By Dr. Garima Rana
As global efforts to cut carbon emissions intensify, hydrogen is emerging as a central player in the transition toward cleaner energy. Often described as a “fuel of the future,” hydrogen offers a potential pathway to decarbonise industries and transport systems that are otherwise difficult to electrify. But as interest grows, so too do questions about how hydrogen is produced—and whether it can truly deliver on its environmental promise.
Hydrogen is already widely used in industrial processes, but the vast majority is produced through methods that rely heavily on fossil fuels. The process most commonly used today, known as steam methane reforming, emits large quantities of carbon dioxide. This form of hydrogen, often referred to as “gray hydrogen,” is inexpensive but environmentally damaging.
A slightly cleaner version, called “blue hydrogen,” involves capturing and storing the carbon emissions from the same production process. However, this approach is still reliant on fossil fuels and depends on costly and complex carbon capture technology.
The cleanest option, “green hydrogen,” is produced through electrolysis—a method that uses electricity to split water into hydrogen and oxygen. When powered by renewable energy sources such as wind or solar, this process generates no direct emissions. Yet green hydrogen remains expensive and accounts for a small share of global hydrogen production.
Despite these challenges, hydrogen has gained momentum in recent years. Governments and private investors alike are announcing large-scale projects aimed at producing hydrogen through low-emission methods. Some are positioning hydrogen not only as a fuel for domestic industries but also as an export commodity for a future global clean energy market.
At the same time, public policies are evolving to support the development of hydrogen technologies. Several regions have introduced subsidies, tax credits, and research funding in an effort to bring down production costs and accelerate deployment. Analysts say that such measures could help bring the cost of green hydrogen closer to that of its fossil-based counterparts within the next decade.
Still, experts caution that producing hydrogen cleanly and at scale is far from straightforward. The electrolysis process requires significant amounts of electricity and clean water. For every kilogram of hydrogen produced, approximately nine liters of water are needed. In regions where water is scarce or energy grids are already strained, these demands could pose additional challenges.
Transporting and storing hydrogen also presents logistical hurdles. Hydrogen is the smallest molecule in the universe, making it difficult to contain. Existing pipeline infrastructure is limited and not always compatible with hydrogen, while building new networks would require substantial investment. Some researchers are exploring alternative options, such as converting hydrogen into ammonia for easier shipping and storage.
Efficiency is another concern. Hydrogen is less energy-dense than conventional fuels and can be wasteful when compared to direct electrification. In some cases, converting electricity into hydrogen and then back into power can lead to energy losses of up to 50 percent. As a result, many experts suggest that hydrogen should be reserved for applications where batteries or other electric technologies are not viable.
Such applications include long-haul freight, aviation, shipping, and high-temperature industrial processes. In these sectors, hydrogen could provide a much-needed solution to reduce emissions. Hydrogen is also being considered for power generation and energy storage, particularly as a backup to intermittent renewables like wind and solar.
Despite its limitations, the appeal of hydrogen remains strong. Its versatility, abundance, and emissions-free combustion make it an attractive tool in the broader effort to reach climate targets. Advocates argue that, with the right investments and technological breakthroughs, hydrogen could play a major role in a cleaner energy future.
For now, the hydrogen economy is still in its early stages. Many announced projects are in the planning or pilot phase, and costs remain a significant barrier. Nevertheless, observers say the coming years will be critical in determining hydrogen’s role in global energy systems.
If clean production methods can be scaled up and infrastructure barriers overcome, hydrogen could transition from an industrial workhorse to a key pillar of a low-carbon world. But without sustained investment and clear policy direction, its potential may remain just that—a potential.
