Scaling up the green hydrogen economy

Green hydrogen is rapidly becoming central in the fight against climate changed and it is considered a cornerstone of the global energy transition.
This clean energy source has the potential to decarbonize some of the most polluting sectors of the economy, from heavy industry to long-haul transport. By leveraging renewable energy to produce hydrogen, countries can significantly reduce their reliance on fossil fuels and make substantial progress toward achieving their climate goals.

However, the road ahead is full of challenges, and success will depend on innovative policies, strategic investments, and international collaboration.

Green hydrogen is produced by splitting water into its constituent components—hydrogen and oxygen—using renewable electricity in a process called electrolysis.
The result is a fuel that emits no greenhouse gases when employed or used in fuel cells. Unlike gray or blue hydrogen, which are derived from natural gas and may involve significant carbon emissions or require carbon capture technologies, green hydrogen is sustainable when produced using renewable energy sources.

Its versatility is a major strength: it can fuel high-temperature industrial processes, such as steel production, as well as sectors where electrification is difficult, including aviation and maritime transport.

Despite the urgency, significant barriers remain.
Key steps governments, industries, and international organizations must take to accelerate the hydrogen economy include:

• Increasing green hydrogen production to meet future demand.

• Developing adequate infrastructure, such as transport and storage networks, as well as refueling stations for vehicles and industrial equipment.

Public-private partnerships can help share the financial cost of building this infrastructure, while government policies can provide the regulatory certainty needed to attract private investment. Some countries are already making progress.

In addition to supply, demand must also grow. Governments can encourage industries to adopt green hydrogen through carbon pricing, tax credits, or direct subsidies.

Key sectors include:

• Steelmaking and chemical production, where hydrogen can make the greatest impact, replacing coal and natural gas in high-temperature processes.

• Heavy-duty, maritime, and aviation transport, where policies promoting hydrogen can create significant demand and help drive economies of scale.

Global collaboration will play an increasingly important role in developing the hydrogen economy. The production of green hydrogen is energy-intensive, and some regions have a natural advantage due to abundant renewable resources. Countries in North Africa, the Middle East, and South America, for example, could become major exporters of green hydrogen to Europe and other regions. Bilateral agreements and international partnerships will be essential to establish these supply chains, ensuring a reliable flow of hydrogen while fostering economic development in producing countries.

A frequently overlooked aspect is public engagement. It is crucial to explain the benefits of green hydrogen to the public, addressing concerns about safety, costs, and environmental impact.
Building public trust and acceptance is essential for the widespread adoption of hydrogen technologies.

According to the International Energy Agency, the hydrogen sector could generate millions of jobs and contribute billions of euros to the global economy by 2050. For Europe, a thriving hydrogen economy could also mean greater energy independence, reducing reliance on fossil fuel imports from politically unstable regions.

In addition to its economic and strategic benefits, green hydrogen offers a scalable pathway to reduce greenhouse gas emissions, providing a clean alternative to fossil fuels across multiple sectors.

As we stand with green hydrogen today, we are at the beginning of a transformative journey.
The progress made so far is encouraging, but much remains to be done. By making the right choices now, we can unlock the full potential of green hydrogen and build a cleaner, more sustainable future for generations to come.