Green hydrogen: Reassessing priorities for sustainable deployment

Green hydrogen is increasingly promoted as a key pillar in the transition toward decarbonized energy systems. However, its dual role—as both a clean fuel and an essential industrial feedstock—calls for a more differentiated analysis. This study presents a comprehensive techno-economic evaluation of using green hydrogen to fuel a 1 MW combined cycle gas turbine, comparing its performance and lifecycle costs against conventional liquefied natural gas-fired systems and battery energy storage solutions. The findings suggest that, under current technological and economic conditions, hydrogen-fueled power generation faces significant challenges in terms of efficiency and capital recovery, primarily due to low volumetric energy density and substantial conversion losses. In contrast, industrial applications such as ammonia production and low-carbon steelmaking offer contexts in which green hydrogen’s unique properties deliver irreplaceable value. These results indicate that deployment strategies for green hydrogen may benefit from prioritizing high-impact industrial sectors, while fuel-related applications should be approached selectively, with careful consideration of infrastructure demands and opportunity costs. This work aims to support more balanced and pragmatic hydrogen policies that align with both long-term climate goals and near-term economic realities.