Green hydrogen: a key driver of the energy transition

Green hydrogen is emerging as a key energy vector to partially replace fossil fuels in sectors where electrification is not a viable alternative, such as heavy industry, maritime transport or aviation. In this way, it contributes to the decarbonisation of the global economy, as it generates no CO₂ emissions during either its production or use.

Hydrogen is the lightest chemical element and also the most abundant in the universe. As it is not found in its pure state but combined with other elements, it must be separated through industrial processes to be used as an energy source. The method used largely determines its environmental impact.

Green hydrogen is produced through water electrolysis, a technique that separates hydrogen and oxygen molecules using electricity. In this case we are referring to electrolytic hydrogen, although green hydrogen can also be produced from biological sources, such as biomethane or through biomass gasification. When electricity comes from renewable sources such as solar or wind, the resulting hydrogen is completely free of pollutant emissions. This makes it the most sustainable form of hydrogen and a strategic alternative to grey or blue hydrogen, as well as to other fossil fuels, particularly in hard-to-electrify sectors such as heavy industry or long-distance transport.

As such, green hydrogen stands out as the cleanest energy vector currently available, capable of generating heat (through combustion) or electricity (via a fuel cell) without producing harmful emissions. Green hydrogen is also expected to play a key role as feedstock for the production of synthetic fuels known as e-fuels, such as e-methanol, e-ammonia or e-SAF.

What are the benefits of green hydrogen?

The use of green hydrogen offers a wide range of environmental, economic and strategic advantages:

100% sustainable: It generates no pollutant emissions during production or use, directly supporting decarbonisation efforts.

Energy independence: It can be produced anywhere in the world with the right infrastructure, strengthening the energy security of countries and companies.

Storage capacity: In addition to being a virtually inexhaustible energy source, it can be stored at scale and used when demand requires it, helping to stabilise power grids.

Versatility: It can be transformed into electricity or synthetic fuels, expanding its applications across a variety of industrial and commercial sectors.

Applications of green hydrogen

Thanks to its unique combination of versatility, sustainability and storage capacity, green hydrogen plays a central role in the energy transition, acting as both an energy vector and a feedstock in sectors where direct electrification is limited:

Heavy industry: Areas such as steelmaking, cement, fertiliser or chemical production can significantly reduce their carbon footprint by replacing grey hydrogen with green hydrogen.

Transport: Hydrogen is positioned as a viable alternative for long-distance transport, such as shipping or aviation, where batteries face technical limitations as substitutes for fossil fuels. Its use in fuel cells or as synthetic fuel paves the way for cleaner, more sustainable mobility.

Power and residential heating: Integrated into renewable gas grids or domestic fuel cells, it can supply electricity and heat to homes and buildings, supporting low-emission communities.

Applications of green hydrogen

According to the International Energy Agency (IEA), producing green hydrogen through electrolysis could prevent up to 830 million tonnes of CO₂ emissions per year that would otherwise be generated by fossil-based hydrogen. This reduction potential will increase as global investment in electrolysis capacity expands.

In this context, BBVA Corporate & Investment Banking is committed to supporting the decarbonisation of its clients through a range of cleantech solutions, advising on and financing renewable hydrogen projects that, while complex, are essential to the decarbonisation process.

BBVA CIB’s specialisation, technical expertise in sustainability, and firm commitment to reducing greenhouse gas emissions position it as a key player in the global decarbonisation effort and a strategic partner for companies and institutions.