The Q2 2025 European Hydrogen Market Report from Aurora Energy Research highlights the Nordics and Iberia as leaders in renewable hydrogen production in Europe. These regions are excelling in delivering cost-competitive hydrogen projects that comply with strict EU standards. Power Purchase Agreements (PPAs) are gaining traction as a preferred procurement strategy, with innovative variations like hybrid setups and battery integration being utilized to reduce production costs. The report emphasizes that the Nordics and Iberia stand out due to their abundant and low-cost renewable electricity, ideal for electrolysis. The global pipeline for hydrogen electrolyser projects has grown modestly to 1.3 TW, with Europe leading the way in new project announcements. Policy advancements, including initiatives like ReFuelEU and FuelEU Maritime, are providing regulatory clarity and propelling hydrogen adoption across the continent. Aurora's outlook suggests a willingness to pay for industrial process heat in addition to existing demand, expanding opportunities for renewable hydrogen. While the current market operates mostly through bilateral agreements, its long-term evolution could shift towards a more structured market depending on future policy and investment developments.