Green hydrogen's principal purpose is to help limit global warming, reduce fossil fuel dependence by replacing grey hydrogen, and provide for an expanded set of end-uses in specific economic sectors, sub-sectors and activities. These end-uses may be technically difficult to decarbonize through other means such as electrification with renewable power. Its main applications are likely to be in heavy industry (e.g. high temperature processes alongside electricity, feedstock for production of green ammonia and organic chemicals, as direct reduction steelmaking), shipping, and long-term energy storage.[4]
As of 2021, green hydrogen accounted for less than 0.04% of total hydrogen production.[5] As of 2024, producing green hydrogen costs around 1.5 to six times more than producing hydrogen from fossil fuels without carbon capture.[6]:59
Definition
Most commonly,[7]green hydrogen is defined as hydrogen produced by the electrolysis of water, using renewable electricity.[1][2] In this article, the term green hydrogen is used with this meaning.
Precise definitions sometimes add other criteria. The global Green Hydrogen Standard defines green hydrogen as "hydrogen produced through the electrolysis of water with 100% or near 100% renewable energy with close to zero greenhouse gas emissions."[8][9]
A broader, less-used[7] definition of green hydrogen also includes hydrogen produced through various other methods that produce relatively low emissions and meet other sustainability criteria. For example, these production methods may involve nuclear energy or biomass feedstocks.[7][10][11]
Green hydrogen is primarily produced by electrolysis, in which electricity from renewable sources is used to split water (H2O) into hydrogen (H2) and oxygen (O2).[12][13] The process is at most 80% efficient.[14] Producing a kilogram of hydrogen through electrolysis requires around nine litres of water.[14]
The business consortium Hydrogen Council said that, as of December 2023, manufacturers are preparing for a green hydrogen expansion by building out the electrolyzer pipeline by 35 percent to meet the needs of more than 1,400 announced projects.[15]
Main methods
Alkaline Electrolyzers (AE): A mature and cost-effective technology used primarily for large-scale, steady hydrogen production. They operate at 70–90°C using a potassium hydroxide electrolyte and non-precious metal catalysts. While robust, they are less suited for intermittent renewable energy sources.[16]Diagram of an alkaline electrolyser, a common technology for green hydrogen production.
Proton Exchange Membrane Electrolyzers (PEM): Known for compact design and high responsiveness, PEM systems operate at 50–80°C and produce high-purity hydrogen. Their ability to quickly adjust to fluctuating power makes them ideal for coupling with wind and solar, though reliance on platinum and iridium raises capital costs. Current research targets alternative catalysts and recycling strategies.[17]
Animated schematic of a proton exchange membrane (PEM) electrolyzer showing water inlet, proton exchange membrane, and hydrogen/oxygen outlets.
Solid Oxide Electrolyzers (SOEC): Operating at 500–1000°C, SOECs convert electrical and thermal energy into hydrogen with high efficiency. They are well-suited for integration with industrial heat sources or for co-electrolysis of steam and CO2 to form syngas. Challenges include high material stress and slow dynamic response.[18]
Anion Exchange Membrane Electrolyzers (AEM): AEMs are emerging as promising systems that blend AE affordability with PEM flexibility. Designed to use non-noble metals and solid electrolytes, they offer lower-cost solutions with improved dynamic performance.[19]
Alternative production pathways
The following methods are being investigated but have not translated to large scale production.
Photoelectrochemical (PEC) Water Splitting: Merging light capture and electrolysis using semiconductor-based cells to mimic photosynthesis. Stable photoelectrodes and scalable device design.[20]
Biological Hydrogen Production: Leveraging algae and bacteria in biophotolysis or dark fermentation are under active research investigation. While environmentally promising, low yields remain a barrier.[21]
Thermochemical Water Splitting: Using High heat from nuclear or solar sources to trigger chemical water-splitting reactions in solar-rich regions and industrial symbiosis.[22][23]
Biochar-assisted: Biochar-assisted water electrolysis (BAWE) reduces energy consumption by replacing the oxygen evolution reaction (OER) with the biochar oxidation reaction (BOR). An electrolyte dissolves the biochar as the reaction proceeds. A 2024 study claimed that the reaction was 6× more efficient than conventional electrolysis, operating at <1 V, without O2 production using ~250 mA/gcat[clarification needed]H2 current at 100% Faradaic efficiency. The process could be driven by small-scale solar or wind power.[24]Cow manure biochar operated at only 0.5 V, better than materials such as sugarcane husks, hemp waste, and paper waste. Almost 35% of the biochar and solar energy was converted into hydrogen. Biochar production (via pyrolysis) is not carbon neutral.[24]
Scrap iron: Green hydrogen generation is possible from scrapped iron by reacting with water in an exothermic reaction. Good quality magnetite, (3Fe + 4H2O → 4H2 + Fe3O4), is a valuable byproduct.[25]
Scrap aluminum: Green hydrogen production is possible from scrapped aluminum by reacting with water in an exothermic reaction. Good quality aluminum hydroxide and heat are valuable byproducts.[26]
There is potential for green hydrogen to play a significant role in decarbonising energy systems where there are challenges and limitations to replacing fossil fuels with direct use of electricity.
Hydrogen fuel can produce the intense heat required for industrial production of steel, cement, glass, and chemicals, thus contributing to the decarbonisation of industry alongside other technologies, such as electric arc furnaces for steelmaking.[28] However, it is likely to play a larger role in providing industrial feedstock for cleaner production of ammonia and organic chemicals.[4] For example, in steelmaking, hydrogen could function as a clean energy carrier and also as a low-carbon catalyst replacing coal-derived coke.[29]
Hydrogen used to decarbonise transportation is likely to find its largest applications in shipping, aviation and to a lesser extent heavy goods vehicles, through the use of hydrogen-derived synthetic fuels such as ammonia and methanol, and fuel cell technology.[4] As an energy resource, hydrogen has a superior energy density (39.6 kWh/kg) versus batteries (0.15-0.25 kWh/kg for lithium batteries).[30] For light duty vehicles including passenger cars, hydrogen is far behind other alternative fuel vehicles, especially compared with the rate of adoption of battery electric vehicles, and may not play a significant role in future.[31]
Green hydrogen can also be used for long-duration grid energy storage,[32][33] and for long-duration seasonal energy storage.[34] It has been explored as an alternative to batteries for short-duration energy storage.[35]:75
As of 2022, the global hydrogen market was valued at $155 billion and was expected to grow at an average (CAGR) of 9.3% between 2023 and 2030.[36] Of this market, green hydrogen accounted for about $4.2 billion (2.7%).[37] Due to the higher cost of production, green hydrogen represents a smaller fraction of the hydrogen produced compared to its share of market value. The majority of hydrogen produced in 2020 was derived from fossil fuel. 99% came from carbon-based sources.[38] Electrolysis-driven production represents less than 0.1% of the total,[39] of which only a part is powered by renewable electricity.
As of 2024, producing green hydrogen costs around 1.5 to six times more than producing hydrogen from fossil fuels without carbon capture.[6]:59 The current high cost of production is the main factor limiting the use of green hydrogen. A price of $2/kg is considered by many to be a potential tipping point that would make green hydrogen competitive against grey hydrogen.[40][41][42]
Green hydrogen production costs are forecasted to fall due to declines in the costs of renewable electricity and electrolysers.[43]:28 The cost of solar and wind power declined dramatically from 2009 to 2024.[44] Analysts project that electrolyser costs will decline as the green hydrogen industry grows, due to economies of scale and learning-by-doing.[43]:28 The cost of electrolysers fell by 60% from 2010 to 2022,[45] though it rose 50% between 2021 and 2024.[46]Carbon taxes on grey hydrogen would contribute to making green hydrogen cost-competitive.[47]
Production facilities
As of 2023, the global hydrogen market is about 97,000 thousand tonne per year (kt/y). Of this, approximately 4,687 kt/y (~5%) is blue hydrogen, and 146 kt/y (0.15%) is green hydrogen.[48] In 2023, the IEA estimate that 218 kt/y of green hydrogen production capacity had been installed globally.[49] The green hydrogen is manufactured in the following facilities, and others. Some of these feed directly into green ammonia plants or other uses for hydrogen.
Current operational hydrogen production facilities with production capacity over 2kt/y [50]
In 2020, the Australian government fast-tracked approval for the world's largest planned renewable energy export facility in the Pilbara region. In 2021, energy companies announced plans to construct a "hydrogen valley" in New South Wales at a cost of $2 billion to replace the region's coal industry.[51] This has been cancelled. [52]
As of July 2022, the Australian Renewable Energy Agency (ARENA) had invested $88 million in 35 hydrogen projects ranging from university research and development to first-of-a-kind demonstrations. By 2022, ARENA was expected to finalize two or three of Australia's first large-scale electrolyser deployments as part of its $100 million hydrogen deployment round.[53]
In 2024 Andrew Forrest delayed or cancelled plans to manufacture 15 million tonnes of green hydrogen per year by 2030. [54]
The following projects have been cancelled or "Put on hold" Port Pirie,[55] Whyalla,[56] Gladstone[57] and Hunter.[52] Overall 99% of the announced capacity of projects have not progressed beyond the concept or approval stage. “If we look back we probably reached peak hydrogen hype in 2022 with so many projects announced left and right,” Rystad analyst Nigel Rambhujun said. “A lot of them have since quietly been abandoned.” [58]
As of April 2025 there is only 1 active plant remaining under construction, all other large green hydrogen projects have been abandoned. [59] The remaining project, ABEL, seems to have pivoted to green methanol, not hydrogen. [60]
Brazil
Brazil's energy matrix is considered one of the cleanest in the world. Experts highlight the country's potential for producing green hydrogen. Research carried out in the country indicates that biomass (such as starches and waste from sewage treatment plants) can be processed and converted into green hydrogen (see: Bioenergy, Biohydrogen and Biological hydrogen production). The Australian company Fortescue Metals Group has plans to install a green hydrogen plant near the port of Pecém, in Ceará, with an initial forecast of starting operations in 2022. As of Q1 2025 this has not happened. In 2022, the Federal University of Santa Catarina announced a partnership with the German Deutsche Gesellschaft für Internationale Zusammenarbeit, for the production of H2V. Unigel has plans to build a green hydrogen/green ammonia plant in Camaçari, Bahia, which is scheduled to come into operation in 2023. This has not happened as of Q1 2025. Initiatives in this area are also ongoing in the states of Minas Gerais, Paraná, Pernambuco, Piauí, Rio de Janeiro, Rio Grande do Norte, Rio Grande do Sul and São Paulo. Research work by the University of Campinas and the Technical University of Munich has determined the space required for wind and solar parks for large-scale hydrogen production. According to this, significantly less land will be required to produce green hydrogen from wind and photovoltaic energy than is currently required to grow fuel from sugarcane. In this study, author Herzog assumed an electricity requirement for the electrolysers of 120 gigawatts (GW). On 20 November 2023, Ursula von der Leyen, President of the European Commission, announced support for the production of 10 GW of hydrogen and subsequently ammonia in the state of Piauí. Ammonia will be exported from there.
Canada
World Energy GH2's Project Nujio'qonik aims to be Canada's first commercial green hydrogen / ammonia producer created from three gigawatts of wind energy on the west coast of Newfoundland and Labrador, Canada. Nujio'qonik is the Mi'kmaw name for Bay St. George, where the project is proposed. Since June 2022, the project has been undergoing environmental assessment[61] according to regulatory guidelines issued by the Government of Newfoundland and Labrador. In late 2024 10 projects on the east coast had failed to raise funding, and Prince George on the west coast has been cancelled.[62]
Chile
Chile's goal to use only clean energy by the year 2050 includes the use of green hydrogen. The EU Latin America and Caribbean Investment Facility provided a €16.5 million grant and the EIB and KfW are in the process of providing up to €100 million each to finance green hydrogen projects.[63][64]
China
In 2022 China was the leader of the global hydrogen market with an output of 33 million tons (a third of global production), of which more than 99% is made from fossil fuel, releasing CO2.[65] As of 2021, several companies have formed alliances to increase production of the fuel fifty-fold in the next six years[66]
In 2021 Sinopec aimed to generate 500,000 tonnes of green hydrogen by 2025.[67] This has since been downgraded to 120,000 tonnes.[68] Hydrogen generated from wind energy could provide a cost-effective alternative for coal-dependent regions like Inner Mongolia.[69] As part of preparations for the 2022 Winter Olympics a hydrogen electrolyser, described as the "world's largest" began operations to fuel vehicles used at the games. The electrolyser was powered by onshore wind.[70]
Egypt
Egypt has opened the door to $40 billion of investment in green hydrogen and renewable technology by signing seven memoranda of understanding with international developers in the fields. The projects located in the Suez canal economic zone will see an investment of around $12 billion at an initial pilot phase, followed by a further $29 billion, according to the country's Planning Minister, Hala Helmy el-Said. [71]
Germany invested €9 billion to construct 5 GW of electrolyzer capacity by 2030.[72]
India
Reliance Industries announced its plan to use about 3 gigawatts (GW) of solar energy to generate 400,000 tonnes of hydrogen.[73]Gautam Adani, founder of the Adani Group announced plans to invest $70 billion to become the world's largest renewable energy company, and produce the cheapest hydrogen across the globe.[74] The power ministry of India has stated that India intends to produce a cumulative 5 million tonnes of green hydrogen by 2030.[75]
In April 2022, the public sector Oil India Limited (OIL), which is headquartered in eastern Assam's Duliajan, set up India's first 99.99% pure green hydrogen pilot plant in keeping with the goal of "making the country ready for the pilot-scale production of hydrogen and its use in various applications" while "research and development efforts are ongoing for a reduction in the cost of production, storage and the transportation" of hydrogen.[76]
In January 2024, subsidies for facilities to produce nearly 412,000 metric tons/year in green hydrogen were awarded.[77] Subsidies for clean hydrogen production are much higher in the US and EU than in India.[78] The discovered price of green hydrogen in India is US$ 3.9 (INR 328) per kg as of July 2025.[79][80]
Japan
In 2023, Japan announced plans to spend US$21 billion on subsidies for delivered clean hydrogen over a 15-year period.[81]
Mauritania
Mauritania launched two major projects on green hydrogen. The NOUR Project would become one of theworld's largest hydrogen projects with 10 GWof capacity by 2030 in cooperation with Chariot company.[82] The second is the AMAN Project, which includes 12GW of wind capacity and 18GW of solar capacity to produce 1.7 million tons per annum of green hydrogen or 10 million tons per annum of green ammonia for local use and export, in cooperation with Australian company CWP Renewables.
Namibia
Namibia has commissioned a green hydrogen production project with German support.[83] The 10 billion dollar project involves the construction of wind farms and photovoltaic plants with a total capacity of 7 (GW) to produce. It aims to produce 2 million tonnes of green ammonia and hydrogen derivatives by 2030 and will create 15,000 jobs of which 3,000 will be permanent.[84]
Oman
An association of companies announced a $30 billion project in Oman, which would become one of the world's largest hydrogen facilities. Construction was to begin in 2028. By 2038 the project was to be powered by 25 GW of wind and solar energy.[85]
Portugal
In April 2021, Portugal announced plans to construct the first solar-powered plant to produce hydrogen by 2023.[86] Lisbon based energy company Galp Energia announced plans to construct an electrolyser to power its refinery by 2025.[87]
Saudi Arabia
In 2021, Saudi Arabia, as a part of the NEOM project, announced an investment of $5bn to build a green hydrogen-based ammonia plant, which would start production in 2025.[88]
Singapore
Singapore started the construction of a 600 MW hydrogen-ready powerplant that is expected to be ready by the first half of 2026.[89]
Spain
In February 2021, thirty companies announced a pioneering project to provide hydrogen bases in Spain. The project intended to supply 93 GW of solar and 67 GW of electrolysis capacity by the end of the decade.[90]
Sweden
In February 2021, the Swedish company H2 Green Steel (rebranded as Stegra in 2024) announced plans to build a large green hydrogen-based steel plant in Boden, northern Sweden.[91] The project includes a 740 MW electrolyser consisting of 37 alkaline modules of 20 MW each, supplied by thyssenkrupp nucera, making it one of the largest electrolysis installations in Europe.[92][93] Construction began in 2022, with the first steel structures erected in late 2023.[94]
Tunisia
In Tunisia, the population is concerned about the green hydrogen plant project in the Gabès region — intended for the European market — for two main reasons: the high water consumption it entails (in a region already experiencing water stress) and the degradation of the landscape.[5][95]
United Arab Emirates
In 2021, in collaboration with Expo 2020 Dubai, a pilot project was launched which is the first "industrial scale", solar-driven green hydrogen facility in the Middle East and North Africa."[96]
United Kingdom
In August 2017, EMEC, based in Orkney, Scotland, produced hydrogen gas using electricity generated from tidal energy in Orkney. This was the first time that hydrogen had been created from tidal energy anywhere in the world.[97]
In March 2021, a proposal emerged to use offshore wind in Scotland to power converted oil and gas rigs into a "green hydrogen hub" which would supply fuel to local distilleries.[98]
In June 2021, Equinor announced plans to triple UK hydrogen production.[99] In March 2022 National Grid announced a project to introduce green hydrogen into the grid with a 200 m wind turbine powering an electrolyser to produce gas for about 300 homes.[100]
In December 2023, the UK government announced a £2 billion fund would be set up to back 11 separate projects. The then Energy Secretary, Claire Coutinho, announced the funding would be invested over a 15-year period. The first allocation round would be known as HAR1.[101]Vattenfall planned to generate green hydrogen from a test offshore wind turbine near Aberdeen in 2025.[102]
United States
The federal Infrastructure Investment and Jobs Act,[103] which became law in November 2021, allocated $9.5 billion to green hydrogen initiatives.[104] In 2021, the U.S. Department of Energy (DOE) was planning the first demonstration of a hydrogen network in Texas.[105] The department had previously attempted a hydrogen project known as Hydrogen Energy California, which was terminated in 2016. Texas is considered a key part of green hydrogen projects in the country as the state is the largest domestic producer of hydrogen and has a hydrogen pipeline network.[106] In 2020, SGH2 Energy Global announced plans to use plastic and paper via plasma gasification to produce green hydrogen near Los Angeles.[107]
In 2021 then New York governor Andrew Cuomo announced a $290million investment to construct a green hydrogen fuel production facility.[108] This was cancelled in October 2024.[109] State authorities backed plans for developing fuel cells to be used in trucks and research on blending hydrogen into the gas grid.[110] In March 2022 the governors of Arkansas, Louisiana, and Oklahoma announced the creation of a hydrogen energy hub between the states.[111]Woodside announced plans for a green hydrogen production site in Ardmore, Oklahoma.[112] Further necessary investment in this facility is being reconsidered by its main investor as of Q1 2025.[113] As of June 2025 this investment is 'on hold' [114]
In October 2023, Siemens announced that it had successfully performed the first test of an industrial turbine powered by 100 per cent green hydrogen generated by a 1 megawatt electrolyser. The turbine also operates on gas and any mixture of gas and hydrogen.[116]
Government support
In 2020, the European Commission adopted a dedicated strategy on hydrogen.[117] The "European Green Hydrogen Acceleration Center" is tasked with developing a €100 billion a year green hydrogen economy by 2025.[118]
In December 2020, the United Nations together with RMI and several companies, launched Green Hydrogen Catapult, with a goal to reduce the cost of green hydrogen below US$2 per kilogram (equivalent to $50 per megawatt hour) by 2026.[119]
In 2021, with the support of the governments of Austria, China, Germany, and Italy, UN Industrial Development Organization (UNIDO) launched its Global Programme for Hydrogen in Industry.[120] Its goal is to accelerate the deployment of GH2 in industry.
In 2021, the British government published its policy document, a "Ten Point Plan for a Green Industrial Revolution," which included investing to create 5 GW of low carbon hydrogen by 2030.[121] The plan included working with industry to complete the necessary testing that would allow up to 20% blending of hydrogen into the gas distribution grid by 2023. A BEIS consultation in 2022 suggested that grid blending would only have a "limited and temporary" role due to an expected reduction in the use of natural gas.[122]
The Japanese government planned to transform the nation into a "hydrogen society".[123] Energy demand would require the government to import/produce 36 million tons of liquefied hydrogen. At the time Japan's commercial imports were projected to be 100 times less than this amount by 2030, when the use of fuel was expected to commence. Japan published a preliminary road map that called for hydrogen and related fuels to supply 10% of the power for electricity generation as well as a significant portion of the energy for uses such as shipping and steel manufacture by 2050.[124] Japan created a hydrogen highway consisting of 135 subsidized hydrogen fuels stations and planned to construct 1,000 by the end of the 2020s.[125][126]
In October 2020, the South Korean government announced its plan to introduce the Clean Hydrogen Energy Portfolio Standards (CHPS) which emphasizes the use of clean hydrogen. During the introduction of the Hydrogen Energy Portfolio Standard (HPS), it was voted on by the 2nd Hydrogen Economy Committee. In March 2021, the 3rd Hydrogen Economy Committee was held to pass a plan to introduce a clean hydrogen certification system based on incentives and obligations for clean hydrogen.[127]
Morocco, Tunisia,[128]Egypt[129] and Namibia have proposed plans to include green hydrogen as a part of their climate change agenda. Namibia is partnering with European countries such as Netherlands and Germany for feasibility studies and funding.[130]
In July 2020, the European Union unveiled the Hydrogen Strategy for a Climate-Neutral Europe. A motion backing this strategy passed the European Parliament in 2021.[131] The plan is divided into three phases.[132] From 2020 to 2024, the program aims to decarbonize existing hydrogen production. From 2024-2030 green hydrogen would be integrated into the energy system. From 2030 to 2050 large-scale deployment of hydrogen would occur. Goldman Sachs estimated hydrogen to 15% of the EU energy mix by 2050.[133]
Six European Union member states: Germany, Austria, France, the Netherlands, Belgium and Luxembourg, requested hydrogen funding be backed by legislation.[134] Many member countries have created plans to import hydrogen from other nations, especially from North Africa.[135] These plans would increase hydrogen production, but were accused of trying to export the necessary changes needed within Europe.[136] The European Union required that starting in 2021, all new gas turbines made in the bloc must be ready to burn a hydrogen–natural gas blend.[137]
In November 2020, Chile's president presented the "National Strategy for Green Hydrogen," stating he wanted Chile to become "the most efficient green hydrogen producer in the world by 2030".[138] The plan includes HyEx, a project to make solar based hydrogen for use in the mining industry.[139]
Regulations and standards
In the European Union, certified 'renewable' hydrogen, defined as produced from non-biological feedstocks, requires an emission reduction of at least 70% below the fossil fuel it is intended to replace.[140] This is distinct in the EU from 'low carbon' hydrogen, which is defined as made using fossil fuel feedstocks.[141] For it to be certified, low carbon hydrogen must achieve at least a 70% reduction in emissions compared with the grey hydrogen it replaces.[141]
In the United Kingdom, just one standard is proposed, for 'low carbon' hydrogen. Its threshold GHG emissions intensity of 20gCO2 equivalent per megajoule[142] should be easily met by renewably-powered electrolysis of water for green hydrogen production, but has been set at a level to allow for and encourage other 'low carbon' hydrogen production, principally blue hydrogen.[143] Blue hydrogen is grey hydrogen with added carbon capture and storage, which to date has not been produced with carbon capture rates in excess of 60%.[144] To meet the UK's threshold, its government has estimated that an 85% carbon capture rate would be necessary.[145]
In the United States, planned tax credit incentives for green hydrogen production are to be tied to the emissions intensity of 'clean' hydrogen produced, with greater levels of support on offer for lower greenhouse gas intensities.[146]
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↑ Ait Ousaleh, Hanane; Chanda, Macmillan; Karibe, Houda; Aitbella, Younes; Sair, Said; Faik, Abdessamad (September 2025). "Advancing thermochemical water splitting: Performance insights and material selection for scalable hydrogen technology". Renewable and Sustainable Energy Reviews. 220: 115902. Bibcode:2025RSERv.22015902A. doi:10.1016/j.rser.2025.115902.{{cite journal}}: CS1 maint: article number as page number (link)
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↑ Schrotenboer, Albert H.; Veenstra, Arjen A.T.; uit het Broek, Michiel A.J.; Ursavas, Evrim (October 2022). "A Green Hydrogen Energy System: Optimal control strategies for integrated hydrogen storage and power generation with wind energy". Renewable and Sustainable Energy Reviews. 168: 112744. arXiv:2108.00530. Bibcode:2022RSERv.16812744S. doi:10.1016/j.rser.2022.112744.{{cite journal}}: CS1 maint: article number as page number (link)
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