Technology
Green hydrogen is hydrogen gas produced by splitting water using renewable electricity (solar, wind, or hydroelectric power) through electrolysis. Unlike gray hydrogen (produced from natural gas), green hydrogen produces zero carbon emissions and is a clean fuel for decarbonizing hard-to-electrify sectors like heavy industry, shipping, and aviation. Green hydrogen is an emerging clean energy opportunity with significant investment potential. The U.S. Inflation Reduction Act (IRA) provides a $3/kg production tax credit (45V) for green hydrogen, making projects economically viable. Green hydrogen projects require renewable electricity as input, creating synergies with solar and wind investments. As green hydrogen technology scales and costs decline, it will become a critical component of the energy transition, particularly for industrial decarbonization. For investors, green hydrogen represents a next-generation renewable energy opportunity with strong policy support and long-term growth potential.