The automotive sector is a major contributor to carbon emissions across the globe, with road transport alone responsible for 15% of total CO₂ emissions worldwide, according to Our World in Data. While electric vehicles (EVs) have reduced emissions through cleaner energy use during operation, their production phases particularly battery manufacturing still carry significant carbon footprints. This is where hydrogen powered fuel cells come in. Many automakers like Volvo and Paccar are developing hydrogen combustion engines and fuel cell systems, particularly for commercial vehicles. While fuel cells vehicles currently represent less than 0.1% of the market, their deployment in freight and public transport networks could drive broader adoption through economies of scale. The burgeoning global hydrogen fuel cell vehicle (FCEV) market – which is projected to reach $43.2 billion by 2031 -- underscores the increasing recognition of its potential to drive a paradigm shift in transportation, according to a research report by Indian Society of Analytical Scientists (ISAS).
In fact, Nitin Gadkari, Union Minister of Road Transport and Highways of India has highlighted the importance of technological advancements and infrastructure development for Green Hydrogen production. He has set an ambitious target of reducing the cost of hydrogen production to $1 per kg, asserting that achieving this would enable India to capture global hydrogen market.
Ideal option for heavy-duty and long-haul mobility
Not just in India, governments worldwide are actively fostering this transition through strategic policies, financial incentives, and pilot projects. The Government of India allocated funds worth Rs. 496 crore for pilot projects in the transport sector until 2025-26, demonstrating its commitment to advancing green hydrogen technology. This initiative is helping send clear price signals to both investors and OEMs, while also highlighting key focus areas such as efficiency, safety concerns and challenges in hydrogen storage and transportation. For example, the deployment of hydrogen fuel cell buses by NTPC in Leh and Greater Noida, capable of covering over 600 kilometers on a single refill with zero tailpipe emissions, showcases the practical viability of this solution. Additionally, Kerala’s pioneering efforts through the Kerala Green Hydrogen Valley project further exemplify the proactive approach towards integrating hydrogen across various transportation modes, including buses, trucks and boats.
Green Hydrogen offers several distinct advantages that render it particularly suitable for diverse mobility applications. Its extended driving ranges surpass those of battery electric vehicles (BEVs), making it ideal for long-haul transport. Rapid refuelling capabilities minimize downtime, enhancing operational efficiency. The high energy density of hydrogen is especially beneficial for heavy-duty applications, where battery weight and charging times pose significant challenges. Furthermore, the elimination of tailpipe emissions contributes substantially to cleaner air and a healthier environment. While BEVs have demonstrated higher overall energy efficiency, concerns surrounding limited lithium and cobalt reserves, battery disposal and grid infrastructure limitations underscore the importance of exploring complementary solutions. With this regard, Hydrogen combustion engines (H-ICE) present a potential pathway for faster adoption, leveraging existing manufacturing facilities and offering lower operating costs while reducing greenhouse gas emissions.
Building the backbone: Investment, Infrastructure and pilot projects
Applications of Green Hydrogen span across a wide array of sectors, including public transportation, heavy-duty vehicles, maritime shipping, aviation, and rail. Hydrogen fuel cell buses are being deployed in cities like Delhi National Capital Region (NCR) and Vadodara, offering a clean and efficient alternative to conventional diesel buses. Companies like Tata Motors are conducting trials on GH trucks for long-haul transport, addressing the limitations of battery electric trucks in this segment. The maritime industry is actively exploring green hydrogen and its derivatives, such as ammonia and methanol, to meet stringent emission reduction targets set by the International Maritime Organization (IMO). The aviation sector is researching direct hydrogen use in aircraft, with companies like Airbus developing hydrogen-powered aircraft prototypes. In the rail industry, hydrogen fuel cell trains are being trialed for both local and intercity transport, offering a clean alternative to diesel locomotives.
The development of robust hydrogen refuelling infrastructure is crucial for the widespread adoption of FCEVs. Pilot projects, such as those supported by India’s National Green Hydrogen Mission (NGHM), are essential for identifying and addressing operational challenges. According to a report by the World Economic Forum and Bain & Company, the NGHM’s support for pilot projects in sectors like steel, shipping, and energy storage further underscores the versatility of Green Hydrogen. In fact, there has been a rapid expansion of hydrogen use in road transport, highlighting the rapid growth of FCEV deployments worldwide, according to the Global Hydrogen Review 2024 report by International Energy Agency (IEA). The review also notes the increasing deployment of hydrogen refuelling stations (HRS) also enables faster adoption. China currently is leading in the number of such operational stations. However, challenges remain, including station closures in some regions and the need for infrastructure upgrades to accommodate heavy-duty vehicles.
The utilisation of hydrogen in internal combustion engines (H-ICE) presents a near-term opportunity for decarbonisation, particularly for heavy-duty fleets. Hythane-fueled IC engines, which uses a blend of hydrogen and methane as fuel, can accept up to 20% green hydrogen, offer a robust and less contaminant-sensitive energy conversion technology, according to a report by Ministry of New and Renewable Energy. Pilot projects, such as those conducted by Indian Oil Corporation and IIT Delhi, have demonstrated the feasibility of H-ICE applications in buses and three-wheelers. The adoption of hydrogen-diesel dual-fuel technology in compression ignition engines also holds promise for reducing emissions in existing vehicles. Furthermore, ongoing research and development efforts are focused on improving the efficiency and performance of hydrogen engines, including the development of hydrogen direct injection technology and advanced fuel injection systems.
Paving the way for a carbon-neutral future
Despite its immense potential, several challenges remain to be addressed for the widespread adoption of Green Hydrogen in the mobility sector. These include high production costs, infrastructure development, safety and handling concerns and efficiency losses compared to BEVs. However, ongoing research and development, coupled with increasing economies of scale and supportive government policies, are poised to overcome these barriers. Green Hydrogen represents a transformative opportunity to decarbonise the mobility sector and create a sustainable future.
By investing in research, infrastructure, and pilot projects, nations can accelerate the adoption of this clean energy carrier. While BEVs play a crucial role in the transition to sustainable transportation, GH fills a vital niche in heavy transport, maritime shipping, aviation, and other sectors. As technology advances and costs decline, green hydrogen is poised to play a pivotal role in driving the transition to a cleaner, more sustainable transportation ecosystem. The strategic integration of GH into the global mobility landscape is not merely an option but a necessity for achieving a carbon-neutral future.
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