Discover Green Hydrogen | Balanced assessment of green hydrogen

For a country like India that is committed to achieving energy independence by 2047 and net-zero emissions by 2070, green hydrogen could become a critical enabler of the clean energy transition. Globally too, nations like the United States, Germany, Netherlands, UAE, China, Japan and Australia are racing ahead, setting ambitious targets and rolling out large-scale projects to expand their clean energy capacity.

Yet, the road ahead is not that straightforward. Questions about cost-effectiveness, infrastructure readiness and scalability continue to surface, prompting concerns about its real-world viability. Let’s take a closer look at the ambitious promise of green hydrogen and the mounting criticisms around its implementation. By offering a balanced assessment and practical solutions, let’s understand how green hydrogen can realistically meet global and national net-zero targets.

The Core Criticisms: Why the Pushback

While green hydrogen is often hailed as a cornerstone of the clean energy transition, there’s a growing body of criticism, often valid, that questions its short- to medium-term viability.

The first and most obvious hurdle is cost. The price of renewable electricity has certainly fallen, but when you factor in the capital-intensive nature of electrolyzers and the inefficiencies in the process, green hydrogen remains economically uncompetitive for now. This makes it a tough sell, especially in markets driven by cost-sensitive decision-making. According to Crisil, the price difference, currently at $2.0-2.5 per kg, is projected to narrow to $1.0-1.5 per kg over the next three fiscal years, but that may still be insufficient to drive large-scale adoption.

Then there’s the issue of energy efficiency. The process loses energy in every step of the value chain. From the moment we split water molecules, to the point it’s stored, transported and finally converted back into usable energy, the losses add up.

Water usage is another concern that often gets overlooked. As per fundamentals, to produce one kilogram of hydrogen, electrolysis consumes around nine litres of purified water. That might not sound like much in isolation, but when scaled to industrial levels, especially in arid regions Requires to consider desalination technologies, bringing added energy costs and logistical complexity.

Infrastructure is the fourth challenge. While there is a lack of pipelines, storage systems, fuelling stations and safety protocols, retrofitting existing infrastructure is costly and time-consuming and developing new assets from scratch takes years. This lack of readiness is a bottleneck for wider adoption.

Finally, there’s some degree of scepticism in both policy circles and the market. Some see the green hydrogen hype as a convenient distraction—one that allows fossil fuel interests to delay deeper structural changes. And while many governments have laid out ambitious hydrogen roadmaps, there’s often a gap between expression and execution. This disconnect breeds uncertainty, making investors wary and slowing momentum.

None of this is to say that green hydrogen doesn't have a role to play. It does, especially in hard-to-abate sectors. But we need to be honest about where the technology stands today and what it will take to get it to scale in a sustainable way.

The Case for Caution—but Not Abandonment

Much of the criticism around green hydrogen isn’t about the technology itself, it’s about the hype. While it’s often presented as a cure for decarbonization, the reality is more nuanced. Green hydrogen has a crucial role to play, especially in sectors where electrification simply doesn’t work — like steel production, chemicals (including in refinery & fertilizers as feedstock), cement, shipping and long-haul freight.

But to get there, we need a grounded and focused approach. That means directing investment and innovation toward improving electrolysis and other supporting technologies, particularly when paired with renewables. It means putting in place clear, long-term policies that give investors confidence and help scale up the infrastructure — pipelines, storage, refuelling stations—that will actually make this market viable.

Bridging the Gaps: What Can Be Done?

Bridging the gap between the ambitious green hydrogen vision and its slower real-world progress by 2030 will require more than just technological advancement—it demands unwavering commitment, cross-sector collaboration, and decisive leadership to drive implementation of green hydrogen and its derivative projects. This is a moment that calls for governments to move beyond grand declarations and roll out clear, actionable policies that support real projects on the ground. Long-term strategies, production incentives, and practical tools like carbon pricing or green procurement can give investors and industries the confidence to move forward.

Right now, green hydrogen simply costs more than fossil fuel alternatives. That won’t change unless we design smarter markets and provide targeted subsidies that make early projects viable, whether it's through innovative auction models or risk-sharing mechanisms. We also need quicker approvals, improved planning, and robust public-private partnerships to develop infrastructure across production, storage, transportation and end use.

Innovation is also essential. And early initiatives help prove what’s possible, refine regulations and build the trust that industries need to commit. Above all, we must not treat green hydrogen as a standalone solution. Its success depends on how well we align it with the growth of renewables and the wider energy system.

This is not just about meeting climate goals. It’s also about doing the hard work together so that green hydrogen and its derivatives can genuinely power cleaner industries, create jobs and reshape our energy future for the better. If we can take that balanced, impact-driven approach, green hydrogen has a real shot at becoming a cornerstone of a cleaner, more resilient energy future.

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