Green hydrogen: a strategic energy vector for achieving net-zero emissions by 2050

Abstract

Green hydrogen is evolving as a critical element in the global transition to a low-carbon energy system. Green hydrogen is generated via water electrolysis powered by renewable electricity, providing a clean and sustainable alternative to fossil-based energy sources. Unlike grey or blue hydrogen, which are derived from natural gas and emit CO₂, green hydrogen is virtually emission-free, making it a key enabler of deep decarbonization across multiple sectors. One of the most significant advantages of green hydrogen is its versatility. It serves as a versatile energy carrier, functioning as a zero-emission fuel for transportation, a feedstock for various industrial processes, and a medium for the storage and distribution of renewable energy. Hard-to-abate sectors like steelmaking, chemicals, and heavy transport stand to benefit greatly from hydrogen's clean-burning properties. Moreover, green hydrogen helps to stabilise energy systems by storing excess renewable electricity, which can then be converted back into power when needed. While current production costs are high, ongoing innovation and scaling of renewable infrastructure are expected to make green hydrogen increasingly cost-competitive. The expected reduction in green hydrogen production costs from $4–6 per kg today to approximately $1–2 per kg by 2030 will be driven by the scaling of electrolysis technologies, declining renewable electricity prices, and supportive policy frameworks. As the world seeks to meet climate goals, green hydrogen will play a crucial role in building a cleaner and more resilient energy future.

---

Pawan Kumar Pathak

Pawan Kumar Pathak is currently working as an Assistant Professor in the School of Automation at Banasthali Vidyapith (Rajasthan, India). He completed his BTech in Electrical and Electronics Engineering from GBTU, Lucknow (India) in 2013; ME (Hons.) in Power Electronics from SGSITS, Indore, affiliated to RGPV Bhopal (India), in 2015; and PhD in Electrical Engineering from Banasthali Vidyapith, India, in 2021. He has more than 10 years of teaching and research experience and has published more than 60 research papers in journals and conferences of repute. His research interests include renewable energy, power systems, electric vehicles, optimal control, non-linear systems, cyber-physical power systems, intelligent control and metaheuristics. He was the recipient of the IEEE Best Paper Award in 2022.

Anil Kumar Yadav

Anil Kumar Yadav (Senior Member, IEEE) is currently working as an Assistant Professor in the Department of Instrumentation & Control Engineering, Dr B. R. Ambedkar National Institute of Technology, Jalandhar, Punjab, India. He earned his BTech in Electronics and Instrumentation Engineering from Uttar Pradesh Technical University, Lucknow (India) in 2007 and MTech and PhD degrees in Instrumentation and Control Engineering from the University of Delhi, Delhi (India), in 2010 and 2017, respectively. He is a Member of the Institution of Engineers (India). He has 15 years of teaching and research experience and has published more than 85 research papers in journals and conferences of repute. His research interests include renewable energy, micro-grids, AI techniques, electric vehicles, and nonlinear and intelligent control.

Innocent Kamwa

Innocent Kamwa (Fellow, IEEE) received his BS and PhD degrees in Electrical Engineering from Laval University, Québec City, in 1985 and 1989, respectively. He has been a Research Scientist and a Registered Professional Engineer at the Hydro-Quebec Research Institute since 1988, specializing in system dynamics, power grid control, and electric machines. After leading the System Automation and Control Research and Development Program for years, he became the Chief Scientist for smart grids, the Head of power systems and mathematics, and the Acting Scientific Director of IREQ in 2016. He was an Adjunct professor at Laval University and McGill University. He currently heads the Power Systems Simulation and Evolution Division, overseeing the Hydro-Quebec Network Simulation Centre, which is known worldwide. He became a fellow of the IEEE in 2005 for ‘‘innovations in power grid control’’ and a fellow of the Canadian Academy of Engineering. His honors include four IEEE Power Engineering Best Paper Prizes, three IEEE Power Engineering Outstanding Working Group awards, and the 2013 IEEE Power Engineering Society Distinguished Service award. He was the Editor-in-Chief of IET Generation, Transmission and Distribution till 2022 and is presently acting as the Editor-in-Chief of the IEEE Power and Energy magazine.

---

1. Introduction

In the global quest to tackle climate change and decarbonise the economy, a colourless, odourless molecule is increasingly at the centre of attention: hydrogen. Among its different types, green hydrogen stands out as a clean, renewable, and scalable energy carrier with the potential to deeply transform sectors that have long resisted electrification such as heavy industry, long-haul transport, and chemical production. As the world edges closer to the climate tipping point, green hydrogen is emerging not only as a technological opportunity but also as a strategic necessity in the race to achieve net-zero emissions by 2050.^1–3 The worldwide use of hydrogen till 2023 is depicted in Fig. 1, while the expected hydrogen end-use in metric tons (MT) between 2030 to 2050 by region is revealed in Fig. 2.

Fig. 1 Hydrogen use in 2023 by region.²

Fig. 2 Expected hydrogen use in 2030–2050 by region.³

Hydrogen itself is not a new fuel. It has been used for decades in industries like oil refining and fertiliser production. However, traditional methods of producing hydrogen, typically through steam methane reforming (SMR), release large quantities of CO₂. This process generates what is known as grey hydrogen. Unlike conventional methods, green hydrogen is generated through the electrolysis of water, where renewable electricity, such as that from wind, solar, or hydropower, is used to separate water (H₂O) into hydrogen (H₂) and oxygen (O₂).⁴ Since this process relies solely on clean energy and produces zero emissions, green hydrogen is considered a fully carbon-free energy source from its creation to end use. The only by-product is water, closing the loop in the most environmentally benign way possible.⁵

The global energy system is undergoing a rapid transformation, driven by policy commitments, economic pressures, and a growing recognition that carbon neutrality is no longer optional but urgent.^6–9 Yet, even as renewable electricity expands, some sectors remain hard to abate. Industries like steel, cement, shipping, and aviation rely on high-temperature processes or dense fuels that electricity alone cannot economically or technically replace. This is where green hydrogen fits in as a versatile decarbonization tool. It can serve as:

• A direct fuel for high-temperature industrial processes.

• A feedstock in chemical manufacturing (e.g., ammonia and methanol).

• A storage medium for excess renewable electricity.

• A zero-emission fuel for fuel-cell vehicles in freight and public transport.¹⁰

According to the International Energy Agency (IEA), green hydrogen can meet up to 10% of the global energy needs by 2050, assuming aggressive deployment policies and investments.⁶ Green hydrogen is expected to become increasingly cost-competitive as electrolyser technology improves, renewable energy prices fall, and carbon pricing becomes stricter.^11–13 Despite its promise, green hydrogen faces significant technical and economic hurdles on the road to large-scale adoption. Electrolysis is still energy-intensive and expensive, with current production costs ranging from $3 to $7 per kilogram, depending heavily on electricity prices and electrolyser efficiency.¹⁴ Comparatively, grey hydrogen costs $1–$2 per kilogram. However, the tide is turning. With the global electrolyser capacity expected to increase more than 100-fold by 2030 and with nations like Germany, Japan, and Australia investing billions in hydrogen roadmaps, costs are forecasted to fall below $2 per kg by 2030—the so-called “tipping point” for economic viability.¹⁴ In parallel, advances in solid oxide and proton exchange membrane (PEM) electrolysers, modular hydrogen refuelling stations, and green hydrogen storage (e.g., in salt caverns or metal hydrides) are addressing both infrastructural and technical barriers.^15–17 Importantly, green hydrogen also integrates well with grid balancing and energy storage in renewable-heavy systems, offering a flexible complement to intermittent sources like solar and wind.^18,19

Governments worldwide are recognising green hydrogen as a strategic asset. The European Union's hydrogen roadmap targets the deployment of 40 gigawatts of electrolyser capacity by 2030, signalling a strong commitment to scaling green hydrogen.¹⁴ Meanwhile, the U.S. Inflation Reduction Act (IRA) supports clean hydrogen development through substantial tax incentives, aimed at boosting domestic production and investment.¹⁴ Meanwhile, over 40 countries have announced national hydrogen strategies, with funding commitments surpassing $500 billion by 2030.⁹ Private sector interest is also accelerating. Major energy players like Shell, BP, and Siemens are investing in pilot projects, and green hydrogen hubs are under construction across the globe—from the Middle East to Scandinavia to Southeast Asia. These initiatives mark a shift from niche experimentation to mainstream infrastructure development.

As we approach a pivotal decade for climate action, green hydrogen is no longer a distant concept—it is a central pillar in the strategy to decarbonise the global economy. Its potential to replace fossil fuels in hard-to-electrify sectors makes it one of the most promising candidates to help us reach net zero by 2050. The journey will not be easy, but with accelerating innovation, bold policies, and strategic investment, green hydrogen could very well become the fuel of the future—clean, powerful, and essential.

2. Hydrogen—from hype to hope: What's driving the clean energy surge?

Hydrogen has long been heralded as a promising energy carrier, with the potential to decarbonise key sectors and support the global transition toward sustainable energy systems. The concept of the “hydrogen economy” dates back to the 1970s, but its journey has been characterised by cycles of heightened optimism (hype) followed by periods of stagnation. Understanding the historical and contemporary drivers of hydrogen's development offers critical insights into its prospects and the realistic scope of its applications.

2.1. Historical drivers and early hype

The first wave of hydrogen enthusiasm emerged during the 1970s oil crisis. Concerns over energy security and the volatility of fossil fuel prices drove interest in alternative energy sources. Hydrogen, with its high energy content per unit mass and the ability to be produced from water via electrolysis, appeared to offer a clean, inexhaustible solution.^1,4 However, the lack of enabling technologies, such as efficient fuel cells and viable storage solutions, hindered practical deployment.¹⁹ Additionally, the absence of strong policy frameworks and low fossil fuel prices during the 1980s contributed to a decline in momentum. The second major wave occurred in the early 2000s, spurred by advancements in fuel cell technology and growing awareness of climate change. Automakers like Toyota and Honda began developing hydrogen fuel cell vehicles (HFCVs), while governments, especially in Japan and Europe, invested in pilot infrastructure. Despite this progress, the cost of hydrogen production, the scarcity of refuelling stations, and the improving performance of battery electric vehicles (BEVs) again tempered expectations.

2.2. Current drivers and renewed hope

In recent years, the hydrogen sector has gained renewed traction, driven by a confluence of technological, economic, and policy-related factors. Decarbonization imperatives are now stronger than ever owing to binding climate commitments like the Paris Agreement. Hydrogen is uniquely positioned to address emissions in “hard-to-abate” sectors such as heavy industry (e.g., steel, cement, and chemicals), long-haul transportation (e.g., trucking, shipping, and aviation), and seasonal energy storage for power grids.^20,21 Technological advancements have significantly improved electrolyser efficiencies and reduced capital costs. The emergence of green hydrogen, produced via electrolysis powered by renewable electricity, aligns hydrogen production with net-zero targets.¹ Simultaneously, the rise of blue hydrogen offers a transitional pathway. Policies are also a critical current driver. The European Union, South Korea, Japan, the United States and Australia have launched comprehensive hydrogen strategies with targets, subsidies, and investment frameworks.³ The U.S. IRA, for instance, includes substantial incentives for clean hydrogen production. Furthermore, private sector interest has surged, with global investment commitments exceeding hundreds of billions of dollars.¹³ While hydrogen's history is marked by cycles of overpromising and underdelivering, current developments are underpinned by more robust technological maturity, a clearer policy direction, and a sharper focus on specific use-cases. The “hype” is now tempered with realism, and the “hope” is supported by actionable roadmaps. The success of hydrogen will depend not on replacing all fossil fuels indiscriminately but on integrating it strategically where it is most effective, making it not a silver bullet, but a vital piece of the decarbonization puzzle.

3. Green hydrogen as a strategic vector for industrial, aviation, and maritime decarbonization

As global climate targets become increasingly stringent, particularly under frameworks such as the Paris Agreement and national net-zero commitments, there is a growing imperative to decarbonise “hard-to-abate” sectors. Among the most challenging of these are heavy industry, aviation, and shipping sectors, characterised by high energy demands, reliance on fossil fuels, and a limited electrification potential.^20,21 Green hydrogen is emerging as a critical enabler of deep decarbonization in these domains.

3.1. Green hydrogen production and characteristics

Unlike grey or blue hydrogen, which are derived from natural gas with or without carbon capture and storage (CCS), green hydrogen is entirely emission-free at the point of production. Grey hydrogen currently accounts for 70–75% of the global hydrogen production, primarily derived from fossil fuels, contributing nearly 900 million tons of CO₂ emissions annually. In contrast, green hydrogen, though currently under 1% of the total production, offers a zero-emission alternative when powered by renewable electricity. Although energy-intensive, ongoing advancements in electrolyser technology, including proton exchange membrane (PEM) and solid oxide electrolysers, are improving system efficiencies and reducing capital costs.¹¹ Different types of hydrogen based on the environmental impact are pictorially depicted in Fig. 3. The green hydrogen production method and detailed major application areas are revealed in Fig. 4 and 5, respectively.

Fig. 3 Hydrogen production type based on the environmental impact.

Fig. 4 Green hydrogen: production, applications, and challenges.

Fig. 5 Major application areas of green hydrogen.

3.2. Industrial decarbonization

The industrial sector accounts for nearly 30% of the global CO₂ emissions, with steel, cement, and chemical manufacturing being the major contributors.²⁰ Green hydrogen offers a technically viable alternative to fossil-based feedstock and process fuels.²¹ For instance, in steelmaking, green hydrogen can replace coking coal in direct reduced iron (DRI) processes, enabling near-zero emission steel production.

In ammonia and methanol synthesis, hydrogen serves as a key feedstock, traditionally sourced from SMR; transitioning to green hydrogen can significantly reduce lifecycle emissions. Notable pilot projects include the HYBRIT initiative in Sweden, which produced the world's first fossil-free steel using green hydrogen, and Yara's green ammonia project in Norway, which utilises electrolytic hydrogen for sustainable fertiliser production. Furthermore, H₂ Green Steel (Sweden) is a commercial-scale initiative aiming to produce 5 MTs of green steel annually by 2030 using green hydrogen, with operations starting in 2025. Moreover, the NEOM Green Hydrogen Project (Saudi Arabia) is one of the world's largest green hydrogen ventures, targeting 600 tonnes of green hydrogen per day using 4 GW of wind and solar energy to be converted into green ammonia for global export by 2026.

3.3. Aviation applications

Aviation contributes to 2–3% of the global CO₂ emissions, and its reliance on high-energy-density fuels makes direct electrification infeasible for long-haul flights. Green hydrogen can address this challenge in two primary ways: as a fuel for hydrogen combustion engines or fuel cells in regional aircraft and as a feedstock for synthetic aviation fuels (e-fuels) such as e-kerosene.¹ These synthetic fuels, produced via the Fischer–Tropsch process by combining green hydrogen with captured CO₂, are compatible with the existing aircraft engines and infrastructure.¹ Companies like Zero Avia and Airbus are actively exploring hydrogen propulsion systems, while fuel consortia are scaling up the pilot production of synthetic fuels.

3.4. Shipping sector potential

Maritime transport accounts for roughly 3% of the global greenhouse gas emissions and is heavily dependent on heavy fuel oil.^15,16 Green hydrogen derivatives, such as green ammonia, methanol, and liquefied hydrogen, offer scalable, low-carbon marine fuel alternatives. Green ammonia is attractive owing to its high energy density and established handling infrastructure. Engine manufacturers are developing dual-fuel and ammonia-compatible propulsion systems, while major ports and shipping lines are investing in bunkering infrastructure to support a green hydrogen supply chain.¹⁶

Green hydrogen is not a one-size-fit-all solution but plays a pivotal role in decarbonising sectors that lack viable electrification alternatives. Its versatility as a clean fuel and a chemical feedstock makes it indispensable for achieving net-zero emissions in industry, aviation, and shipping. Scaling up production, reducing costs, and developing the global infrastructure will be the key to unlocking its full potential and transitioning toward a truly sustainable energy future.

4. Global assessment of clean hydrogen supply potential

The global push for deep decarbonization has placed clean hydrogen at the centre of national and international energy strategies. Defined broadly as hydrogen produced with minimal or zero emissions, green hydrogen primarily presents a versatile solution for decarbonising hard-to-abate sectors.²⁰ However, the viability of clean hydrogen production is highly dependent on geographic, technological, and economic factors. This makes a region-specific assessment critical to identifying optimal global supply opportunities. The expected clean hydrogen production technology in 2030–2050 is revealed in Fig. 6.⁹

Fig. 6 Expected clean hydrogen production technology in 2030–2050.⁹

4.1. Resource availability and regional potential

Green hydrogen production is constrained by the availability of low-cost, high-capacity renewable energy resources. Countries with abundant solar and wind potential are naturally positioned to lead. For example:

• Australia boasts vast solar irradiance and onshore/offshore wind resources, enabling gigawatt-scale hydrogen projects such as the Asian Renewable Energy Hub.

• Chile, particularly in the Atacama Desert and Patagonia, offers excellent solar and wind synergy, with the competitive levelized costs of hydrogen (LCOH) projected below $1.50 per kg by 2030.

• The Middle East and North Africa region, especially Saudi Arabia and Morocco, is leveraging its solar advantage to develop large-scale export-oriented hydrogen production (e.g., NEOM's green hydrogen project).

Blue hydrogen potential, by contrast, depends on access to natural gas reserves and geological formations suitable for long-term CO₂ storage. Countries like the United States, Russia, Canada, and Norway possess both, making them prime candidates. However, the true climate value of blue hydrogen hinges on achieving >90% CO₂ capture rates and minimising upstream methane leakage.

4.2. Infrastructure and market proximity

Supply potential is enhanced by infrastructure readiness, particularly in power grids, ports, gas pipelines, and water access.²² Europe, though constrained in domestic renewable resources compared to its hydrogen demand, is investing in import corridors from North Africa and the Middle East, supported by its Trans-European Networks for Energy (TEN-E) and the REPowerEU strategy. Japan and South Korea, with high hydrogen ambitions but limited domestic production capacity, are targeting long-term imports from Australia, the UAE, and Latin America. These partnerships involve not only gaseous hydrogen but also hydrogen carriers such as ammonia, liquid organic hydrogen carriers (LOHCs), and synthetic fuels.

4.3. Policy, investment, and technological readiness

Clean hydrogen scalability depends on enabling policy frameworks. The U.S. IRA provides generous production tax credits (up to $3 per kg), potentially making the U.S. a global leader. The EU Hydrogen Bank and Japan's Strategic Energy Plan further signal long-term demand stability and market pull. Technological maturity in electrolysers, CCS, and hydrogen storage also influences a region's competitiveness. For example, China leads in the electrolyser manufacturing scale, while Norway and Canada are advancing CCS-linked hydrogen hubs. Clean hydrogen supply opportunities are inherently global but highly differentiated. Regions with strong renewable or fossil resources, combined with supportive infrastructure, policy, and investment environments, are best placed to become major hydrogen exporters or self-sufficient hubs. A coordinated international approach linking resource-rich producers with demand-heavy industrial economies will be essential to realising hydrogen's full potential as a decarbonization vector across sectors and borders.

5. Breaking barriers in scaling green hydrogen

Green hydrogen holds significant promise as a cornerstone for global decarbonization. Its potential to decarbonise hard-to-electrify sectors such as heavy industry, aviation, and shipping positions it as a key energy vector in the transition to net-zero emissions. However, the widespread adoption of green hydrogen faces several technical, economic, and infrastructural bottlenecks that must be addressed to scale production sustainably and cost-effectively.

5.1. High production costs and electrolyser efficiency

One of the primary challenges in green hydrogen production is the current high cost of electrolysers and the relatively low efficiency of water splitting technologies. Electrolysers, mainly PEM, alkaline, and solid oxide electrolysers (SOE), consume significant amounts of electricity, and capital expenditures remain high due to material costs (e.g., platinum group metals in PEMs). To overcome this bottleneck, research has been focused on improving electrolyser durability, reducing precious metal usage through alternative catalysts, and scaling manufacturing to achieve economies of scale. Innovations such as advanced membrane materials and modular electrolyser designs are expected to drive down both capital and operational costs. Furthermore, integration with intermittent renewable sources requires electrolysers capable of flexible operation without efficiency losses or degradation.

5.2. Renewable energy integration and grid constraints

Green hydrogen's environmental advantage hinges on its use of renewable electricity. However, large-scale hydrogen production demands an enormous and continuous renewable power supply, which presents a bottleneck given current grid limitations and renewable capacity constraints. Renewable energy intermittency and curtailment issues also affect electrolyser utilisation rates, impacting the overall cost-effectiveness.²² Overcoming this requires the strategic co-location of electrolysers with renewable power plants, investment in grid upgrades, and the deployment of energy storage solutions to stabilise the power supply.¹⁸ Hybrid systems combining solar, wind, and storage can increase electrolyser capacity factors. Moreover, power purchase agreements (PPAs) and green tariffs can help secure affordable, dedicated renewable electricity for hydrogen projects.

5.3. Water resource management

Electrolysis requires high-purity water, typically deionised, with significant quantities consumed per kilogram of hydrogen produced (∼9 litres per kg H₂). Water scarcity in regions with abundant renewable resources (e.g., deserts for solar) can constrain green hydrogen scalability. Additionally, desalination plants may be needed to supply purified water, adding to capital and operational expenses. Addressing this bottleneck involves improving water efficiency in electrolysis and integrating water recycling technologies. Coupling hydrogen plants with renewable-powered desalination can provide a sustainable water supply. Moreover, using alternative water sources such as treated wastewater is an area of ongoing research.

5.4. Supply chain and infrastructure development

Green hydrogen production faces challenges in supply chain logistics and infrastructure. The production-to-demand chain requires robust hydrogen transport, storage, and distribution networks, which are currently underdeveloped.¹⁹ Hydrogen's low volumetric energy density necessitates compression, liquefaction, or conversion to carriers (e.g., ammonia and LOHCs), each adding to the complexity and cost. Overcoming these bottlenecks demands coordinated infrastructure investment, standardisation, and the development of safe, efficient transport technologies. Public-private partnerships and supportive regulatory frameworks can accelerate the build-out of hydrogen refuelling stations, pipelines, and export terminals.

While green hydrogen presents transformative potential for decarbonization, realising this promise requires overcoming multifaceted bottlenecks in electrolyser technology, renewable energy integration, water management, and infrastructure. Concerted efforts in innovation, policy support, and strategic investment are essential to reduce costs, increase operational flexibility, and build robust supply chains. By addressing these challenges, green hydrogen can transition from small pilot projects to a scalable, competitive clean energy solution.

6. Global dynamics shaping the clean hydrogen market

The global clean hydrogen market is rapidly transitioning from a concept to the reality, driven by escalating climate commitments, technological advancements, and coordinated policy frameworks. Clean hydrogen, encompassing green hydrogen and blue hydrogen with CCS, is increasingly recognised as a critical vector for deep decarbonization across multiple sectors. The emergence of a robust global market for clean hydrogen entails the development of international production hubs, supply chains, standardised regulatory frameworks, and demand aggregation mechanisms.

6.1. Drivers of market emergence

The foundation of the clean hydrogen market lies in the urgent global imperative to reduce greenhouse gas emissions. National and regional governments have catalysed market formation through strategic hydrogen roadmaps, funding initiatives, and policy incentives. For instance, the European Union's Hydrogen Strategy emphasises the development of a fully integrated hydrogen value chain by 2030, including domestic production and large-scale imports.^3,9 Similarly, Japan and South Korea have prioritised hydrogen imports to compensate for their limited domestic production potential.⁹ The U.S. IRA offers production tax credits for clean hydrogen, signalling strong market support.⁹

6.2. Production hubs and supply chains

The establishment of geographically strategic production hubs is a key pillar. Countries endowed with abundant renewable resources (e.g., Australia, Chile, and Saudi Arabia) are emerging as export powerhouses. Simultaneously, natural-gas-rich nations with a CCS capacity (e.g., the U.S., Norway, and Canada) are positioned to supply blue hydrogen. The development of these hubs requires large-scale electrolyser installations, renewable energy capacity expansion, and carbon capture infrastructure. Transporting hydrogen or its derivatives from production sites to demand centres is a complex logistical challenge. Direct hydrogen pipelines, liquefied hydrogen shipping, and chemical carriers such as ammonia or LOHCs are under development and pilot demonstration. The standardisation of transport protocols, safety regulations, and cross-border trade agreements will be essential to enable market liquidity and minimise costs.

6.3. Market integration and demand aggregation

A global clean hydrogen market demands integration across production, transport, storage, and end-use sectors. Cross-border trading platforms and certification schemes, such as guarantees of origin for renewable hydrogen, are emerging to provide transparency and build consumer trust. Hydrogen hubs and clusters, where multiple stakeholders collaborate across the value chain, enhance economies of scale and accelerate adoption. Industrial consumers are aggregating demand, motivated by regulatory pressure and corporate sustainability commitments. In parallel, infrastructure investment in refuelling stations for hydrogen fuel cell vehicles and ports for ammonia bunkering supports the transport sector transition. The convergence of supply-side scalability with diversified demand portfolios is critical for market maturation.

6.4. Challenges and outlook

Despite the positive momentum, challenges remain. High production costs relative to fossil-based alternatives, infrastructure deficits, and technology readiness gaps in transport and storage constrain near-term expansion. The market also requires robust policies that foster long-term price signals and risk mitigation to attract private capital.

Nevertheless, the emergence of a global clean hydrogen market is underway, marked by unprecedented international cooperation, technological innovation, and strategic investments. This evolving market has the potential to become a linchpin in the global energy transition, enabling emission reductions in sectors where direct electrification is impractical and fostering economic development through new industrial value chains.

7. Conclusion

Green hydrogen offers a clean, versatile solution for decarbonising sectors beyond the reach of electrification. As technologies mature and investments grow, it positions as a critical enabler in the transition toward net-zero emissions by 2050. We must consider the following measures for our emission-free future:

Short-term actions (next 1–5 years)

• Scale up electrolyser manufacturing to reduce costs and improve efficiency through technological innovation.

• Increase renewable energy capacity dedicated to green hydrogen production to secure low-cost, zero-carbon electricity.

• Develop pilot and demonstration projects across key sectors like industry, transport, and power generation to validate commercial viability.

• Establish supportive policy frameworks, including subsidies, tax incentives, and clear regulatory guidelines, to attract investment.

• Build the initial hydrogen infrastructure such as refuelling stations, storage facilities, and pipelines in strategic regions.

• Promote international cooperation on standards, certifications, and cross-border trade agreements for green hydrogen.

Near-future actions (next 5–15 years)

• Expand large-scale green hydrogen production hubs in resource-rich regions with integrated renewable generation.

• Develop comprehensive hydrogen transport and distribution networks, including pipelines, shipping (liquefied hydrogen and ammonia), and port facilities.

• Integrate green hydrogen into hard-to-abate sectors such as steelmaking, aviation, shipping, and heavy-duty transport at the commercial scale.

• Advance research on storage solutions and hydrogen carriers to improve safety, efficiency, and cost-effectiveness.

• Implement market mechanisms and trading platforms to facilitate global hydrogen commerce and price transparency.

• Foster public-private partnerships to mobilise capital and share risks in infrastructure and technology deployment.

• Strengthen workforce skills and supply chains to support hydrogen technology manufacturing, installation, and maintenance globally.

Conflicts of interest

There are no conflicts to declare.

Data availability

No primary research results, software or code have been included, and no new data were generated or analysed as part of this perspective.

References

1. P. K. Pathak, A. K. Yadav and S. Padmanaban, Transition toward emission-free energy systems by 2050: Potential role of hydrogen, Int. J. Hydrog. Energy, 2023, 48(26), 9921–9927.
2. A report published by Hydrogen One in 2025, https://hydrogenonecapitalgrowthplc.com/.
3. A report published by Hydrogen Council in 2021, https://hydrogencouncil.com/wp-content/uploads/2021/11/Hydrogen-for-Net-Zero.pdf.
4. V. A. Panchenko, Y. V. Daus, A. A. Kovalev, I. V. Yudaev and Y. V. Litti, Prospects for the production of green hydrogen: Review of countries with high potential, Int. J. Hydrogen Energy, 2023, 48(12), 4551–4571.
5. B. S. Zainal, P. J. Ker, H. Mohamed, H. C. Ong, I. M. R. Fattah, S. A. Rahman and T. I. Mahlia, Recent advancement and assessment of green hydrogen production technologies, Renew. Sustain. Energy Rev., 2024, 189, 113941.
6. A report published by international energy agency in 2021 on Net Zero by 2050, https://www.iea.org/reports/net-zero-by-2050.
7. A. Odenweller, F. Ueckerdt, G. F. Nemet, M. Jensterle and G. Luderer, Probabilistic feasibility space of scaling up green hydrogen supply, Nat. Energy, 2022, 7(9), 854–865.
8. A. H. Azadnia, C. McDaid, A. M. Andwari and S. E. Hosseini, Green hydrogen supply chain risk analysis: A european hard-to-abate sectors perspective, Renew. Sustain. Energy Rev., 2023, 182, 113371.
9. A report published by Deloitte on Green hydrogen: Energizing the path to net zero in 2023, https://www.deloitte.com/global/en/issues/climate/green-hydrogen.html.
10. P. K. Pathak, A. K. Yadav, S. Padmanaban, P. A. Alvi and I. Kamwa, Fuel cell-based topologies and multi-input DC–DC power converters for hybrid electric vehicles: A comprehensive review, IET Gener., Transm. Distrib., 2022, 16(11), 2111–2139.
11. X. Li, C. J. Raorane, C. Xia, Y. Wu, T. K. N. Tran and T. Khademi, Latest approaches on green hydrogen as a potential source of renewable energy towards sustainable energy: Spotlighting of recent innovations, challenges, and future insights, Fuel, 2023, 334, 126684.
12. S. Wei, R. Sacchi, A. Tukker, S. Suh and B. Steubing, Future environmental impacts of global hydrogen production, Energy Environ. Sci., 2024, 17(6), 2157–2172.
13. A report published by International Energy Agency on The Global Hydrogen Review (2024), https://www.iea.org/reports/global-hydrogen-review-2024.
14. A. M. Oliveira, R. R. Beswick and Y. Yan, A green hydrogen economy for a renewable energy society, Curr. Opin. Chem. Eng., 2021, 33, 100701.
15. T. J. Wallington, M. Woody, G. M. Lewis, G. A. Keoleian, E. J. Adler, J. R. Martins and M. D. Collette, Green hydrogen pathways, energy efficiencies, and intensities for ground, air, and marine transportation, Joule, 2024, 8(8), 2190–2207.
16. A. Perna, E. Jannelli, S. Di Micco, F. Romano and M. Minutillo, Designing, sizing and economic feasibility of a green hydrogen supply chain for maritime transportation, Energy Convers. Manag., 2023, 278, 116702.
17. Y. Li and F. Taghizadeh-Hesary, The economic feasibility of green hydrogen and fuel cell electric vehicles for road transport in China, Energy Policy, 2022, 160, 112703.
18. S. V. Sah, V. Prakash, P. K. Pathak and A. K. Yadav, Intelligent Frequency Control Mechanism of Renewable Shared Interconnected Power System with Communication Delay, in 2024 IEEE 11th Power India International Conference (PIICON), IEEE, 2024, pp. 1–6.
19. N. Ma, W. Zhao, W. Wang, X. Li and H. Zhou, Large scale of green hydrogen storage: Opportunities and challenges, Int. J. Hydrogen Energy, 2024, 50, 379–396.
20. M. Jayachandran, R. K. Gatla, A. Flah, A. H. Milyani, H. M. Milyani, V. Blazek and H. Kraiem, Challenges and opportunities in green hydrogen adoption for decarbonizing hard-to-abate industries: A comprehensive review, IEEE Access, 2024, 12, 23363–23388.
21. X. Yang, C. P. Nielsen, S. Song and M. B. McElroy, Breaking the hard-to-abate bottleneck in China's path to carbon neutrality with clean hydrogen, Nat. Energy, 2022, 7(10), 955–965.
22. E. Sahraie, I. Kamwa, A. Moeini and S. M. Mohseni-Bonab, Synergy-based hydrogen pricing in hydrogen-integrated electric power system: Sensitivity analysis, Int. J. Hydrogen Energy, 2024, 93, 948–962.

---