In a world scrambling to cut its dependence on fossil fuels, a quiet energy revolution is underway. It doesn’t grab headlines like solar panels or electric cars, but its promise could be just as transformative. Green hydrogen, an ultra-clean fuel made by splitting water using renewable energy, is stepping into the spotlight. The technology is old, the method simple, but the implications are vast. What is unfolding now is a high-stakes global race to master it, scale it, and make it commercially viable before climate deadlines loom too close.
At its core, green hydrogen is produced by using electricity, ideally from wind or solar, to break water into hydrogen and oxygen. What makes this process so important is its cleanliness: no carbon emissions, no fossil fuels. That sets it apart from grey hydrogen, which is made using methane, and blue hydrogen, which adds carbon capture to grey’s dirtier roots. Green hydrogen, in contrast, fits snugly into net-zero dreams.
For policymakers, it offers a way to tackle emissions in hard-to-decarbonise sectors. For entrepreneurs, it is the next frontier in clean tech. For countries with abundant renewable resources, it is a ticket to energy independence and a potential export boom. In short, it is an energy carrier with possibilities far beyond the laboratory.
Still, there is a long road between possibility and practice. At present, producing green hydrogen is costly. It is roughly two to three times more expensive than conventional methods. That is mainly because electrolyzers and renewable electricity are not cheap enough yet. Also, hydrogen does not flow through our existing gas pipelines. Building the infrastructure, from storage to transport, requires time, money, and political will. There is also the issue of water: electrolysis consumes a lot of it, which could pose problems in dry regions.
Even so, many countries are already in motion. The European Union is making an aggressive push, aiming for 10 million tonnes of domestic green hydrogen production by 2030. Germany, the Netherlands, and Spain are already rolling out major projects, backed by serious public funding. Australia is leaning on its sunshine and space, betting big on green hydrogen exports to Asia. In the Middle East, Saudi Arabia and the UAE, oil-rich but future-facing, are hedging their bets by investing heavily in hydrogen facilities linked to their mega-projects.
Meanwhile, Japan and South Korea have long been bullish on hydrogen tech, especially for transport. Japan’s government has actively supported a hydrogen ecosystem for years, partnering with Australia for future supply. India, too, has joined the race with a national hydrogen mission and bold production targets aimed at both export and domestic use.
The laggards? The United States is making moves under the Inflation Reduction Act, but the rollout has been sluggish. Policy clarity and state-level coordination are still catching up. China, though dominant in solar panel and battery production, is still focusing more on grey and blue hydrogen, with green remaining in its early phase.
Why does all this matter to anyone outside the energy sector? Because hydrogen could soon shape the economy as much as oil once did. Clean hydrogen could slash emissions in steel plants, keep trucks running without diesel, and power aircraft across continents. If things go right, it might help balance power grids by storing renewable energy when the sun is not shining and the wind is not blowing.
The International Energy Agency (IEA) projects that hydrogen demand could more than double by 2050. If green hydrogen captures a large share of that, it will reshape industries, shift global trade patterns, and alter who controls energy flows around the world. But this will not happen by accident. It will take massive investments, clear regulation, and coordinated global action.
There is no guarantee that green hydrogen will become the star player many hope it will be. But it is increasingly clear that it has a seat at the table. For countries betting on it now, the rewards could be substantial, not just environmentally, but economically and strategically. In the energy world, as in so many others, those who move first often shape the game. And the clock is ticking.