Company: HYSR
Filing Date: 2025-09-15
Form Type: 10-K
Source: 0001213900-25-087311
Chunk: 13

Company: SUNHYDROGEN, INC.
Filing Date: 2025-09-15
Form: 10-K
Item: Item 1
Chunk 13
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hydrogen production costs could fall by around 50% by 2030, enabling cost parity with grey hydrogen in advanced markets. Deloitte projects
that this market could be worth $1.4 trillion annually by 2050, opening opportunities in heavy transport, industrial feedstock, and grid
balancing (Deloitte, 2023 Renewable Hydrogen Outlook; IEA, Global Hydrogen Review 2024).

8

Global policy frameworks are aligning

Governments in all major regions are advancing national hydrogen strategies
backed by funding, regulatory alignment, and cross-border cooperation. The Hydrogen Council reports that more than 50 national hydrogen
roadmaps are now in place, covering countries that together account for ~88% of global renewablehouse gas emissions (Hydrogen Council,
2025). Multilateral initiatives — such as the Clean Energy Ministerial’s Hydrogen Initiative and the International Partnership
for Hydrogen and Fuel Cells in the Economy — are accelerating policy harmonization and enabling large-scale trade and standardization.

Deployment is gaining traction

IEA’s Global Hydrogen Review 2024 notes that the number of
low-emissions hydrogen projects reaching FID doubled over the past year, setting the stage for a potential fivefold increase in global
production capacity by 2030. Deloitte estimates that the current pipeline could deliver around 44 million tonnes of clean hydrogen by
2030 — about a quarter of expected demand — highlighting both the progress made and the scale of opportunity ahead (Deloitte,
Pathways to Decarbonization | Hydrogen, 2023).

Existing Market Growth

Hydrogen’s early market expansion is being
accelerated by targeted policy incentives, maturing technologies, and increasing industrial adoption. The International Energy Agency
(IEA) reports that over the last year the number of low emissions hydrogen projects reaching final investment decision (FID) doubled,
even as much of the pipeline remains at earlier stages. This momentum is laying the groundwork for scale-up this decade (IEA; Ammonia
Energy Association).

In the United States, the Inflation Reduction Act
(IRA) established the Section 45V Clean Hydrogen Production Tax Credit. Final Treasury/IRS regulations issued January 3, 2025 confirm
a tiered, per-kilogram credit of up to $3/kg based on lifecycle carbon intensity ≤4 kg CO₂e/kg H₂, available for 10 years
from the date the facility is placed in service; credits are transferable