Published
in Economy
Green hydrogen is becoming a central pillar in the global transition to clean energy. Countries like Germany, Japan, and Australia are investing billions to scale up production, with a projected global market reaching over $500 billion by 2030.
Green hydrogen is hydrogen produced using renewable electricity (from wind or solar) to split water into hydrogen and oxygen through electrolysis. Unlike grey or blue hydrogen, it emits no CO2 in the production process. It is key for decarbonizing sectors like heavy industry, shipping, aviation, and power generation.
As of 2023, global hydrogen production stands at around 95 million tonnes, but less than 1% of that is green hydrogen. The top producers include: China (over 30 million tonnes, mostly grey), United States (around 10 million tonnes), European Union (over 8 million tonnes), and Japan and South Korea as growing consumers and producers. 'The rest'—including nations in Latin America, Africa, and Southeast Asia—each contribute under 1% of global output but show significant growth potential.
By 2030, the global green hydrogen market is expected to exceed $500 billion, with production reaching over 150 million tonnes. Leading players include Australia (export plans over 200,000 tonnes), Germany (planning to import up to 70% of domestic needs), and Saudi Arabia (via the NEOM project). Emerging exporters such as Chile, Namibia, and Morocco are developing hydrogen industries thanks to abundant renewables.
Among countries contributing less than 1% of current production, several are launching pilot programs with global ambitions. Kenya, for example, is developing green hydrogen for fertilizer. Portugal is focusing on ammonia exports. These smaller nations could outperform expectations due to innovation, favorable climate, and early investments.
Green hydrogen is used in heavy transport, steel and ammonia production, power storage, and as a clean fuel for industries that are hard to electrify.
Green hydrogen is produced with renewable energy and has zero carbon emissions, while grey hydrogen is made from natural gas (high emissions) and blue hydrogen captures some of those emissions.
