Green Hydrogen Large Scale Industrial Use - When will Large Scale Use of Green Hydrogen Happen for Industries and in What Forms ? - India Renewable Energy Consulting – Solar, Biomass, Wind, Cleantech
Select Page

Themes and Topics

  • electrolyzer technologies
  • European Green Deal
  • Green hydrogen production
  • hydrogen boilers
  • hydrogen furnaces
  • hydrogen refueling stations.
  • Nikola Corporation
  • SSAB
  • Thyssenkrupp
  • US Infrastructure Bill
  • When Will Large Scale Use of Green Hydrogen Happen for Industries and in What Forms ?

    The large-scale use of green hydrogen for industries is anticipated to become more prevalent within the next decade, with significant growth expected post-2030. This timeline aligns with global efforts to reduce carbon emissions and the increasing competitiveness of green hydrogen production costs as renewable energy prices continue to fall and electrolyzer technologies improve. Key industries likely to adopt green hydrogen include steelmaking, chemical production, and refining, where green hydrogen serves both as a feedstock and a means to reduce carbon emissions.

    Emerging Uses of Green Hydrogen for Industrial Feedstock

    • Chemical Industry: Green hydrogen is crucial for producing green ammonia and methanol, which are key feedstocks for fertilizers and chemicals. The shift from gray to green hydrogen in ammonia production is particularly significant due to the high carbon footprint of conventional ammonia production processes.
    • Steel Industry: Green hydrogen is emerging as a promising alternative to coal in the steelmaking process. By replacing coking coal with hydrogen in direct reduction processes, the steel industry can significantly reduce its carbon emissions. Companies like SSAB in Sweden, Thyssenkrupp in Germany, and several others are pioneering this transition.

    Niche Industrial Uses of Green Hydrogen

    • Glass Manufacturing: Hydrogen can serve as a reducing agent and a heat source in glass production, potentially reducing the industry’s carbon footprint.
    • Electronics Manufacturing: High-purity green hydrogen is used in the electronics industry for manufacturing and processing semiconductor materials, offering a cleaner alternative to conventional hydrogen production methods.
    • Food Industry: Hydrogen is used in hydrogenation processes in the food industry, for example, to convert unsaturated fats to saturated fats and oils. Using green hydrogen for these processes could reduce the carbon footprint of food production.

    Hydrogen Boilers and Furnaces

    • Hydrogen Boilers for Heating: Hydrogen boilers are being developed and tested as a direct replacement for natural gas boilers. These boilers can combust hydrogen to produce heat without CO2 emissions, making them a viable green alternative for residential and industrial heating. Trials are underway in various countries, including the UK, where projects like HyDeploy are exploring the blending of hydrogen with natural gas in existing gas networks.
    • Hydrogen Furnaces for Industrial Heat: In industries that require high-temperature heat, such as cement and glass manufacturing, hydrogen furnaces can replace fossil fuel-based furnaces. Hydrogen combusts to produce high-temperature heat with water vapor as the only emission, offering a pathway to decarbonize industrial heating processes.

    The large-scale use of green hydrogen across these applications is dependent on the continued decrease in production costs, the development of hydrogen infrastructure, and supportive policies and regulations. Government initiatives, such as the European Green Deal and the US Infrastructure Bill, are providing funding and support for hydrogen projects, accelerating the transition towards green hydrogen use in industries. As these trends continue, we can expect green hydrogen to play a pivotal role in decarbonizing heavy industries and contributing to the achievement of global climate goals.

    Key Government Policies

    a) European Union (EU):

    • The EU’s Hydrogen Strategy aims to install at least 6 gigawatts (GW) of renewable hydrogen electrolysers by 2024 and 40GW by 2030.
    • The European Commission’s €750 billion Recovery Plan includes funding for hydrogen projects.
    • Germany’s National Hydrogen Strategy allocates €9 billion for hydrogen projects by 2030.

    b) United States:

    • The Biden administration’s Infrastructure Bill includes $8 billion for hydrogen projects.
    • The Department of Energy’s Hydrogen Program aims to reduce the cost of clean hydrogen production to $2 per kilogram by 2030.

    c) Japan:

    • Japan’s Basic Hydrogen Strategy aims to reduce the cost of hydrogen to around $3 per kilogram by 2030.
    • The Japanese government plans to install 320 hydrogen refueling stations by 2025.

    Specific Challenges

    a) Cost:

    • Electrolysis-based green hydrogen production is currently expensive, with costs around $6-$8 per kilogram.
    • Initial infrastructure costs for hydrogen refueling stations are high, limiting their widespread deployment.

    b) Scalability:

    • Scaling up green hydrogen production to meet industrial demand requires significant investments in infrastructure and technology.
    • Developing efficient transportation and storage solutions for hydrogen remains a challenge.

    c) Competition with Grey Hydrogen:

    • The current low cost of grey hydrogen (produced from fossil fuels) makes it challenging for green hydrogen to compete in the market.
    • Carbon pricing mechanisms are essential to incentivize the transition to green hydrogen.

    Case Studies

    Case Study: The H2Future Project (Austria)

    • Project Overview: The H2Future project, located in Austria, is one of Europe’s largest green hydrogen initiatives.
    • Technology: It utilizes renewable electricity from a nearby hydroelectric power plant to power a 6-megawatt electrolyzer for hydrogen production.
    • Key Partnerships: The project involves partnerships between energy companies (Verbund, OMV), research institutions, and government agencies.
    • Application: The produced green hydrogen is used for industrial applications, including steel production and fuel for heavy-duty vehicles.
    • Impact: By replacing fossil fuels with green hydrogen, the project aims to reduce carbon emissions in the steel industry and contribute to Austria’s climate goals.

    Case Study: Fukushima Hydrogen Energy Research Field (Japan)

    • Project Overview: The Fukushima Hydrogen Energy Research Field is Japan’s largest green hydrogen production facility.
    • Technology: It integrates solar power and electrolysis to produce green hydrogen, utilizing excess renewable energy.
    • Government Support: The project receives funding and support from the Japanese government as part of its renewable energy initiatives.
    • Application: The produced hydrogen is used for various applications, including fuel for hydrogen-powered vehicles and energy storage.
    • Community Impact: The project contributes to the revitalization of the Fukushima region following the 2011 nuclear disaster by promoting renewable energy and creating job opportunities in the hydrogen industry.


    • “Hydrogen will not appear tomorrow because of its cost. It is also difficult to transport. Perhaps in 2040, we will be making steel using hydrogen. By that time, the technology will have developed and the market will insist on it,“ explained Rolando Paolone, the CEO of Danieli Group.,
    • Paul Martin, a Toronto-based chemical engineering consultant and member of the Hydrogen Science Coalition, disagrees. “A low-efficiency approach can work, but only if it’s low capital cost,” he said. “The problem with the green hydrogen thing is that the capital cost is high and the efficiency is low. So as a consequence, the resulting energy is very expensive.”
    • “Hydrogen is already used in various sectors and could potentially replace fossil energy in the future. While the cost of production remains high, it has the potential to contribute to reducing greenhouse gas emissions by at least 10-15% by 2030.” – Dr. Pradeep Haldar, director of sustainable business practices at the Patel College of Global Sustainability, University of South Florida.
    • “I would say petrochemicals is a really large first-mover market, as is industrial chemicals, and as are the steel industries. Those three have enough captive demand to drive the green hydrogen business for decades, just those three industry sectors. Literally that’s a 50-year run to substantially decarbonise those three industries with green hydrogen”, said Verdagy CEO Marty Neese.


    In conclusion, the widespread adoption of green hydrogen in industries is imminent, driven by robust government policies and technological advancements. Initiatives like the EU’s Hydrogen Strategy and the U.S. Infrastructure Bill provide crucial support and funding. Despite challenges, such as production costs and scalability issues, ongoing innovations are overcoming these hurdles. Successful case studies, like Austria’s H2Future project and Japan’s Fukushima Hydrogen Energy Research Field, demonstrate the feasibility of green hydrogen, paving the way for its large-scale utilisation.

    About Narasimhan Santhanam (Narsi)

    Narsi, a Director at EAI, Co-founded one of India's first climate tech consulting firm in 2008.

    Since then, he has assisted over 250 Indian and International firms, across many climate tech domain Solar, Bio-energy, Green hydrogen, E-Mobility, Green Chemicals.

    Narsi works closely with senior and top management corporates and helps then devise strategy and go-to-market plans to benefit from the fast growing Indian Climate tech market.

    Know More...Connect with our director

    Copyright © 2024 EAI. All rights reserved.