Challenges Hindering Green Hydrogen's Role in Energy Transition

2025-04-23 global

Global, Wednesday, 23 April 2025.
Despite its potential, green hydrogen faces high production costs and competition from alternative technologies. Its viability in displacing fossil fuels hinges on overcoming these barriers.

Current Production Costs and Economic Challenges

Green hydrogen production currently faces significant economic challenges, primarily due to high production costs, which range from $1.5 to $2.0 per kilogram [1]. This cost range is competitive with grey and blue hydrogen in some markets, but remains less economical than other energy solutions [2]. Moreover, green hydrogen production requires substantial energy inputs, primarily from renewable sources, making the production process capital-intensive [2]. Additionally, challenges in transportation and storage further impact the economic feasibility. For instance, hydrogen’s physical properties necessitate expensive infrastructure for safe and efficient transport, adding to the overall cost [3][2].

Infrastructure and Technological Hurdles

Significant infrastructure investments are required to support the extensive use of green hydrogen. Currently, around 4,500 kilometers of hydrogen pipelines exist globally, which is a fraction compared to 1.4 million kilometers of gas pipelines worldwide [3]. The development of this infrastructure is crucial to manage large-scale hydrogen deployment effectively. Technologically, innovation is needed to improve electrolysis efficiencies and reduce costs. Advances in electrolysis, such as high-temperature electrolysis and solid oxide cells, have demonstrated the potential for efficiency improvements, with efficiencies reaching up to 80-85% lower heating value [4].

Environmental and Resource Considerations

The production of green hydrogen presents environmental concerns despite its benefits in reducing carbon emissions. Water electrolysis, the primary method for green hydrogen production, requires substantial water resources, raising concerns over water scarcity, particularly in regions with limited water availability [1][5]. Furthermore, the transportation and storage of hydrogen involve technical challenges, such as maintaining high-pressure systems, which can pose risks and incur extra costs [5]. To mitigate these environmental concerns, integrating hydrogen production with renewable energy systems such as solar and wind power is essential, yet this remains a complex task requiring widespread infrastructure support [5].

Strategic Deployment and Future Outlook

The success of green hydrogen hinges on strategic deployment in sectors where it offers the most competitive advantage. Industries such as steelmaking, long-haul transport, and aviation, where electrification is challenging, present significant opportunities for green hydrogen integration [1][6]. Pilot projects that demonstrate the scalability and feasibility of hydrogen applications are essential for driving policy support and investment, particularly in international markets like the EU, USA, and India, where green hydrogen is gaining momentum [6]. Future projections suggest that with ongoing improvements and strategic focus, green hydrogen could support 12-15% of global final energy demand by 2050, playing a pivotal role in decarbonizing hard-to-abate sectors [1].

Sources

Green Hydrogen Energy Transition