New Energy Frontiers
Grey, Blue and Green Hydrogen
How hydrogen is made today from fossil fuels, what distinguishes grey, blue and green hydrogen, and why green hydrogen is still expensive.
Hydrogen is already used widely in industry, but most is made from fossil fuels.
Colours of hydrogen
- Grey: made from natural gas or coal, releasing CO2. Most hydrogen today is grey.
- Blue: made from fossil fuels with carbon capture to store emissions.
- Green: made by electrolysis, splitting water using renewable electricity, with no CO2.
India’s use
India uses several million tonnes of hydrogen a year, mainly in refineries and fertiliser plants, almost all grey.
Why green is costly
- Electrolysers are expensive.
- It needs lots of cheap renewable power.
- Storage and transport are difficult.
Green hydrogen has cost roughly 3 to 5 dollars per kg or more, versus about 1 to 2 dollars for grey.
Falling costs
As renewable power and electrolysers get cheaper, green hydrogen costs are expected to fall. India aims to be among the lowest-cost producers thanks to cheap solar.
A refinery uses grey hydrogen made from gas. Replacing it with green hydrogen would cut emissions but currently cost more per kg.
Most hydrogen today is grey, made from fossil fuels.
- Grey hydrogen comes from fossil fuels; blue adds carbon capture.
- Green hydrogen uses renewable electricity.
- India uses hydrogen mainly in refineries and fertilisers.
- Green hydrogen costs more but prices are expected to fall.
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