Material Insights · Understanding the Material World

Low-carbon hydrogen and e-fuels: Emissions

How clean green hydrogen really is, from panel to tank

What this tab covers The greenhouse-gas footprint per tonne, split by lifecycle phase (feedstock, production, movement, use, end of life), the global total, other environmental impacts, levers and low-carbon routes, India's position, and where the investment opportunity lies. Emission intensity 1.50 t CO2e per t H2 range under 1 (renewable electrolysis) to about 4 (blue with low capture or high methane leakage) · indicative mix of green (about 0.5-1) and blue (about 1-4); compares with about 12 t for the grey world average Global emissions per year 1.50 Mt CO2e per year 2025 · about 1.5 t x about 1 Mt low-emissions hydrogen; avoids about 10 Mt versus grey

Per t of hydrogen (or hydrogen equivalent in derivatives), well-to-gate. Intensity: hydrogen tile (IEA GHR series, indicative). Global total: derived (indicative).

Share of footprint by lifecycle phase

Feedstock 47% Production / process 40% Movement 13%

Footprint by lifecycle phase

PhaseIntensityShareMain sources of emissionsNotesSource
Feedstockabout 0.7 t CO2e per t H247%embodied emissions of solar, wind and electrolysers; upstream gas and methane leakage for blueIndicativeIndicative
Production / processabout 0.6 t CO2e per t H240%residual uncaptured CO2 for blue; grid top-up power for greenGrid power at India's average intensity would exceed the 2 kg/kg standardIndicative
Movementabout 0.2 t CO2e per t H213%conversion to ammonia or methanol, shipping, cracking back to hydrogenConversion losses can be 10-30% of energy (indicative)Indicative
Usezero for hydrogen; e-fuels re-release captured CO2 when burned–ammonia combustion can emit N2O and NOx; hydrogen leaks have an indirect warming effectNet benefit of e-fuels depends on the CO2 source being biogenic or air-capturedIndicative
End of lifenot applicable–fuels are consumedElectrolyser stacks and catalysts can be recycledNot applicable

Other environmental impacts

Water use of 9-15 t per t H2 in dry regions; land for renewables; ammonia toxicity; iridium supply.

Levers to cut emissions

  • Cheaper electrolysers (Chinese stacks at $600-1,200/kW vs $2,000-2,600/kW)
  • Hybrid solar-wind with storage for over 50% utilisation
  • Low-cost capital and long-term offtake
  • Use near the point of production to avoid conversion losses
  • Biogenic CO2 for e-methanol and e-SAF

India

Replacing India's roughly 6 Mt of grey hydrogen would avoid about 60-70 Mt CO2 a year (hydrogen tile, indicative). Green hydrogen made on grid power would not meet India's 2 kg CO2e/kg standard, so projects rely on dedicated renewables.

Emission figures are indicative global averages from the life-cycle studies named; actual footprints vary widely by site, energy mix and method.

Low-carbon routes

RouteIntensityCost premiumStatusSource
Green hydrogen for refineriesunder 1-2 t CO2e per t H2about $2.4/kg over grey in India (2025)IOCL Panipat 10 kt; L&T Green 90 kt under SIGHThydrogen tile
Green ammoniaunder 0.5 t CO2e per t NH3about 10-45% over grey (2025)SECI 724 kt/yr; NEOM about 1.2 Mt/yr (indicative)ammonia tile
E-methanolnear zero with biogenic CO2about $800-1,600/t vs $100-250/t fossilKassø about 42 kt (2025)methanol tile
E-SAFabout 70-90% below fossil jet (indicative)EUR 4,000-9,000+/t vs roughly $700-900/t fossil jet (indicative)over 2 Mt/yr in development in Europe, none at FID (2026)PwC Strategy& (Jul 2026)
For a climate investor The investable core today is green ammonia and refinery hydrogen in India, where buyers, pipes and tenders exist and prices are within about 10-45% of grey. Each spike in LNG prices, as in 2022 and 2026, narrows that gap. Fund-relevant bets are low-cost hybrid renewables plus electrolysis at scale (ACME, AM Green, L&T Green, NTPC Green), and the supply chain behind them: electrolysers, balance of plant and storage. E-SAF and e-methanol need EU, UK or IMO mandates to pay EUR 4,000-9,000/t, so treat them as option value. India could export them if its power and capital costs stay low. What must be true: 50%+ capacity factors, electrolyser costs falling towards Chinese levels, and contracts that hold after subsidies end.