A Guide to Green Hydrogen Production

A Guide to Green Hydrogen Production

June 29, 2023 1 By Luis Francisco

Green hydrogen is a form of hydrogen generated through water electrolysis with renewable energy sources like wind power and solar power. It’s now being considered one of the leading players in solving critical energy problems and is also a standout option for the storage of energy from renewable sources. 

Despite governments and multiple industries acknowledging hydrogen’s importance for achieving a zero net economy, not everyone knows what it is, its benefits, and how green hydrogen businesses are launched. This helpful guide can be a starting point for you to find out more.   

How to Start a Green Hydrogen Plant

While you can learn more about launching new businesses from corporate business lawyers, developing a green hydrogen plant can require a great deal more research. You typically need a number of licenses, such as environmental clearances, building and electricity permits, and tax registrations. You must also provide documentation for ensuring your new operation is legitimate and operating as it should, such as: 

  • Insurance documents
  • Certificate of incorporation
  • Environmental clearances
  • Industrial licenses
  • Electricity board permits 

Production and distribution methods must also be considered, particularly as there are several ways to produce hydrogen and just a few distribution networks in operation. Starting a new green hydrogen plant is not for the faint of heart, especially since it can require years of planning and multi-million-dollar investments. green hydrogen production plant incentives and requirements

Incentives for Clean Energy

Any businesses exploring hydrogen fuel cell projects might like to explore the available federal and state financial incentives, of which there are many. Manufacturers exploring fuel cell electric vehicles, electrolyzers, and hydrogen infrastructure may be eligible for the Advanced Energy Project Credit. This incentive extends the 30% investment tax credit and is funded at $10 billion for eligible projects. 

The Clean Hydrogen Production Tax Credit can also be lucrative for manufacturers, especially since you might be able to enjoy a tax credit of up to $3/kg. If your business revolves around energy storage, including hydrogen storage, you might be eligible for the Energy Storage Credit. 

Benefits of Green Hydrogen Production

We’re relying on electricity more than ever before, especially with the growing popularity of electric cars and heating sources. However, traditional energy production methods can come at a high environmental cost, making it important for us to explore much less harmful options. Green hydrogen undoubtedly ticks that box. 

Clean Energy Source

Unlike fossil fuels, green hydrogen energy is a clean energy source that doesn’t emit pollutants and greenhouse gasses. Instead, when hydrogen is used as fuel, it produces water vapor. 

Extended Energy Storage

Renewable energy storage has long been a frustrating problem for manufacturers. Our global energyhydrogen news ebook transition demands are outstripping the practicality, efficiency, and costs of batteries. Hydrogen is proving to be an effective storage medium and can potentially reduce greenhouse gas emissions by 60 Gt by 2050


Hydrogen’s versatility is undeniable. Not only can it generate electricity, but it can also power vehicles, heat structures, and even assist with manufacturing industrial chemicals. 

We might not yet understand exactly how green hydrogen works or its potential in our daily lives, but that doesn’t mean we never will. With many incentives for businesses to develop new hydrogen plants and with many desirable benefits, it might only be a matter of time before green hydrogen puts us on the path to becoming a zero net economy.


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