To achieve global net zero carbon emissions targets, we must shift our energy mix away from fossil fuels. Hydrogen is increasingly being recognized as a key low-carbon energy solution to support this transition. It serves as a low-carbon alternative to fossil fuels, helping to decarbonize domestic and industrial heating, power generation, and heavy-duty transportation. Additionally, hydrogen can facilitate greater adoption of renewable energy by functioning as an energy storage medium to balance supply and demand.

Hydrogen produced from renewable electricity enables both energy conversion and storage, presenting a viable solution for decarbonizing challenging sectors of the economy. This includes long-distance transportation by trucks and airplanes, heavy industries, and even domestic applications when mixed with natural gas.

As hydrogen is scaled up to meet net zero targets, there is an increased risk of fugitive hydrogen emissions during its production, storage, transportation, and use. Although hydrogen itself is not a direct greenhouse gas and its oxidation product is water, it is considered an indirect greenhouse gas. When hydrogen is oxidized in the atmosphere by hydroxyl radicals, it contributes to the formation of methane and ozone, which are potent greenhouse gases. Moreover, some of the water gained through hydrogen oxidation ends up in the stratosphere, where it contributes to warming. These factors mean that any hydrogen leakage can reduce the climate benefits associated with transitioning to hydrogen. Furthermore, the impact of hydrogen on greenhouse gases and climate varies significantly depending on whether it is produced from renewable energy sources or fossil fuels.

A green hydrogen economy offers significant advantages in reducing carbon dioxide emissions across all relevant policy timeframes and leakage rates. Conversely, the carbon dioxide and methane emissions linked to blue hydrogen diminish the overall benefits of a hydrogen economy and can result in a climate penalty, especially with high leakage rates or a substantial share of blue hydrogen. Therefore, managing leakage rates and optimizing hydrogen production methods are crucial to achieving a clear climate benefit from a large-scale shift to a hydrogen economy.

As the world grapples with the urgent need to address climate change, hydrogen emerges as a beacon of hope in the quest for sustainable energy solutions. Often touted as the "fuel of the future," hydrogen has the potential to revolutionize our energy systems and significantly mitigate climate impacts. Let's delve into the climate benefits of a future hydrogen economy and explore why it’s gaining momentum as a viable path toward a greener planet.

1. Zero-Emission Energy Source

There are several benefits that the hydrogen offers, including its potential to deliver zero-emission energy. When hydrogen is used in fuel cells or combusted, the only byproduct is water vapor. Unlike fossil fuels, which emit carbon dioxide (CO2) and other pollutants, hydrogen combustion does not contribute to greenhouse gas emissions. This makes it an invaluable tool in the efforts to decarbonize sectors that are traditionally hard to electrify, such as heavy industry and long-haul transportation.

2. Hydrogen’s Versatility

Hydrogen's versatility extends across various sectors, amplifying its climate benefits. In transportation sector, hydrogen fuel cells are used to power cars, buses, and trucks, offering a clean alternative to diesel and gasoline vehicles. For heavy-duty applications, such as shipping and aviation, hydrogen can provide the high energy density required for long-distance travel without the significant emissions associated with conventional fuels.

In industry, hydrogen can be used in processes where reducing CO2 emissions is challenging, such as steel production and ammonia synthesis. By replacing carbon-intensive processes with hydrogen-based ones, substantial progress can be made in reducing industrial emissions.

3. Integration with Renewable Energy

The production of renewable energy, such as wind and solar is not always aligned with energy demand and is often intermittent and thus Hydrogen offers advantage in integrating renewable energy sources into the grid. Hydrogen can act as a storage medium, where excess renewable energy is used to produce hydrogen through electrolysis. This hydrogen can then be stored and utilized during periods of low renewable energy production, effectively balancing supply and demand and enhancing the stability of the energy grid.

4. Reduction in Air Pollution

The air quality can be improved with the use of hydrogen as traditional combustion engines emit pollutants such as nitrogen oxides (NOx) and particulate matter, which have detrimental effects on human health and the environment, but hydrogen fuel cells produce only water vapor, eliminating these harmful emissions and offering a cleaner alternative for urban areas plagued by air pollution. Thus, the use of hydrogen as a fuel leads to reduction in air pollution.

5. Economic and Technological Advancements

The shift to a hydrogen economy is beneficial for the climate and fosters economic growth and technological innovation. As demand for hydrogen technologies increases, investments in research and development will accelerate, leading to advancements in production, storage, and utilization technologies. This growth will result in new job opportunities in manufacturing, infrastructure development, and research, driving economic benefits alongside environmental ones.

6. Global Decarbonization

The potential of Hydrogen extends globally, offering solutions to diverse geographical and economic contexts. Countries that are rich in renewable energy resources, such as wind or solar power, can leverage these resources to produce green hydrogen. Meanwhile, nations with limited renewable resources can import hydrogen, fostering international cooperation and trade in the global hydrogen market. This global approach can help spread the benefits of hydrogen and contribute to worldwide decarbonization efforts.

Challenges and Considerations

Despite its promise, the hydrogen economy faces several challenges. The production of "green hydrogen" (produced via renewable energy) is currently expensive compared to hydrogen derived from fossil fuels. Additionally, developing infrastructure for hydrogen storage, distribution, and refueling requires significant investment. Addressing these challenges through technological innovation and supportive policies will be crucial in realizing the full potential of hydrogen.

According to TechSci Research report “India Hydrogen Market By Technology (Steam Methane Reforming, Membrane Cell Technology, Methanol Reforming, Coal Gasification and others), By Mode (Captive, Merchant), By Application (Petroleum Refinery, Fertilizers, Chemical & Petrochemical, Metal Processing, Automotive, Energy and Others), By Region, Competition, Forecast and Opportunities, 2020-2030F,” India Hydrogen Market achieved a total market volume of 7.12 million tonnes in 2024 and is expected to reach 10.78 million tonnes by 2030 with a CAGR of 7.35% during the forecast period. The market growth is driven by various factors, such as government policies and national strategies, commitments to climate goals, etc.