Hydrogen: Forms and Footprints
Hydrogen, the lightest and most abundant element in the universe, often called the “fuel of the future”. Composed of one proton and one electron, it is rarely found in its pure form and is bound in compounds such as water and hydrocarbons. What makes hydrogen unique is that its environmental footprint depends entirely on how it is generated.
Grey hydrogen, the most prevalent form today, is produced from fossil fuels (natural gas) via steam reforming, resulting in substantial carbon dioxide (CO₂) emissions. Blue hydrogen follows the same pathway while incorporating carbon capture and storage (CCS) technologies to mitigate emissions. Green hydrogen, regarded as the cleanest form, is produced through electrolysis, a process that uses renewable energy to split water into hydrogen and oxygen, resulting in virtually zero carbon emissions. Other forms include turquoise hydrogen, created through methane pyrolysis which yields solid carbon instead of CO₂ but can also release methane, a potent greenhouse gas with a 100-year global warming potential roughly 28 times that of CO₂, and pink hydrogen produced via nuclear-powered electrolysis.
Among these, green hydrogen stands out as a transformative fuel, uniquely positioned to decarbonize hard-to-abate sectors and support the global energy transition. Unlike grey or blue hydrogen, it relies entirely on renewables and offers a scalable, sustainable long-term alternative.
Green Hydrogen and the Quest for Decarbonization
Decarbonization is the process of reducing carbon emissions across industries, transport, and energy systems and is essential for meeting global climate goals. While renewable energy like solar and wind has already reshaped the electricity sector, many sectors may still find it challenging to decarbonize due to their dependence on high heat, fossil fuels, or long-haul energy storage. Green hydrogen provides a solution to these challenges. Furthermore, it can act as a large-scale energy storage medium, balancing the intermittency of renewables and enabling greater grid stability.
According to International Energy Agency, despite its enormous potential, the widespread adoption of green hydrogen is constrained by significant economic challenges. At present, the cost of producing green hydrogen remains much higher than that of conventional hydrogen. Grey hydrogen costs around $1.00-$1.50 per kilogram, while green hydrogen ranges between $4.00 and $12.00 per kilogram, depending on renewable energy availability and electrolyser efficiency. To overcome this barrier, strategies are emerging globally to make green hydrogen more affordable and competitive. Scaling up production capacity and establishing large electrolysis plants, along with the declining prices of renewable electricity, improved electrolyser efficiency, and innovations in materials (such as non-precious metal catalysts), can significantly reduce energy and capital costs. Governments are also stepping in with supportive policies and financial incentives such as subsidies, carbon pricing, low-interest financing, duty waivers, and open-access renewable power without transmission charges.
As global pledges for net-zero gain momentum, strategies to scale green hydrogen are bridging the gap between potential and reality. According to the Institute for Energy Economics and Financial Analysis (IEEFA), these measures could reduce costs by up to 40% by 2030, bringing the levelized cost closer to ₹260-310 per kg ($3.00-3.75 per kg) in India and making it far more viable for industries. This is particularly important for heavy industries, which remain among the largest sources of greenhouse gas emissions. Steel production alone contributes 7-8% of global CO₂ emissions, cement adds around 7%, the chemical sector another 5-6%, and heavy transport including aviation and shipping accounts for over 15%. These “hard-to-abate” sectors cannot depend on electrification alone, which is why green hydrogen is emerging as a critical solution. Produced through renewable-powered electrolysis, it offers the potential to replace coal in steel plants, reduce emissions in cement manufacturing, and provide sustainable fuels for aviation and shipping making, it an anchor of industrial decarbonization.
Global Push for Green Hydrogen
The transition toward a net-zero future is not confined to any one nation, green hydrogen has become a shared global priority. Countries across the world are ramping up investments and policies to accelerate the green hydrogen economy. The European Union, under its Hydrogen Strategy, aims to produce 10 million tonnes of green hydrogen annually by 2030, while Japan and South Korea are investing heavily in hydrogen-powered mobility and fuel cell technologies. The United States, through the Inflation Reduction Act, is creating hydrogen hubs with financial incentives to lower production costs and expand adoption.
A distinctive initiative by the European Union is the development of Hydrogen Valleys”- integrated regional ecosystems that connect hydrogen production, storage, transport, and end-use across multiple sectors. These large-scale demonstration projects not only accelerate adoption but also foster collaboration across industries and borders. Together, such initiatives reaffirm hydrogen’s role as a foundation of the clean energy future.
India is also advancing its clean energy transition through the National Green Hydrogen Mission, launched in January 2023, which targets the production of 5 million metric tonnes of green hydrogen annually by 2030, supported by 125 GW of new renewable capacity. The mission is projected to drive investments of ₹8 lakh crore, create over 6 lakh jobs, save nearly ₹1 lakh crore annually in fossil fuel imports, and cut 50 MMT of carbon emissions each year. It strategically positions India as a leading exporter of green hydrogen and its derivative, such as green ammonia, green methanol, for designated consumers as energy or feedstock, strengthening both its climate commitments and economic competitiveness.
Green Hydrogen: Powering Tomorrow
The success of green hydrogen will depend on how governments, industries, and innovators align their efforts. Collaboration across borders, strong policy support, and continued investment in technology are essential to overcome the barriers that remain. If pursued with urgency and pragmatism, green hydrogen can move from a niche solution to a defining element of global decarbonization.
