What is Green Hydrogen: How It’s Made & Why It Matters

By Avaada

Last Updated: June 3, 2026

What is Green Hydrogen - Avaada Group

As countries look for reliable ways to cut down carbon emissions, green hydrogen is becoming a vital clean fuel for global decarbonization. Manufacturing hydrogen has depended heavily on fossil fuels, which emit large amounts of carbon dioxide. Today, global energy systems are shifting toward cleaner alternatives. According to the International Energy Agency (IEA), global hydrogen demand reached nearly 100 million tonnes (Mt) in 2024, showing how much modern industry relies on this gas and why cleaning up its production is so important.


India is rapidly building its own clean energy infrastructure to achieve energy independence. Government policies are expanding the country’s green capacity, leading to historic growth in renewable energy in India.

Understanding the Basics of Green Hydrogen

Green hydrogen is a clean gas produced by splitting water molecules into hydrogen and oxygen. The entire process is powered by green energy sources such as solar, wind, and hydropower. Since it relies entirely on electricity from renewable sources, the production process emits no direct greenhouse gases into the atmosphere.


Hydrogen does not exist freely in nature. It must be separated from other compounds, such as water or methane. Depending on the energy source used to split these elements, hydrogen is divided into different color-coded groups. Among all available types of hydrogen, the green category is the cleanest because it avoids fossil fuels entirely.

Types of Hydrogen and Environmental Impact

Reviewing the different types of hydrogen helps explain why moving away from traditional production methods is necessary.

 

Hydrogen Type

Production Source & Process

Carbon Emissions

Green

Water electrolysis powered by solar or wind energy

Zero to very low

Blue

Natural gas combined with carbon capture systems

Moderate

Grey

Natural gas without any carbon capture

High

Brown/Black

Gasification of coal

Very high

Pink

Water electrolysis powered by nuclear energy

Low

Currently, grey hydrogen dominates global production. However, as international climate goals draw closer, the debate over green vs blue hydrogen is gaining attention. While blue hydrogen captures some of its emissions, it still relies on finite fossil fuels. Green alternatives offer a completely sustainable, long-term pathway.

 

How is Green Hydrogen Produced?

Understanding how green hydrogen is produced requires looking at a straightforward chemical process called electrolysis. This process takes place inside an industrial machine known as an electrolyzer, which passes a strong electric current through purified water. This current splits the water into its core elements: Hydrogen gas and Oxygen gas.


The entire green hydrogen production chain follows four clear steps:

 

  • Generating Clean Electricity: Collecting solar or wind power via large renewable energy farms.
  • Water Purification: Cleaning the water thoroughly so the electrolyzer can run efficiently without mineral build-up.
  • Electrolysis: Splitting the purified water using the collected renewable electricity.
  • Storage and Distribution: Compressing or liquefying the hydrogen gas so it can be safely stored or transported through pipelines and tankers.

According to the World Nuclear Association, producing one kilogram of clean hydrogen requires roughly 50-55 kilowatt-hours (kWh) of electricity and about 9 liters of water. To meet these large energy needs, the Avaada Group is developing extensive utility-scale solar projects to deliver the steady, low-cost power required for mass production.

Industrial Uses of Hydrogen

The actual uses of hydrogen are expanding rapidly as heavy industries seek practical ways to reduce their environmental impact. The main applications include:

 

  • Chemicals and Fertilizers: Hydrogen is a key ingredient in the production of ammonia, an important component of agricultural fertilizers.
  • Refining Petroleum: Oil refineries use massive amounts of hydrogen to remove sulfur from crude oil and create cleaner transport fuels.
  • Steelmaking: Replacing coal with clean hydrogen in Direct Reduced Iron (DRI) plants offers a path to producing green steel.
  • Energy Storage: Excess solar power generated during the day can be turned into hydrogen gas, acting as a clean battery that can generate electricity later.

Green Hydrogen India: National Strategy and Targets

The roadmap for green hydrogen in India is supported by clear government action. The Union Cabinet approved the National Green Hydrogen Mission, overseen by the Ministry of New and Renewable Energy (MNRE). According to official statements from the Press Information Bureau (PIB), the government has set aside a total financial outlay of ₹19,744 Crore up to FY 2029-30 to scale up this system. By the year 2030, this national mission aims to achieve the following targets:

 

  • Developing a domestic production capacity of at least 5 million metric tonnes (MMT) of green hydrogen per year.
  • Adding about 125 gigawatts (GW) of associated renewable energy capacity across the country.
  • Attracting over ₹8 Lakh Crore in total investments.
  • Creating more than 6 Lakh direct and indirect clean energy jobs.
  • Reducing fossil fuel imports by over ₹1 Lakh Crore, which strengthens national energy security.
  • Preventing nearly 50 MMT of annual greenhouse gas emissions.

This mission is transforming the landscape of renewable energy in India. Private enterprises like the Avaada Group are leading the way by developing integrated clean ammonia and renewable energy systems to position India as a global exporter of clean fuels.

Green Hydrogen vs Blue Hydrogen: Key Differences

When looking at long-term sustainability, comparing green hydrogen vs blue hydrogen highlights the clear environmental benefits of choosing renewable options:

 

Feature

Green Hydrogen

Blue Hydrogen

Primary Feedstock

Purified water

Natural gas (Methane)

Energy Source

Solar, wind, or hydro power

Fossil fuels with carbon capture

Fossil Fuel Dependence

None

High

Long-term Sustainability

High (uses unlimited resources)

Medium (limited by gas reserves)

Conclusion

As the world moves toward cleaner energy systems, green hydrogen is emerging as a powerful solution to reduce emissions in industries that are difficult to decarbonize. From fertilizer production and steel manufacturing to clean transportation and energy storage, its applications are expected to expand significantly in the coming years. With strong policy support, rising renewable capacity, and increasing private-sector investment, India is steadily positioning itself as a global leader in the clean-fuel economy. Companies like Avaada Group are playing an important role in this transition by building integrated renewable energy and green hydrogen projects that support India’s long-term sustainability and energy security goals.


Explore Avaada Group’s clean energy initiatives to learn how the company is contributing to a greener and more self-reliant future.

FAQs

What is green hydrogen?

Green hydrogen is a clean fuel produced using renewable electricity (such as solar or wind) to split water into hydrogen and oxygen. It creates zero carbon emissions during production.

Green hydrogen is produced via water electrolysis, in which an electrolyzer uses clean electricity to split water into hydrogen and oxygen gases.

The main uses of hydrogen are in petroleum refining, agricultural fertilizer production, chemical manufacturing, and green steel production.

Green hydrogen offers a way to eliminate emissions from heavy industries such as steel production and heavy transport, where standard electric batteries are insufficient.

Under the National Green Hydrogen Mission, India targets a production capacity of 5 million metric tonnes (MMT) per year by 2030, supported by 125 GW of new renewable energy capacity.

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