intersect your business in the next 5–15 years:
- High-temperature process heat
- Chemical feedstocks (e.g., ammonia, methanol)
- Heavy transport or fleet operations
- Backup power or long-duration storage needs
For each area, assess:
- Current fossil-based costs and emissions
- Regulatory and customer pressure to decarbonize
- Potential role of green hydrogen vs. direct electrification
2. Explore pilot projects and partnerships
Instead of waiting for a perfect market, consider small-scale pilots with green hydrogen startups or technology providers:
- Onsite hydrogen for forklifts, trucks, or backup power
- Blending hydrogen into existing industrial processes
- Participating in a regional hydrogen hub or cluster
Use these pilots to build internal know-how, test safety and operational procedures, and prepare for larger commitments.
3. Integrate AI and data from day one
If you engage in green hydrogen—whether as a buyer, producer, or investor—treat data and AI as core infrastructure, not an add-on:
- Implement real-time monitoring for energy use, emissions, and performance
- Use advanced analytics for scenario planning on fuel prices, carbon costs, and policy changes
- Build or adopt digital tools that provide auditable, decision-ready insights for executives and stakeholders
This approach aligns with the broader Green Technology trend: using intelligent systems to unlock sustainability and profitability at the same time.
Conclusion: Will the US Lead—or Just Invent—the Hydrogen Future?
The story of US green hydrogen startups moving on to greener pastures is not about failure; it's about startups doing what they must to survive and scale in a fast-moving global market. For now, Europe, the UK, China, and select regions like Texas are setting the pace with clearer policies, stronger early demand, and integrated infrastructure plans.
For businesses and policymakers in the US, the choice is stark: either double down on creating a competitive home market, or risk watching domestic innovators scale their breakthroughs elsewhere. For executives and sustainability leaders, the opportunity is to engage early, leverage AI-driven green technology, and secure a place in the emerging hydrogen value chain.
As the green hydrogen economy takes shape over the next decade, a key question will be: who simply buys the technology—and who helps build the ecosystems that define the next era of clean industry?