What Green Hydrogen Is and How It’s Produced
Green hydrogen is a fuel created by separating hydrogen from water using electricity generated from renewable sources. This process, called electrolysis, uses an electric current to split water into hydrogen and oxygen. When powered by solar or wind energy, the result is a clean fuel that doesn’t produce carbon emissions during production.
This method differs from other types of hydrogen. Grey hydrogen is made from natural gas and releases carbon dioxide. Blue hydrogen also uses natural gas but captures some of the emissions. Green hydrogen avoids fossil fuels entirely, making it a cleaner option for industries seeking to reduce their environmental impact.
Electrolysis systems require water, electricity, and specialized equipment called electrolyzers. The hydrogen produced can be stored, transported, or used directly in fuel cells, industrial processes, or power generation. Its flexibility makes it suitable for sectors that are difficult to electrify, such as steelmaking, aviation, and shipping.
According to the International Energy Agency’s Global Hydrogen Review 2025, more than 200 low-emissions hydrogen projects have received committed investment, reflecting growing interest in clean hydrogen production.
Why Green Hydrogen Is Gaining Attention
Interest in green hydrogen is growing as governments and companies look for ways to reduce emissions. It offers a potential solution for industries that rely on high-temperature processes or chemical reactions that can’t easily switch to electricity. Hydrogen can provide the necessary energy without releasing carbon dioxide.
Transportation is another area where hydrogen may be useful. While battery-powered vehicles are common for personal use, hydrogen fuel cells are being tested for buses, trucks, and trains. These vehicles benefit from quick refueling and longer range, especially in areas with limited charging infrastructure.
Green hydrogen also supports energy storage. It can be produced when renewable electricity is abundant, then stored and used later when demand rises. This helps balance supply and demand on the grid and reduces waste from unused solar or wind power.
The ADSW Report 2025 notes that dozens of countries have adopted national hydrogen strategies, with more expected to follow. These strategies aim to develop hydrogen infrastructure, create skilled jobs, and improve energy security.
What Challenges Green Hydrogen Faces
Despite its potential, green hydrogen faces several challenges. One is cost. Producing hydrogen through electrolysis is more expensive than using fossil fuels. The price depends on electricity rates, equipment efficiency, and infrastructure availability. As technology improves and production scales up, costs may decrease.
Infrastructure is another concern. Hydrogen requires specialized pipelines, storage tanks, and refueling stations. These systems differ from those used for natural gas or electricity and need new investments and safety standards. Transporting hydrogen over long distances also presents technical difficulties.
Water availability can be a limiting factor. Electrolysis requires purified water, which may compete with other uses in dry regions. Some projects are exploring the use of seawater or recycled water, but these approaches add complexity and cost.
The IEA’s 2025 review highlights that growth in green hydrogen remains uneven, with barriers including high production costs, infrastructure gaps, and evolving regulatory frameworks. The ADSW report adds that cautious investors are waiting for more clarity before committing to large-scale deployment.
Where Green Hydrogen Is Being Used Today
Several countries have launched green hydrogen projects. In the United States, California is testing hydrogen buses and building refueling stations. Texas and New Mexico are exploring hydrogen hubs for industrial use. Federal funding has been announced for regional hydrogen networks.
Europe is investing in large-scale electrolysis plants and cross-border pipelines. Germany, Spain, and the Netherlands are leading efforts to integrate hydrogen into their energy systems. The European Union has set targets for hydrogen production and use by 2030.
Australia and Chile are developing export-oriented hydrogen industries. These countries have strong renewable resources and aim to supply hydrogen to global markets. Japan and South Korea are potential buyers, with plans to use hydrogen in transport and power generation.
Private companies are also active. Energy firms are building electrolyzers and testing hydrogen applications. Automotive manufacturers are developing fuel cell vehicles and partnering with infrastructure providers. These efforts reflect growing interest in hydrogen as part of broader clean energy strategies.
Green hydrogen remains a developing sector. As costs fall and infrastructure expands, it may become a practical option for industries seeking low-carbon solutions.
