Is hydrogen fuel really the clean energy solution it's been promised to be?

Hydrogen could decarbonize steel, shipping, and aviation - industries where batteries can't help. But 95% of today's hydrogen is made from fossil fuels.

The answer

Hydrogen fuel cells generate electricity by combining hydrogen and oxygen, emitting only water vapor. The challenge is production: 95% of current hydrogen ("grey hydrogen") comes from natural gas reforming, producing significant CO₂. "Green hydrogen," made by electrolyzing water using renewable electricity, is the clean alternative but costs $4–6 per kilogram versus $1–2 for grey hydrogen. In 2024, the European Union committed €3 billion to its hydrogen strategy, and the US Inflation Reduction Act offers a $3/kg production tax credit for clean hydrogen. Toyota's Mirai fuel cell vehicle achieves 400-mile range with 5-minute refueling. For heavy industry, Swedish company SSAB produced the world's first fossil-free steel using green hydrogen in 2021. The International Energy Agency projects green hydrogen costs could fall below $2/kg by 2030 as electrolyzer manufacturing scales up.

Source: International Energy Agency

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