The Truth About Hydrogen

This briefing by RMI argues that hydrogen is a critical complement to electrification in the energy transition, particularly for hard-to-abate industrial sectors and heavy transport. It outlines the different production methods—distinguishing between grey, blue, and green hydrogen—and highlights the potential for green hydrogen to drive renewable energy demand and decarbonize industrial value chains.

• The transition to low-carbon transport and industry requires a combination of electrification and fuel-based options rather than a single winning technology. Hydrogen serves as a key complement to electrification, offering specific advantages such as longer range for vehicles; for instance, hydrogen fuel cell buses typically have a range of approximately 500 km, compared to 200 km for electric buses.
• Global hydrogen production grew from approximately 40 million tons in 2005 to 60 million tons at the time of writing. The market value was estimated at $103 billion in 2017 and is projected to reach $207 billion by 2026, with a compound annual growth rate of 8.1 percent. The Energy Transition Commission (ETC) suggests the market could reach between 425 and 650 million tons per year by 2050.
• Hydrogen is produced via four main commercial sources: steam methane reformation (SMR), oxidation, gasification, and electrolysis. SMR, oxidation, and gasification rely on fossil fuels. 'Grey hydrogen' refers to SMR without carbon capture, while 'blue hydrogen' includes carbon capture and storage. 'Green hydrogen' is produced via electrolysis powered by renewable energy and is the only non-fossil fuel method, though it currently accounts for only 4 percent of global production.
• Hydrogen can decarbonize industrial value chains and hard-to-abate sectors, which represent 40 percent of global greenhouse gas emissions. Applications include powering on-site haul trucks in mining, providing heat for processes, and replacing coking coal in steelmaking to reduce iron ore. Additionally, electrolyzers can capture curtailed renewable energy to provide a callable power resource or utilize existing natural gas infrastructure.
• Current global hydrogen production is dominated by natural gas (48 percent), oil (30 percent), and coal (18 percent). In the United States, CO2 emitted from SMR hydrogen production accounts for approximately 6 percent of total greenhouse gas emissions from petroleum refineries, and can reach up to 25 percent for an individual refinery.

APA

RMI (2019). The Truth About Hydrogen. https://rmi.org/resources/the-truth-about-hydrogen/

Chicago

RMI. The Truth About Hydrogen. 2019. https://rmi.org/resources/the-truth-about-hydrogen/.

Wikipedia

{{cite report |author=RMI |title=The Truth About Hydrogen |date=20 August 2019 |url=https://rmi.org/resources/the-truth-about-hydrogen/ |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{rmi2019truth, author = {{RMI}}, title = {{The Truth About Hydrogen}}, institution = {RMI}, year = {2019}, month = aug, url = {https://rmi.org/resources/the-truth-about-hydrogen/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }