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North America’s Green Hydrogen Challenge: Defining Standards for Sustainable Production

North America Green Hydrogen Market

Insights

North America's green hydrogen sector is rapidly evolving, driven by the need for sustainable energy solutions. Green hydrogen, produced through electrolysis using renewable electricity, offers a low-carbon alternative to traditional fuels.

Green Hydrogen: Paving the Way for a Cleaner Planet

Green hydrogen is referred to as hydrogen produced by electrolysis, a process that uses renewable electricity to divide water into hydrogen and oxygen. This leads to extremely low or zero carbon emissions. Emerging green hydrogen plans and regulations vary significantly on their definitions of "renewable energy," the boundaries of the carbon accounting system, the emission thresholds at which hydrogen is considered green, and the feedstocks and production technologies used. This lack of standards undermines efforts to increase the usage of green hydrogen in North America.

Figure 1: Green Hydrogen: Production, Conversion, and End Uses in the Energy System

Figure 1: Green Hydrogen: Production, Conversion, and End Uses in the Energy System

In addition, green hydrogen has the potential to serve as an unparalleled solution for substituting fossil fuels in sectors that are particularly challenging to decarbonize, thereby aiding in the efforts to combat climate change.

As the International Energy Agency (IEA) points out, this technique of creating green hydrogen would save the 830 million tons of CO2 emitted each year when this gas is produced using fossil fuels. Similarly, replacing all grey hydrogen in the globe would require 3,000 TWh/year of new renewables, which is similar to Europe's current demand. However, there are some concerns about the viability of green hydrogen due to its high production cost; realistic reservations that will fade as the earth's decarbonisation proceeds and, as a result, renewable energy generation becomes more affordable.

Figure 2:  Projected Global H2 Demand by 2030 (in MMT)

Figure 2:  Projected Global H2 Demand by 2030 (in MMT)

Exploring the Advantages and Disadvantages of Green Hydrogen

According to IRENA's 1.5°C scenario, green and blue hydrogen production should rise to 125 million tonnes per year (Mtpa) by 2030 and 523 Mtpa by 2050. This presents both development opportunities and problems for scaling and adapting manufacturing, infrastructure, and end-use value chains. Green hydrogen offers the following advantages and disadvantages that we should be aware of. Let's go over some of its most key positive aspects:

  • Carbon Neutrality and Sustainability: One of the most noticeable advantages of green hydrogen is its ability to dramatically cut greenhouse gas emissions. Green hydrogen is a carbon-neutral fuel that is produced through the electrolysis process using renewable energy sources and emits no CO2. This advantage significantly helps in addressing climate change, as it offers a way to decarbonize sectors that have been challenging to electrify in the past.
  • Energy Storage: Green hydrogen provides a means of storing renewable energy when solar or wind resources are unavailable. Surplus renewable energy produced during peak generation can be transformed into green hydrogen via electrolysis. The following hydrogen can be efficiently stored for subsequent use. This solution solves one of the most significant obstacles in integrating renewable energy: intermittency, by providing a consistent and predictable energy source.
  • Versatile and Scalable: Green hydrogen's versatility is a significant benefit compared to other renewable energy sources. It is used as a fuel for a variety of applications, including transportation, electricity generation, industrial processes, and heating. The following versatility, along with its potential for scalability, positions it as an attractive option for achieving significant decarbonization across various economic sectors.
  • Economic Opportunities: Investing in green hydrogen infrastructure opens up substantial economic prospects and has the potential to create millions of jobs worldwide. As governments and industry shift to a low-carbon economy, demand for green hydrogen technology and infrastructure is likely to skyrocket. This transition will encourage innovation, attract investments, and boost economic development in industries such as renewable energy and manufacturing.
  • Global Collaboration and Energy Security: The shift to green hydrogen fosters teamwork, collaboration, and energy reliability by reducing dependency on fossil fuels, strengthening geopolitical stability, and eliminating supply distribution hazards.

To sum up, the advantages of green hydrogen are numerous. By embracing green hydrogen and investing in its development, we can accelerate the transition to a cleaner, more resilient energy system for future generations. However, there are certain downsides to employing green hydrogen, which should be considered:

  • High Costs of Green Hydrogen: Energy from renewable sources, which is essential for producing green hydrogen via electrolysis, is more expensive to generate, thereby making hydrogen more expensive to acquire.
  • Energy-Intensive Nature of Green Hydrogen Production: the production of hydrogen, particularly green hydrogen, requires more energy than other fuels.
  • Safety Issues Associated with Green Hydrogen: Hydrogen is a very volatile and combustible material, necessitating stringent safety precautions to prevent leaks and explosions.

Government Initiatives Driving Green Hydrogen Expansion in North America

  • The only utility in New Mexico that is totally solar-powered on sunny days is working toward producing green hydrogen. Kit Carson Electric Cooperative, which serves Taos, Colfax, and Rio Arriba counties, announced in January 2025 that it had received a $231 million grant from the USDA to boost green hydrogen activities. 
  • On March 13, 2024, the United States Department of Energy (DOE) announced 750 USD million in funding for 52 projects in 24 states to substantially cut the cost of clean hydrogen and strengthen American leadership in the rapidly growing hydrogen industry. These initiatives will expand electrolysis technology while also improving the manufacturing and recycling capacities of clean hydrogen systems and components.
  • In September 2023, The United States Department of Energy (DOE) announced 47.7 USD million in financing for 16 research, development, and demonstration (RD&D) programs in 13 states to promote clean hydrogen technology. The selected projects aim to reduce technology costs, improve hydrogen infrastructure, and improve fuel cell performance, supporting DOE's efforts to enable commercial-scale deployment of clean hydrogen, a versatile energy resource with zero or near-zero emissions. 
  • In September 2022, the Government of Newfoundland and Labrador signed a Declaration of Intent with Hamburg, Germany, on collaboration in the field of green hydrogen and hydrogen technology.

Figure 3:  North America: A Key Player with 17% Hydrogen Consumption

Figure 3:  North America: A Key Player with 17% Hydrogen Consumption

Green Hydrogen Developments in North America: Corporate Highlights and Updates

  • In July 2024, 3M made a strategic investment in Ohmium International, a company specializing in electrolyzer systems for green hydrogen production. This investment is part of 3M's ongoing efforts to expand into emerging climate technologies, supporting the transition to a low-carbon economy. 
  • In June 2024, ExxonMobil and Air Liquide reached an agreement to advance the production of low-carbon hydrogen and ammonia at ExxonMobil's facility in Baytown, Texas. This collaboration will facilitate the transportation of low-carbon hydrogen via Air Liquide's established pipeline infrastructure. Additionally, Air Liquide will design and manage four Large Modular Air Separation Units (LMAs) for the plant, providing 9,000 metric tons of oxygen and as much as 6,500 metric tons of nitrogen each day. To reduce the carbon footprint of the project, the LMAs will predominantly utilize low-carbon electricity during their operation.
  • In March 2024, ABB collaborates with Green Hydrogen International on the Hydrogen City project in Texas, which is expected to create 280,000 tons of green hydrogen per year. Hydrogen will be utilized to produce one million tons of green ammonia annually to meet worldwide export demand. The facility will be powered by behind-the-meter solar and onshore wind energy, enabling IRA and RFNBO-compliant manufacturing.

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30 North Gould Street, Sheridan, WY 82801

+1-415-325-5166

63 Fiona Drive, Tamworth, NSW

+61-448-061-727

C130 Sector 2 Noida, Uttar Pradesh 201301

+91-858-608-1494

40th Floor, PBCom Tower, 6795 Ayala Avenue Cor V.A Rufino St. Makati City, 1226.

+63-287-899-028, +63-967-048-3306

6 Gardner Place, Becketts Close, Feltham TW14 0BX, Greater London

+44-753-713-2163

193/26/4 St.no.6, Ward Binh Hung Hoa, Binh Tan District, Ho Chi Minh City

+84-865-399-124