Hydrogen isn’t just energy — it will be the currency that fuels the future

7 thoughts on “Hydrogen isn’t just energy — it will be the currency that fuels the future”

1. While the vision of hydrogen as the “currency of the clean economy” is compelling, there are significant practical and feasibility challenges that temper its promise, particularly green hydrogen, as a scalable and economically viable solution in the near to medium term.
   Green hydrogen production (via electrolysis using renewable energy) remains expensive. Current costs range from US$3.50–6.00/kg, significantly higher than grey hydrogen (produced from natural gas at US$1–2/kg) or fossil fuel alternatives. Even with optimistic projections, achieving the target of <US$1/kg (e.g., Reliance Industries’ goal) requires massive scale and technological breakthroughs, which are not guaranteed.
   High costs make green hydrogen uncompetitive for many applications (e.g., steel, shipping) without heavy subsidies or carbon pricing. Until economies of scale are achieved, hydrogen’s role as a mainstream economic "currency" is limited, especially for developing nations like India, where cost sensitivity is high.
   Green hydrogen production is inherently energy-intensive. Electrolysis has an efficiency of 60–80%, meaning 20–40% of the input renewable energy is lost. Additional losses occur in storage, transport, and conversion (e.g., to ammonia or back to electricity), resulting in end-to-end efficiency as low as 20–30% for some applications (e.g., hydrogen fuel cells vs. direct electrification). For sectors like transportation or power generation, direct electrification (e.g., battery electric vehicles or grid-scale renewables) is often more efficient and cheaper. Hydrogen’s role as a "bridge" for hard-to-abate sectors is valid, but its inefficiency undermines claims of it being a universal economic driver compared to more efficient alternatives.
   Hydrogen requires a new ecosystem—electrolysers, pipelines, storage facilities, and refuelling stations—which is costly and underdeveloped. Retrofitting existing gas pipelines or building dedicated hydrogen infrastructure involves billions in investment. For example, India’s National Hydrogen Mission estimates ₹8 lakh crore (US$95.9 billion) by 2030 for infrastructure, a massive financial burden. The lack of infrastructure creates a chicken-and-egg problem: demand won’t grow without infrastructure, but investment in infrastructure lags without proven demand.
   Without rapid, coordinated investment, hydrogen’s role as a "strategic reserve" or economic currency is delayed, potentially by decades, limiting its immediate transformative potential.
   Green hydrogen relies on abundant, cheap renewable energy (solar, wind) to be viable. However, renewable capacity is constrained by land availability, grid integration, and intermittency. For instance, India’s goal of 5 MMTPA of green hydrogen by 2030 requires ~125 GW of dedicated renewable capacity (per industry estimates), equivalent to nearly half of India’s current total renewable capacity. Competing demands for renewables (e.g., grid decarbonization, EV charging) strain supply, especially in developing nations. Hydrogen’s scalability is bottlenecked by renewable energy availability, undermining its role as a near-term economic backbone.
   Hydrogen is difficult to store and transport due to its low energy density and volatility. It requires high-pressure tanks (700 bar) or cryogenic storage (-253°C), both of which are expensive and energy-intensive. Pipelines face risks of embrittlement, and long-distance transport (e.g., as ammonia) adds conversion costs and safety concerns. These technical hurdles increase costs and slow deployment. Hydrogen’s promise as a globally traded "currency" is constrained by these practical limitations, making oil’s established infrastructure far more robust in comparison.
   Current demand for green hydrogen is low, concentrated in niche applications (e.g., pilot projects in steel or ammonia). Without clear demand signals, industries hesitate to commit, slowing the transition to a hydrogen-based economy. For instance, sectors like shipping or aviation require hydrogen-derived fuels, which are 2–3 times costlier than fossil alternatives, delaying adoption. Hydrogen’s economy is more of a future asset than an immediate currency.
   While green hydrogen is "near-zero carbon," its production still has environmental footprints. Electrolysis requires significant water (~9 litres/kg of hydrogen), posing challenges in water-scarce regions like parts of India.
   While hydrogen holds transformative potential for hard-to-abate sectors and long-term decarbonization, its practicality and feasibility face significant hurdles: high costs, energy inefficiencies, infrastructure gaps, renewable energy constraints, logistical challenges, limited demand, and environmental trade-offs. These issues suggest that hydrogen is not yet a universal "currency" but rather a niche, evolving solution with a long runway to maturity. For investors, nations, and corporations, the focus should be on targeted applications (e.g., steel, ammonia) and cost-reduction innovations rather than banking on hydrogen as an immediate economic reset. Direct electrification and other mature technologies may outpace hydrogen in many sectors, questioning its centrality in the clean economy narrative by 2030.

   Reply

   1. Thanks Murali Krishna for being part of this conversation. Your feedback keeps me motivated. Let me explain here the true potential of Hydrogen.

      Hydrogen is definitely going to be the Currency, that will redefine the Clean Economy — despite it’s early hurdles. The following insights help us in arriving the opinion.
      Every great technological revolution begins with disbelief.
      When the first steam engines roared, critics called them “inefficient toys.”
      When electricity arrived, it was commented “too dangerous, too costly, too complex.”
      When solar energy was introduced, it was felt “unreliable and expensive.”
      Yet, history didn’t stop for the skeptics.
      Hydrogen today stands exactly at that same inflection point, misunderstood by the cautious, but championed by the visionary.
      Yes, green hydrogen faces challenges — cost, efficiency, infrastructure and scale. But to reduce its destiny to current economics is to misunderstand how technological transformations unfold. Every transformative force in history — from the Internet to electric mobility, began as a prohibitively expensive, inefficient, and seemingly impractical idea. What matters is not where hydrogen is today, but where it will be headed.
      1. Every Revolution starts expensive — Until it doesn’t
      When solar panels first appeared, their cost exceeded US$70 per watt in the 1970s. Today, it’s under US$2.5 — a 97% drop, thanks to scale, innovation and global collaboration.
      Similarly, lithium-ion batteries cost over US$1,200/kWh in 2010; by 2024, they dropped below US$130/kWh.
      Hydrogen’s trajectory is no different.
      Electrolyzer costs are expected to decline another 70–80% by 2035,according to BloombergNEF and IRENA. As manufacturing scales in India, China, Europe, and the Middle East, the cost per kilogram will likely converge toward the US$1–2/kg threshold — the “green parity” zone.
      The question isn’t if — it’s when.
      2. Inefficiency is the Price of Innovation
      Critics often point to electrolysis inefficiencies (60–80%) and hydrogen’s energy losses in storage and conversion. But inefficiency has been the hallmark of every new energy form, before optimization.
      The internal combustion engine converts only 25–30% of fuel energy into motion — yet it powered a century of progress.
      Early solar cells had less than 5% efficiency; today, we are nearing 30% commercial modules.
      Even lithium batteries lose up to 20% energy in charging and discharging, yet they dominate modern mobility.
      Hydrogen’s inefficiency is not a dead end — it’s a design challenge, not a destiny. With innovations like high-temperature solid oxide electrolyzer, AI-based grid management, and ammonia-based hydrogen carriers, overall system efficiency will improve dramatically over the next decade.
      3. Infrastructure Challenges are Opportunities in Disguise
      Building hydrogen pipelines, refueling hubs, and electrolyzer clusters, at present, is capital-intensive — yes. But this investment represents the foundation of a trillion-dollar energy transition economy.
      When the oil era began in the 20th century, global powers spent decades and trillions laying down refineries, pipelines, and ports. Hydrogen demands the same courage — but offers far cleaner returns.
      Reliance, Adani, NTPC, and L&T are already aligning with global giants like Air Products, BP, and TotalEnergies to create integrated hydrogen ecosystems.
      Each electrolyzer plant, each hydrogen corridor, each pilot refinery is a strategic foothold in the next energy economy.
      4. Renewable Energy Bottlenecks are Temporary — Integration is the Key
      It’s true that green hydrogen depends on abundant renewable power. But India’s solar and wind potential is enormous & technically feasible for their capacity enhancement.
      Hydrogen can act as the flexible battery for this renewable surge — absorbing surplus power during off-peak hours and releasing energy when the grid needs it most.
      In fact, hydrogen solves one of renewable energy’s biggest problems — storage.
      It can store energy for months, unlike batteries that discharge within hours or days. That’s why nations like Japan, Germany and Saudi Arabia view hydrogen not as competition to renewables but as their backbone.
      5. Hydrogen: The Strategic Bridge for Hard-to-Abate Sectors
      While battery electrification suits cars or homes, it struggles with heavy industries, aviation, shipping, and fertilizer production. Here, hydrogen is irreplaceable.
      Steel: Companies like ArcelorMittal, JSW, and Tata Steel are piloting hydrogen-based direct reduction plants.
      Shipping: Maersk and BP are investing in green methanol and ammonia.
      Aviation: Airbus plans its first hydrogen-powered commercial aircraft by 2035.
      Fertilizers: Green ammonia will power India’s agricultural backbone, replacing grey hydrogen used today.
      These aren’t hypotheticals — they are the early footprints of a coming energy order.
      6. Environmental Payback outweighs the Initial Cost
      Every kilogram of green hydrogen replaces nearly 10 kg of CO₂ emissions from grey hydrogen. At scale, the climate payoff is monumental.
      If India achieves just 5 MMTPA of green hydrogen by 2030, it could cut 50 million tonnes of CO₂ annually — equivalent to removing 11 million cars from the road every year.
      Hydrogen’s water consumption (9 liters/kg) is real, but manageable — especially with sea-water electrolysis and wastewater recycling technologies already being tested.
      7. The Long Game: From Experimental to Inevitable
      No new energy system becomes dominant overnight. Oil took five decades to replace coal.
      Solar took 30 years to become mainstream.
      Hydrogen will likely follow a similar arc — but with far more urgency and global coordination.
      By 2040, green hydrogen will be where solar was in 2010 — past its teething phase, entering exponential growth. By 2050, it could power 20–25% of the global energy mix, according to IEA and McKinsey projections.
      The world’s biggest economies — EU, Japan, the U.S., India, China, and the Middle East — are not investing billions for symbolism. They see hydrogen as the next economic engine that will replace oil not just in fuel tanks, but in geopolitical power structures. Hydrogen will reshape geopolitical power by reducing dependence on oil-rich nations.
      The Verdict: Hydrogen is the Currency of Courage
      Hydrogen’s journey will be turbulent. It will stumble, evolve and reinvent itself — as every great disruptor has. But that’s exactly why it will endure.
      Today’s inefficiencies are tomorrow’s breakthroughs.
      Today’s costs are tomorrow’s competitiveness.
      Today’s skepticism is tomorrow’s proof.
      Hydrogen is not merely a fuel — it’s the currency of courage, innovation, and the clean economy’s future.
      As we stand at the edge of the energy revolution, the real question is not whether hydrogen will lead the clean economy —
      but whether we have the vision to invest in it before it’s too late.

      “Every revolution looks impossible at the start — until the first few believers make it inevitable. Hydrogen is that belief. The world doesn’t need another fuel; it needs another future. And that future runs on hydrogen.”

      So only “From energy titans to tech conglomerates, global giants are betting billions & laying the groundwork for trillions — on one conviction: that hydrogen will fuel the next great industrial revolution.”

      Reply

      1. While green hydrogen is envisioned as the “currency of the clean economy,” the fact is that renewable energy, combined with advanced battery storage, offers a cheaper, safer, practical, efficient, and scalable solution for most sectors. The following discussion will highlight why hydrogen’s role will likely be confined to niche applications (e.g., aviation, shipping, and steel) and why renewables, paired with emerging battery technologies, will play a dominant role.

         Costs, safety, scalability:
         The argument that green hydrogen’s high costs (US$3.50–6.00/kg) will follow the cost-reduction path of solar (from $70/watt to $ 2.50) or lithium-ion batteries (from $1,200/kWh to $130/kWh) oversimplifies the challenges of hydrogen. Solar and batteries benefited from clear technological pathways (e.g., silicon cell efficiency, economies of scale in lithium production). Green hydrogen’s cost reduction relies on multiple interdependent factors: cheaper electrolysers, abundant low-cost renewables, and massive infrastructure investment. The purported cost reduction of electrolysers by 2035 is speculative and assumes perfect scaling, which is uncertain given supply chain constraints, raw material costs (e.g., rare metals like iridium), and competition for renewables. In contrast, battery storage costs are already plummeting and more predictable. By 2024, lithium-ion battery prices fell to ~$100/kWh, with projections for $50–60/kWh by 2030. Emerging technologies like sodium-ion batteries (potentially $30–40/kWh by 2035) and solid-state batteries offer even lower costs, higher safety (during transportation and usage), faster charging, longer life cycles, higher energy density, lower maintenance and wider operating temperature ranges (-20°C to 60°C for sodium-ion). These advancements make batteries ideal compared to hydrogen in most applications, like grid storage and transportation, without requiring a new ecosystem. For instance, battery electric vehicles (BEVs) are already 3–4 times cheaper to operate than hydrogen fuel cell vehicles (FCVs) per km. Hydrogen’s cost parity is a distant goal, while batteries are already economically viable.

         Efficiency and longer life:
         The argument that hydrogen’s inefficiency (60–80% for electrolysis, 20–30% end-to-end for fuel cells) is a “design challenge” comparable to early internal combustion engines or solar cells, underestimates hydrogen’s structural inefficiencies. Unlike batteries, which achieve 80–90% round-trip efficiency for grid storage, hydrogen’s energy losses are compounded across production, storage, transport, and conversion. For example, converting hydrogen to ammonia for shipping and back to electricity for power generation yields efficiencies as low as 15–25%. Even with optimistic innovations (e.g., high-temperature electrolysers), hydrogen’s thermodynamic limits cap efficiency gains. Battery storage, however, is rapidly improving. Lithium-ion batteries already achieve 85–95% efficiency, and next-generation technologies like flow batteries or sodium-ion systems promise similar performance with longer lifecycles (15–20 years vs. hydrogen infrastructure’s uncertain durability). For grid-scale storage, batteries paired with renewables are already deployed at scale (e.g., Tesla’s Megapack systems), while hydrogen storage remains experimental and costly. In transportation, BEVs convert 85–90% of energy to motion, compared to FCVs’ 25–35%. For most sectors, direct electrification with batteries is inherently more efficient, safer, cheaper, scalable and practical.

         Infrastructure:
         The argument that hydrogen’s infrastructure needs an “opportunity” akin to the oil industry’s buildout ignores the scale and complexity of creating a hydrogen economy from scratch. India’s estimated ₹8 lakh crore (US$95.9 billion) by 2030 for hydrogen infrastructure (electrolysers, pipelines, storage) is a massive financial burden, especially for developing nations. Retrofitting gas pipelines risks embrittlement, and new pipelines face regulatory and land acquisition hurdles. Hydrogen refuelling stations cost $2–3 million each, compared to $100,000–500,000 for EV fast-charging stations, which can leverage existing electrical grids. Battery storage, conversely, integrates seamlessly with existing infrastructure. Grid-scale battery systems use standard electrical connections, and EV charging networks are expanding rapidly. Batteries don’t require specialised pipelines or cryogenic storage, reducing deployment costs and risks. For example, China’s 50 GWh of battery storage in 2024 was installed in under two years, while hydrogen infrastructure projects (e.g., Europe’s Hydrogen Backbone) face decades-long timelines. Batteries scale faster and cheaper, making them the default for most sectors.

         Bottlenecks:
         The claim is that hydrogen can act as a “flexible battery” for renewables, storing surplus energy for months. While hydrogen can store energy long-term, its low round-trip efficiency (20–30%) makes it a poor choice compared to batteries for most applications. India’s goal of 5 MMTPA of green hydrogen by 2030 requires ~125 GW of dedicated renewable capacity—nearly half its current renewable capacity—competing with grid decarbonization and EV charging. Renewable energy is not abundant enough to support both hydrogen and direct electrification in the near term, especially in land-constrained regions. Advanced battery storage, however, complements renewables more effectively. Flow batteries and sodium-ion systems offer seasonal storage potential (days to weeks) with 80–90% efficiency, sufficient for most grid needs. Projects like Australia’s 2 GWh battery storage systems demonstrate rapid deployment, while hydrogen storage remains niche (e.g., pilot projects in Germany). Batteries also avoid hydrogen’s water consumption (9 litres/kg), a critical issue in water-scarce regions. For renewable integration, batteries are the scalable, efficient choice.

         Hydrogen Is Niche, Batteries are Universal:
         Hydrogen’s role in hard-to-abate sectors like steel, shipping, and aviation is valid. However, these are niche applications, not evidence of hydrogen as a universal “currency.” For most sectors—transportation, buildings, and power—batteries and direct electrification are superior. BEVs dominate passenger vehicles compared to hydrogen FCVs at <1% due to high fuel costs ($12–15/kg vs. $0.15/kWh for electricity). In power generation, battery storage paired with renewables is cheaper and faster to deploy than hydrogen-based fuel cells. Emerging battery technologies—sodium-ion, solid-state, and flow batteries—offer longer lifecycles (10,000+ cycles), safer chemistries, and wider temperature ranges, making them viable for diverse climates and applications. For example, sodium-ion batteries use abundant materials (no lithium or cobalt), reducing costs and supply chain risks. These advancements make batteries the go-to solution for all but the most specialised sectors.

         Environmental Trade-Offs: Hydrogen’s Hidden Costs:
         Hydrogen’s water consumption (9 litres/kg) is downplayed by citing seawater electrolysis, which is still experimental and energy-intensive. In water-scarce regions like Rajasthan, India, this is a significant barrier. Battery production, while not perfect, has a smaller environmental footprint, especially with recycling (e.g., 95% of lithium-ion batteries are recyclable). Sodium-ion batteries, using abundant sodium and no rare metals, further reduce environmental impact. Hydrogen’s logistics—high-pressure or cryogenic storage, ammonia conversion—also increase its carbon footprint if not fully green, undermining its “near-zero carbon” claim.

         Demand and Scalability: Hydrogen Lags, Batteries Lead:
         Hydrogen is envisioned as a geopolitical game-changer, but current demand is negligible outside pilot projects. Batteries, however, are already mainstream: global battery storage capacity reached 100 GW in 2024, with 500 GW projected by 2030. EV sales are on track for 65% of global vehicle sales by 2035, while hydrogen FCVs struggle to scale due to refuelling infrastructure gaps. Batteries have clear demand signals and established markets, while hydrogen’s “chicken-and-egg” problem persists.

         Hydrogen as a fuel has limited potential:
         Hydrogen’s transformative potential is limited to niche sectors like steel, ammonia, shipping and aviation, where direct electrification is impractical. For most applications, renewable energy with advanced battery storage is cheaper, safer, practical, scalable and more efficient, and leverages the existing infrastructure. Emerging battery technologies (sodium-ion, solid-state) offer a better solution than hydrogen’s complex ecosystem. By 2030, batteries will dominate the clean economy, while hydrogen remains a specialised tool, not a universal “currency.” Therefore, it may be better to focus on accelerating battery deployment and innovation, not betting on hydrogen’s uncertain promise.

         In summary, hydrogen could be considered and developed as a mainstream clean energy source in place of conventional fuels, provided a better alternative clean energy source were not available. But with the availability of renewables and advanced battery storage—superior in terms of safety, cost, scalability, efficiency, and existing infrastructure—where is the need to develop hydrogen as a mainstream fuel?

         Reply

         1. Why Hydrogen Still Matters in a Battery-Dominated World

            The world is in the middle of a clean energy revolution. Solar panels are cheaper than ever. Wind farms are scaling across continents. Battery storage costs have plunged by more than 85% in just over a decade.
            In this golden age of electrification, one question keeps resurfacing among scientists, investors, and policymakers alike:
            If renewables and batteries already offer clean, efficient, and affordable energy — why invest billions into hydrogen?
            At first glance, it sounds like a fair question. Battery-electric vehicles are mainstream. Solar and wind farms deliver record-low costs. So why complicate the equation with hydrogen — an element that’s difficult to store, transport, and currently expensive to produce?
            The answer lies in understanding a single truth about energy transitions: no single technology can decarbonize everything.
            Hydrogen isn’t here to compete with solar panels or batteries. It’s here to complete the clean energy puzzle.
            The Rise of Renewables: A Revolution in Motion
            Over the past decade, renewables have transformed from experimental technologies into the backbone of new energy systems.
            Solar costs have dropped nearly 90% since 2010, making it the cheapest form of electricity in most parts of the world.
            Wind power costs have declined by nearly 70%, powering entire nations during peak production hours.
            Battery prices (for lithium-ion) fell from $1,200 per kWh in 2010 to under $130 in 2024, enabling cost-effective energy storage for homes, grids, and electric vehicles.
            Countries like China, India, the U.S., and Germany are leading massive renewable deployments. In India, the cost of solar electricity has fallen below ₹2.5 per kWh — cheaper than coal.
            The combination of renewables and advanced battery storage is revolutionizing power systems, enabling microgrids, and electrifying millions of vehicles.
            So yes — renewables are winning the energy cost war.
            But cost isn’t the only battlefield. Continuity, capacity, and chemistry still matter.

            The Hidden Gaps in the Clean Energy Transition
            While renewables and batteries dominate headlines, the reality is that electricity only represents about 20–25% of total global energy use.
            That leaves 75% of the world’s energy — industries, transport, chemicals, and heating — still dependent on fossil fuels.
            Here’s where the limits appear:
            Steel, Cement, and Chemicals
            These industries need ultra-high heat (>1,000°C) or reducing agents that batteries can’t deliver.
            Hydrogen, however, can act as a carbon-free replacement for coal or gas in furnaces and chemical reactions.
            Example: Sweden’s HYBRIT project uses green hydrogen to make fossil-free steel — already supplying automakers like Volvo.
            Aviation and Shipping
            Jet fuel and marine oil dominate these sectors. Batteries are simply too heavy to provide intercontinental energy density.
            Hydrogen and its derivatives (like ammonia and e-methanol) can become zero-carbon fuels for global trade and travel.
            Maersk is investing in green methanol ships.
            Airbus plans hydrogen-powered aircraft by 2035.
            Long-Duration and Seasonal Storage
            Batteries are superb for hours or days. But they’re not yet viable for weeks or months of storage.
            Hydrogen can store surplus renewable energy from summer and release it during winter shortages — a process called Power-to-Gas-to-Power.
            Without hydrogen, grids risk blackouts during extended periods of low wind or sun.
            With it, energy security transforms into resilience.
            Hydrogen is the Missing Link of the Clean Economy
            Hydrogen is the most abundant element in the universe. When used as fuel, its only emission is water vapor.
            It’s this green hydrogen that excites the world today.
            Real-World Examples:
            Germany’s Hydrogen Backbone is building a 4,500 km dedicated pipeline network by 2032.
            Japan is pioneering hydrogen imports from Australia and the Middle East.
            The U.S. has launched multi-billion-dollar hydrogen hubs under the Inflation Reduction Act (IRA).
            India’s National Green Hydrogen Mission aims to produce 5 million metric tonnes (MMT) annually by 2030 — positioning India as a global export hub.
            In short: every major economy is betting on hydrogen not as an alternative to renewables, but as an accelerator of total decarbonization.
            Why Batteries Alone Can’t Do It All
            Batteries shine in short-term power management. But every technology has its physics.
            1. Energy Density
            Hydrogen stores almost three times more energy per kilogram than gasoline — and nearly 100 times more than lithium-ion batteries by weight.
            For aircraft, ships, and heavy trucks, that’s a game-changer.
            2. Material Constraints
            Battery production relies heavily on lithium, cobalt, and nickel — all limited and geopolitically concentrated.
            Hydrogen uses water and electricity, far more abundant and geographically neutral.
            3. Duration and Scale
            To power a city for one week via batteries would require enormous installations — financially and spatially impractical.
            Hydrogen can be stored underground, in tanks, or converted to ammonia for global transport.
            4. End-of-Life and Recycling
            Hydrogen systems are largely circular: you use electricity to create hydrogen, and hydrogen to regenerate electricity.
            Battery recycling, while improving, still faces toxic and logistical hurdles.
            So while batteries are the brain of clean energy systems, hydrogen is becoming the backbone.
            Economics: From Hype to Hard Numbers
            In 2010, producing one kilogram of green hydrogen cost over $12–15.
            Today, it’s around $3–5/kg, and analysts project below $1.5/kg by 2030 — the magic number where hydrogen competes with fossil fuels.
            Drivers of Cost Reduction:
            Cheaper Renewables → Lower electricity input costs.
            Economies of Scale → Bigger electrolyzers = lower capex.
            Technology Innovation → Higher efficiency, modular systems.
            Government Support → Subsidies, carbon pricing, and hydrogen credits.
            For instance:
            U.S. IRA offers up to $3/kg tax credits for green hydrogen.
            EU Hydrogen Bank is funding €800 million in subsidies for first movers.
            India’s Green Hydrogen Policy waives inter-state transmission charges for 25 years for producers.
            Hydrogen is no longer a distant vision — it’s an emerging market with real economics.
            Hydrogen as Energy Security and Geopolitical Strategy
            Energy is not just about technology — it’s about sovereignty.
            Countries dependent on imported oil and gas face strategic vulnerability.
            Hydrogen can be produced locally using sunlight and water, enabling true energy independence.
            Japan and South Korea are investing in hydrogen imports to reduce oil dependence.
            Saudi Arabia is repositioning itself as a green hydrogen exporter, building the $8.4 billion NEOM project.
            Australia is developing massive solar-to-hydrogen export systems to supply Asia.
            For the first time, hydrogen allows energy democracy — where every sun-rich nation can become a clean-energy superpower.
            Hydrogen + Renewables: Partners in Progress
            The clean energy future is not either-or — it’s hybrid.
            Imagine a future where:
            Solar farms produce daytime electricity.
            Excess power runs electrolyzers that generate hydrogen.
            Hydrogen is stored for months, shipped globally, or used in industry.
            During peak demand or dark seasons, it’s reconverted into clean power.
            This is Power-to-X — converting renewable electricity into fuels, feedstocks, and flexible energy carriers.
            Hydrogen thus becomes the bridge connecting electricity, mobility, and industrial ecosystems.
            As the International Energy Agency (IEA) said:
            “Hydrogen is the missing piece of the puzzle for reaching net-zero emissions in hard-to-abate sectors.”
            Real-World Case Studies
            🇸🇪 Sweden: HYBRIT
            World’s first green steel project using hydrogen.
            Cuts 90% CO₂ emissions compared to traditional steel.
            Volvo already uses this steel in trucks.
            🇯🇵 Japan: Hydrogen Society Vision
            200,000+ hydrogen-powered fuel cell homes.
            100+ hydrogen fueling stations.
            🇺🇸 USA: Hydrogen Hubs & IRA
            $7 billion allocated to regional hydrogen hubs (California, Texas, Midwest).
            Private giants like Plug Power and Air Products scaling gigawatt-level plants.
            🇮🇳 India: Green Hydrogen Mission
            5 MMT target by 2030.
            Focus on fertilizers, steel, and mobility.
            Potential to export to Japan and EU — positioning India as Asia’s green fuel hub.
            The Bigger Picture: Beyond Efficiency
            Critics often argue hydrogen is “inefficient” — true if you look only at energy conversion.
            But systems-level efficiency — considering storage, transport, and grid stability — tells a different story in near future.
            Hydrogen allows renewables to scale beyond intermittency, provides energy storage at continental levels, and decarbonizes industries electricity can’t touch.
            That’s not inefficiency — that’s completeness.
            “Hydrogen isn’t competing with renewables — it’s completing the clean economy.”
            In a world racing toward net zero, batteries will electrify our lives, but hydrogen will decarbonize our world.
            Because the ultimate goal isn’t just clean electricity — it’s a clean economy.
            And hydrogen is the molecule that makes that possible.

            Reply

            1. Hydrogen’s role in the long-term energy transition will be crucial, but supplementary. I am of the view that it will account for around 20% of global energy demand, primarily focused on decarbonising hard-to-abate sectors: heavy industry (steel, cement, and chemicals) and long-haul transport (international aviation, shipping, and heavy-duty trucking). The vast majority—the remaining 80% of energy needs— will be met through direct electrification, powered by scalable renewable energy and advanced battery storage.

2. Good discussion on Green Hydrogen. The key for “Green H2” is it generated by Renewable Energy. NOT by fossil fuels. I do acknowledge the fact that it is currently very expensive and even when scaled up in production, it seems to have a narrow limited usage in few sectors. So, until it gets widespread adoption in every sector like automobile, battery Storage, Cooking fuel(if possible), aviation, etc. the costs will remain high for near future. But that should not be a reason not to transition away from the poisonous fossil fuels. Every major energy fuel was expensive in the beginning and the utility bills came down over time. Green H2 as a rocket fuel for space missions is very interesting. Having said that, who knows, maybe this green hydrogen trend could turn out to be only hype and will fizzle out into not much progress.

   Reply

   1. I appreciate your insights. There are no innovations without initial setbacks & failures.
      Hydrogen is definitely going to be the Currency, that will redefine the Clean Economy — despite it’s early hurdles.
      The reasons are:
      Every great technological revolution begins with disbelief.
      When the first steam engines roared, critics called them “inefficient toys.”
      When electricity arrived, it was commented “too dangerous, too costly, too complex.”
      When solar energy was introduced, it was felt “unreliable and expensive.”
      Yet, history didn’t stop for the skeptics.
      Hydrogen today stands exactly at that same inflection point, misunderstood by the cautious, but championed by the visionary.
      Yes, green hydrogen faces challenges — cost, efficiency, infrastructure and scale. But to reduce its destiny to current economics is to misunderstand how technological transformations unfold. Every transformative force in history — from the Internet to electric mobility, began as a prohibitively expensive, inefficient, and seemingly impractical idea. What matters is not where hydrogen is today, but where it will be headed.
      1. Every Revolution starts expensive — Until it doesn’t
      When solar panels first appeared, their cost exceeded US$70 per watt in the 1970s. Today, it’s under US$2.5 — a 97% drop, thanks to scale, innovation and global collaboration.
      Similarly, lithium-ion batteries cost over US$1,200/kWh in 2010; by 2024, they dropped below US$130/kWh.
      Hydrogen’s trajectory is no different.
      Electrolyzer costs are expected to decline another 70–80% by 2035,according to BloombergNEF and IRENA. As manufacturing scales in India, China, Europe, and the Middle East, the cost per kilogram will likely converge toward the US$1–2/kg threshold — the “green parity” zone.
      The question isn’t if — it’s when.
      2. Inefficiency is the Price of Innovation
      Critics often point to electrolysis inefficiencies (60–80%) and hydrogen’s energy losses in storage and conversion. But inefficiency has been the hallmark of every new energy form, before optimization.
      The internal combustion engine converts only 25–30% of fuel energy into motion — yet it powered a century of progress.
      Early solar cells had less than 5% efficiency; today, we are nearing 30% commercial modules.
      Even lithium batteries lose up to 20% energy in charging and discharging, yet they dominate modern mobility.
      Hydrogen’s inefficiency is not a dead end — it’s a design challenge, not a destiny. With innovations like high-temperature solid oxide electrolyzer, AI-based grid management, and ammonia-based hydrogen carriers, overall system efficiency will improve dramatically over the next decade.
      3. Infrastructure Challenges are Opportunities in Disguise
      Building hydrogen pipelines, refueling hubs, and electrolyzer clusters, at present, is capital-intensive — yes. But this investment represents the foundation of a trillion-dollar energy transition economy.
      When the oil era began in the 20th century, global powers spent decades and trillions laying down refineries, pipelines, and ports. Hydrogen demands the same courage — but offers far cleaner returns.
      Reliance, Adani, NTPC, and L&T are already aligning with global giants like Air Products, BP, and TotalEnergies to create integrated hydrogen ecosystems.
      Each electrolyzer plant, each hydrogen corridor, each pilot refinery is a strategic foothold in the next energy economy.
      4. Renewable Energy Bottlenecks are Temporary — Integration is the Key
      It’s true that green hydrogen depends on abundant renewable power. But India’s solar and wind potential is enormous & technically feasible for their capacity enhancement.
      Hydrogen can act as the flexible battery for this renewable surge — absorbing surplus power during off-peak hours and releasing energy when the grid needs it most.
      In fact, hydrogen solves one of renewable energy’s biggest problems — storage.
      It can store energy for months, unlike batteries that discharge within hours or days. That’s why nations like Japan, Germany and Saudi Arabia view hydrogen not as competition to renewables but as their backbone.
      5. Hydrogen: The Strategic Bridge for Hard-to-Abate Sectors
      While battery electrification suits cars or homes, it struggles with heavy industries, aviation, shipping, and fertilizer production. Here, hydrogen is irreplaceable.
      Steel: Companies like ArcelorMittal, JSW, and Tata Steel are piloting hydrogen-based direct reduction plants.
      Shipping: Maersk and BP are investing in green methanol and ammonia.
      Aviation: Airbus plans its first hydrogen-powered commercial aircraft by 2035.
      Fertilizers: Green ammonia will power India’s agricultural backbone, replacing grey hydrogen used today.
      These aren’t hypotheticals — they are the early footprints of a coming energy order.
      6. Environmental Payback outweighs the Initial Cost
      Every kilogram of green hydrogen replaces nearly 10 kg of CO₂ emissions from grey hydrogen. At scale, the climate payoff is monumental.
      If India achieves just 5 MMTPA of green hydrogen by 2030, it could cut 50 million tonnes of CO₂ annually — equivalent to removing 11 million cars from the road every year.
      Hydrogen’s water consumption (9 liters/kg) is real, but manageable — especially with sea-water electrolysis and wastewater recycling technologies already being tested.
      7. The Long Game: From Experimental to Inevitable
      No new energy system becomes dominant overnight. Oil took five decades to replace coal.
      Solar took 30 years to become mainstream.
      Hydrogen will likely follow a similar arc — but with far more urgency and global coordination.
      By 2040, green hydrogen will be where solar was in 2010 — past its teething phase, entering exponential growth. By 2050, it could power 20–25% of the global energy mix, according to IEA and McKinsey projections.
      The world’s biggest economies — EU, Japan, the U.S., India, China, and the Middle East — are not investing billions for symbolism. They see hydrogen as the next economic engine that will replace oil not just in fuel tanks, but in geopolitical power structures. Hydrogen will reshape geopolitical power by reducing dependence on oil-rich nations.
      The Verdict: Hydrogen is the Currency of Courage
      Hydrogen’s journey will be turbulent. It will stumble, evolve and reinvent itself — as every great disruptor has. But that’s exactly why it will endure.
      Today’s inefficiencies are tomorrow’s breakthroughs.
      Today’s costs are tomorrow’s competitiveness.
      Today’s skepticism is tomorrow’s proof.
      Hydrogen is not merely a fuel — it’s the currency of courage, innovation, and the clean economy’s future.
      As we stand at the edge of the energy revolution, the real question is not whether hydrogen will lead the clean economy —
      but whether we have the vision to invest in it before it’s too late.

      “Every revolution looks impossible at the start — until the first few believers make it inevitable. Hydrogen is that belief. The world doesn’t need another fuel; it needs another future. And that future runs on hydrogen.”

      So only “From energy titans to tech conglomerates, global giants are betting billions & laying the groundwork for trillions — on one conviction: that hydrogen will fuel the next great industrial revolution.”

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