No longer the stuff of science fiction, green hydrogen is becoming an industrial and economic reality. From Europe to Asia, projects are multiplying, funding is surging, and the world’s biggest players are jumping in.
Once seen as a distant promise, green hydrogen is now rapidly taking shape. Produced from water using renewable electricity, this energy carrier could play a key role in decarbonizing entire sectors: transportation, heavy industry, logistics, and even electricity production. The global energy transition may have just found its new ally.
Record-Breaking Investments Around the Globe
Since 2020, announcements for green hydrogen projects have skyrocketed. The European Union plans to invest more than €400 billion by 2030. Gigantic electrolysis plants are under construction in Germany, Spain, Denmark, and France. Meanwhile, China is building hydrogen industrial zones in its sunniest provinces.
Even Gulf countries, long-time fossil fuel producers, are pivoting: Saudi Arabia is banking on green hydrogen for its post-oil strategy through its Neom project. Australia, for its part, aims to become the world’s leading exporter of clean hydrogen.
A Solution for Hard-to-Decarbonize Sectors
Green hydrogen is generating so much excitement because it offers a real-world answer to industries notoriously difficult to decarbonize. In steelmaking, for example, it enables carbon-free steel production. In maritime shipping, it powers clean fuel cells. And in aviation, Airbus is working on hydrogen-powered planes for 2035.
Unlike direct electrification, which has limitations in heavy-duty or mobile applications, hydrogen offers high energy density and flexible storage. This makes it a credible complement to batteries, especially for trucks, trains, and industrial operations.
A Promising Yet Costly Emerging Industry
Today, green hydrogen is still significantly more expensive to produce than hydrogen from natural gas (grey hydrogen). This cost gap—due to electrolyzer technology and renewable electricity prices—remains a barrier to competitiveness.
To overcome it, governments and companies are betting on scaling up, innovation, and policy support. Encouraging signs are emerging: according to the International Energy Agency, the cost of green hydrogen could be cut in half by 2030.
The Industrial Race Has Begun
Major industrial players don’t want to miss the shift. Engie, EDF, TotalEnergies, ArcelorMittal, Alstom, and Air Liquide are positioning themselves across the value chain: production, transport, storage, and usage.
Start-ups like Lhyfe, H2V, and McPhy are innovating with more efficient processes and decentralized solutions. Collaborations between governments, corporations, and research centers are proliferating to build a favorable ecosystem.
Logistical, Political, and Environmental Challenges
Despite its potential, hurdles remain. Hydrogen’s volatility poses safety and infrastructure challenges for transportation. International standards are still lacking, and unequal subsidies raise concerns about market distortions.
Experts also caution against unrealistic expectations: for hydrogen to be truly green, it must be produced entirely with renewable electricity, requiring vast and well-planned generation capacity.
A Global Race with Geopolitical Stakes
Behind the technological competition lies a strategic battle. Countries that can produce large quantities of low-cost green hydrogen could become the energy superpowers of the 21st century—reshaping global influence well beyond climate goals.
Once considered speculative, green hydrogen is now a tangible factor in industrial competitiveness and energy sovereignty. The only question that remains is: who will succeed in scaling it up?
