Green hydrogen is hydrogen made by splitting water with electricity from clean sources such as wind or solar. When it is used, it gives off water instead of carbon dioxide, which makes it attractive for industries that are hard to electrify.
How it is made
A machine called an electrolyzer passes electric current through water and separates it into hydrogen and oxygen. If the electricity is clean, the hydrogen is called green. Most hydrogen today is made from natural gas, which is why the color of the label matters.
Where it could be used
The strongest cases are steelmaking, fertilizer, refining and long distance shipping. These uses need high heat or a chemical input that batteries cannot easily supply. Hydrogen can also store energy for later, though with losses along the way.
What holds it back
Green hydrogen is still more expensive than the fossil version. Electrolyzers cost money, clean power is needed in large amounts, and moving and storing hydrogen takes special equipment. The U.S. Department of Energy explains the production methods in more detail.
What to watch
Watch for falling electrolyzer costs, new clean power projects built to feed them, and customer commitments from steel and chemical makers. Those signals show where green hydrogen is moving from pilot to real demand.
The business takeaway
For most companies it is a long term option, not a quick fix. Understand where it fits your industry and keep an eye on costs. For the bigger picture, read our guide to climate tech.
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