Green hydrogen — produced through electrolysis powered by renewable energy — is positioned as a key decarbonisation pathway for hard-to-abate sectors: steel, chemicals, heavy transport, and shipping. But the gap between hydrogen’s promise and its current economics remains wide.
Production costs for green hydrogen are approximately $4–$7/kg, well above the $1–$2/kg at which it becomes competitive with grey hydrogen (produced from natural gas). Cost reductions depend on cheaper electrolysers, lower renewable electricity prices, and economies of scale — all of which are progressing but slowly.
India’s National Green Hydrogen Mission targets 5 million tonnes of annual production by 2030, with incentives for electrolyser manufacturing and hydrogen use in industry. Qatar is exploring blue hydrogen (with carbon capture) as a near-term alternative. The UK’s Hydrogen Strategy supports both green and blue pathways.
RSustain’s energy advisory covers hydrogen readiness assessments for industrial clients. We help companies evaluate whether hydrogen is the right decarbonisation pathway for their specific processes, model the economics under different policy scenarios, and design implementation roadmaps.
The hydrogen economy will arrive — but not uniformly. Some applications (ammonia production, steel) will adopt hydrogen early; others (heating, light transport) will likely be served by electrification. Companies need technology-neutral analysis, not hydrogen evangelism.