Hydrogen energy is often touted as a potential green alternative to fossil fuels like oil, coal and gas, as it produces water vapour and heat instead of greenhouse gases.
Countries around the world are investing heavily in hydrogen. China, for example, seeks to have 50,000 hydrogen-powered vehicles on the road by 2025, while the European Union aims to produce 10 million tons of renewable hydrogen by 2030.
But with billions being spent on hydrogen technologies, what exactly is hydrogen energy, and is it truly the green alternative the world needs to decarbonise?
What is hydrogen energy?
Hydrogen is considered a clean source of energy because when it is burned as a fuel, it only produces heat and water - instead of the planet-heating greenhouse gas emissions that come from fossil fuels such as oil and gas.
Hydrogen is already used in many industries, with more than half of the hydrogen produced globally used to produce ammonia, found in products such as fertiliser and plastic. Some 25 per cent is used in refining oil and around 10 per cent in methanol production.
Is hydrogen energy renewable?
Because hydrogen does not exist on its own, it needs to be extracted from other chemicals. How that extraction is carried out determines whether it is genuinely renewable.
The cleanest form of production is “green” hydrogen made using renewable electricity like solar or wind power. Hydrogen is split from water using electrolysis with no harmful byproducts.
However, despite its green potential, nearly all hydrogen (98 per cent) is produced from fossils fuels. Known as “grey” hydrogen, carbon dioxide is released into the atmosphere during production, making it the most damaging form of the fuel.
So-called “blue” hydrogen includes carbon capture to abate these emissions, but makes up only about 1 per cent of production.
How much of current hydrogen production is green?
Green hydrogen makes up for less than 1 per cent of global hydrogen output, according to the International Renewable Energy Agency (IRENA).
Across the EU, for example, 96 per cent of all hydrogen used in 2022 was made from natural gas.
Experts say this is partly because green hydrogen production is more costly to make. These costs are passed onto consumers - green hydrogen costs between US$4 and US$6 per kg, two to three times more than grey hydrogen, according to IRENA.
Where is green hydrogen currently being used?
Green hydrogen is mainly limited to transportation, and is mostly used in road vehicles.
There are more than 72,000 hydrogen fuel cell vehicles on the world’s roads today, mainly in China, the United States, South Korea, Japan and Germany.
However, the lack of infrastructure makes hydrogen fuel less accessible than traditional gasoline. For example, the United States, one of the largest hydrogen producers, only has 59 hydrogen refuelling stations for vehicles, mostly in California.
China has 354 operational hydrogen refuelling stations - the largest number in the world – and is home to more than 95 per cent of all fuel cell electric trucks and almost 85 per cent of hydrogen-powered buses.
In 2022, Germany rolled out the world’s first hydrogen-powered passenger train. It can travel up to 1,000 km (621 miles) on a single tank of hydrogen.
The aviation industry is also slowly but surely developing ways to use hydrogen for longer flights. In 2023, Germany saw the first piloted flight of an electric aircraft powered by liquid hydrogen.
Which countries are promoting green hydrogen projects?
The global race is heating up to build hydrogen infrastructure.
According to Global Market Insights, a research and management consultancy, the global hydrogen industry was valued at US$183 billion in 2022. The World Bank believes that by 2050, the demand for hydrogen is expected to grow to between 500 million to 680 million tons.
Despite China being the largest producer and user of hydrogen, only 1.5 per cent of its production is renewable. According to U.S. think tank, the Center of International and Strategic Studies, coal-based hydrogen production in China costs nearly half the price of renewable hydrogen.
China also released its first long-term plan for hydrogen. The government identified hydrogen as a “frontier” area and wants to produce between 100,000 and 250,000 tons of renewable-based hydrogen a year by 2025.
China estimates that these targets could reduce its emissions by between 1 million and 2 million tons annually.
In the United States, the Infrastructure Investment and Jobs Act (2021) authorised US$9.5 billion for clean hydrogen projects, incentives and job creation. The law hopes to lower production costs of clean hydrogen, helping make it cheaper for consumers.
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