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Glossary · Fuels & hydrogen

Green hydrogen

Hydrogen produced by splitting water in an electrolyser powered by renewable electricity, with near-zero direct CO2 emissions.

Green hydrogen is made by electrolysis: 2 H2O → 2 H2 + O2. Hydrogen carries 33.3 kWh/kg (LHV) or 39.4 kWh/kg (HHV), and splitting water requires at least 39.4 kWh/kg in theory. Real electrolyser systems consume 50–55 kWh/kg, a system efficiency of 60–67% on an LHV basis, plus about 9–10 litres of purified water per kg of H2.

LCOH ≈ (electricity price × 52 kWh/kg) + (annualised capex + O&M) / annual kg produced

Electricity dominates cost: at USD 30/MWh the power component alone is about USD 1.6/kg. With 2024 system capex of USD 1,700–2,500/kW for installed projects outside China (IEA Global Hydrogen Review) and capacity factors of 40–60%, levelised cost is typically USD 4–8/kg, compared with USD 1–2.5/kg for grey hydrogen. Chinese alkaline systems are 50–70% cheaper.

Under EU rules (Delegated Act 2023/1184), renewable hydrogen must meet additionality, temporal correlation (monthly, hourly from 2030) and geographic correlation requirements, and achieve at least 70% lifecycle savings, around 3.4 kg CO2e/kg H2 maximum. Global installed electrolysis capacity was only about 2–3 GW in 2025, far below announced plans. Model costs with the green hydrogen calculator.

Related terms

All terms →
  • Electrolyser

    An electrochemical device that uses electric current to split water into hydrogen and oxygen; the core equipment of green hydrogen production.

  • Blue hydrogen

    Hydrogen produced from natural gas by reforming, with most of the resulting CO2 captured and permanently stored.

  • Grey hydrogen

    Hydrogen made from natural gas by steam methane reforming without carbon capture; the dominant and cheapest production route today.

  • E-fuels (power-to-X)

    Synthetic fuels made from electrolytic hydrogen, sometimes combined with captured CO2 or nitrogen, such as e-methane, e-methanol, e-kerosene and e-ammonia.

  • Ammonia as fuel

    Use of ammonia (NH3), a carbon-free hydrogen carrier, as a fuel for ships, power plants and long-distance hydrogen transport.

  • Fuel cell

    An electrochemical device that converts the chemical energy of hydrogen or another fuel directly into electricity and heat, without combustion.