Reshaping the energy landscape: green hydrogen as the emerging alternative

Climate change is indifferent to economic pressures or political agendas. As the crisis intensifies, so too does the urgency, and the global momentum, to take meaningful action. This moment leaves the global energy sector in a state of reflection and finds itself at a pivotal inflection point. Carbon-neutrality is no longer a long-term ambition, but a present-day imperative. Amid growing concerns over energy security, industrial emissions, and environmental degradation, hydrogen has emerged as a compelling and versatile clean energy carrier. Green hydrogen, produced via electrolysis powered by renewable sources, is increasingly seen as a key enabler of a sustainable, low-carbon economy.

Hydrogen has several distinct advantages that make it well suited to support decarbonization initiatives across multiple sectors. It can be used to store excess renewable electricity, power zero-emission fuel cells, generate electricity, produce carbon neutral fuel and thus replace fossil fuels in industrial processes. It also has the potential to address one of the most difficult challenges in the energy transition: reducing emissions from hard-to-abate sectors such as heavy transport and industrial manufacturing.

Hydrogen is classified by its method of production:

Grey hydrogen is produced from natural gas using steam methane reforming, a process that emits significant quantities of CO₂. Blue hydrogen is generated using the same method as grey hydrogen but incorporates carbon capture and storage (CCS) to reduce net emissions. Green hydrogen is produced via electrolysis using electricity generated from renewable sources (e.g., solar or wind), resulting in zero emissions. It is the cleanest and most sustainable form of hydrogen, and the long-term focus to reach carbon neutrality. As economies continue to shift away from fossil fuels, the market is increasingly orienting itself toward green hydrogen as the gold standard in clean energy innovation.

Hydrogen’s broad applicability makes it uniquely positioned to play a central role in the new energy landscape. Its use cases span four main areas:

1. Transportation

Fuel cell electric vehicles (FCEVs) powered by hydrogen offer a viable solution for decarbonizing medium- and heavy-duty transport. Unlike battery-electric vehicles, FCEVs provide longer range and faster refueling—making them well-suited for buses, trains, long-haul trucks, and fleet vehicles.

2. Power generation

Hydrogen can be combusted in turbines to generate electricity or used in stationary fuel cells for decentralized power applications. As renewable penetration increases, hydrogen can provide essential flexibility and reliability to stabilize grid operations.

3. Energy storage

One of hydrogen’s most strategic advantages lies in its ability to act as a seasonal energy storage medium. Excess renewable energy generated during periods of low demand can be converted into hydrogen and stored for use during peak periods, helping to address the volatility of renewables.

4. Industrial decarbonization

Industries such as steel production, ammonia synthesis, and methanol manufacturing are major emitters of CO₂. Green hydrogen can serve as a clean feedstock, replacing carbon-intensive fuels and chemical inputs in these foundational industrial processes.

The global hydrogen market was valued at $204.5 billion in 2024, and current projections suggest a compound annual growth rate (CAGR) of 12.2% through 2034. This growth is driven by increased demand for clean alternatives, evolving policy landscapes, and technological advancements.

Source: https://www.gminsights.com/industry-analysis/hydrogen-market 

Several regions are actively shaping the future of the hydrogen economy:

• Europe: Ambitious decarbonization targets and regulatory mechanisms such as the EU Green Deal are pushing hydrogen innovation and infrastructure deployment across member states.

• Asia-Pacific: Countries such as Japan and South Korea have national hydrogen strategies focused on scaling both supply and demand.

• North America: Canada is investing in regional hydrogen hubs and clean hydrogen tax incentives.

• China: Rapidly emerging as a dominant player in electrolyzer manufacturing, China is targeting global competitiveness by offering cost-effective hydrogen technologies and pursuing localization strategies such as technology licensing and joint ventures to meet their own targets and to comply with European content regulations.

Persistent Challenges in Scaling Green Hydrogen

Despite the compelling potential of hydrogen, several significant barriers continue to hinder its widespread deployment:

1. High production costs

Green hydrogen remains costly to produce due to the price of renewable electricity and the capital intensity of electrolysis. In many regions, it is still significantly more expensive than hydrogen produced from fossil fuels.

2. Technological barriers

The hydrogen sector is still relatively immature. Key technologies such as electrolyzers are in the early stages of industrialization, with limited manufacturing capacity and fragmented supply chains. As was the case in the early days of solar and wind, the hydrogen sector must overcome steep learning curves and bottlenecks in component sourcing and systems integration. However, the solar industry proves that rapid technological advancements and economies of scale could dramatically lower costs over time, paving the way for green hydrogen to become a competitive clean energy solution.

3. Infrastructure deficiencies

The production, storage, and distribution of green hydrogen often requires specialized equipment and infrastructure. In most markets, pipelines, refueling stations, and storage terminals are underdeveloped, making it difficult to create reliable supply chains at scale. However, many countries are exploring ways to repurpose existing natural gas pipelines for hydrogen distribution, either through blending or full conversion.

4. Regulatory fragmentation

Policy uncertainty continues to disrupt momentum. Some governments have delayed or scaled back hydrogen incentive programs. For instance, the suspension of funding under the U.S. Inflation Reduction Act (IRA) and Infrastructure Investment and Jobs Act (IIJA) signaled a shift toward prioritizing fossil fuel production. As a result, interest has pivoted in some cases from green hydrogen to blue hydrogen, further slowing the energy transition.

To unlock hydrogen’s full potential, governments, industry, and the research community must work together to address these challenges:

Drive cost reductions through innovation

Ongoing advancements in electrolyzer technology, improvements in total cost of ownership, and economies of scale can significantly reduce the production cost of green hydrogen.

Invest in infrastructure development

Governments and private investors must fund the construction of hydrogen hubs, transport pipelines, and refueling networks to enable market accessibility and demand growth. Alternatively, hydrogen can be converted into ammonia or synthetic fuels, allowing the use of today’s existing infrastructure for storage, transport, and end-use applications.

Establish stable and harmonized regulatory frameworks

Clear, long-term policy commitments, subsidy schemes (such as the UK’s low-carbon hydrogen subsidy), and standards harmonization will provide the market certainty required to unlock investment.

Promote public-private partnerships

Partnerships between governments, utilities, technology providers, and industrial users are crucial to de-risk large-scale hydrogen projects and accelerate commercialization.

Bekaert is contributing to the future of green hydrogen as a leading supplier of Porous Transport Layers (PTL), which are essential components in water electrolyzers. In collaboration with Toshiba, Bekaert is also commercializing advanced Membrane Electrode Assemblies (MEA) that reduce iridium usage by up to 90%, significantly lowering costs and enhancing the scalability of green hydrogen. 

With a legacy of expertise in materials science, steel transformation, and coating technologies, Bekaert is uniquely positioned to help scale the hydrogen economy. The company’s contributions are not limited to PTLs. Bekaert also develops critical components for offshore wind mooring systems and next-generation electrical transmission networks, further supporting the broader energy transition.

By 2034, the hydrogen market is expected to exceed $603.3 billion in value. Green hydrogen will play a central role in achieving net-zero carbon emissions, securing energy independence, and building more resilient supply chains. As energy systems decarbonize and diversify, hydrogen stands out as both a climate solution and an industrial growth opportunity.

Bekaert envisions a future where clean hydrogen is integrated seamlessly into the global energy ecosystem. As a trusted partner with a proven track record, Bekaert is a market leader in steel wire transformation and coating technologies and applications beyond steel to create new solutions, such as Currento, to support the necessary energy transition that will shape the next generation of the energy infrastructure. 

Source: https://www.gminsights.com/industry-analysis/hydrogen-market 

The future of green hydrogen depends on collective action. When policymakers create enabling frameworks, developers and infrastructure providers scale with purpose, investors fuel innovation, and industry leaders join forces, real transformation happens. Together, we can create a better tomorrow.