Hydrogen Production 101 – The past, the present, and its bright future. 

Advancements in electrolyser technology are rapidly improving efficiency and reducing Hydrogen production costs while increasing global commitments to renewable energy expand the availability of green hydrogen. As infrastructure develops and economies of scale take effect, hydrogen is set to become a mainstream energy carrier—powering industries, heavy transport, and even entire cities with clean, sustainable fuel. 

Article main Takeaways 

• Hydrogen production has evolved from early discoveries in the 18th century to modern-day electrolysis and sustainable solutions. 

• Several methods exist for hydrogen production, the main ones are electrolysis, steam methane reforming (SMR), coal gasification, and biomass gasification. 

• This article contains a comparison table highlighting the efficiency, costs, and environmental impact of different hydrogen production methods. 

• Key challenges in hydrogen production include cost, energy efficiency, infrastructure, and scalability. 

• Companies focus on improving efficiency through advanced electrolysis, renewable energy integration, and innovative catalysts. 

• The future of hydrogen production is expected to bring cost reductions, increased scalability, and new technological breakthroughs. 

• Stargate Hydrogen is contributing to the field with high-efficiency electrolyser technology. 

The Evolution of Hydrogen Production 

Hydrogen has been part of scientific and industrial advancements for centuries. From its discovery to modern applications, the journey of hydrogen production includes several breakthroughs: 

• 1766 – Henry Cavendish identifies hydrogen as a distinct element. 

• 1783 – Antoine Lavoisier names the element "hydrogen." 

• 1800 – William Nicholson and Anthony Carlisle demonstrate water electrolysis. 

• 1920s – Industrial-scale hydrogen production begins via coal gasification. 

• 1927 – The first large-scale commercial electrolysis in Rjukan, Norway 

• 1930s – Steam methane reforming (SMR) is introduced. 

• 1950s – Large-scale ammonia production drives hydrogen demand. 

• 1970s – Interest in hydrogen as a clean energy source grows due to oil crises. 

• 2000s – Focus on green hydrogen increases with climate change initiatives. 

• 2020s – Advancements in electrolyser technology gain momentum and the cost of hydrogen production becomes more affordable. 

Comparing Hydrogen Production Methods 

With the growing focus on renewable energy, hydrogen became a choice of sustainable energy storage that can help reduce dependence on fossil fuels. Electrolyser technology is the most used in producing green hydrogen, and the two main types of electrolysis are Alkaline and PEM (Proton Exchange Membrane) electrolysers—which offer distinct benefits and limitations.

If you want to know more about these two methods of electrolysis, check the following article for a clear view of their advantages, and where they fall short: PEM Electrolysers vs. Alkaline Electrolysers.

The Different Colors of Hydrogen 

Hydrogen is categorized into distinct colors based on its production method and environmental impact. Grey hydrogen is the most common and is produced from natural gas through steam methane reforming (SMR), releasing significant CO2 emissions. Blue hydrogen is also derived from natural gas but incorporates carbon capture and storage (CCS) to reduce emissions.  

Green hydrogen is produced using renewable electricity and electrolysis, making it the cleanest choice. Turquoise hydrogen is created through methane pyrolysis, which produces solid carbon instead of CO2. Pink hydrogen is generated using nuclear-powered electrolysis, while brown and black hydrogen come from coal gasification, and have high carbon emissions. Understanding these variations is essential when evaluating hydrogen’s role in the energy transition.  

Read more about the colours of hydrogen in the article about the different types of hydrogen.  

Challenges in Hydrogen Production 

While hydrogen has the potential to be a clean fuel source, several challenges must be addressed: 

• Cost Constraints - Producing hydrogen, especially green hydrogen, remains expensive compared to fossil fuels. The high costs stem from the cost of the electricity required for electrolysis and the cost of setting up production facilities. Large-scale adoption will require substantial investment in research to increase production efficiency, lower production costs and improve the economics of hydrogen as a fuel source. 

• Energy Efficiency - Converting electricity into hydrogen and then back into energy results in losses at each stage. The efficiency of electrolysis and hydrogen fuel cells must improve to make hydrogen a competitive energy carrier. Research is focused on developing more efficient membranes, catalysts, and system designs that reduce energy losses. 

• Infrastructure Limitations - Storage, transport, and distribution networks for hydrogen are underdeveloped. Hydrogen requires high-pressure tanks, cryogenic storage, or chemical carriers to be transported effectively. Expanding refueling stations and pipelines is essential for making hydrogen more accessible for industrial and transport applications. Read more about hydrogen infrastructure in the article: The Importance of Hydrogen Infrastructure in the Green Energy Transition 

• Scalability - Scaling up production while maintaining cost-effectiveness is a major hurdle. Many pilot projects exist, but large-scale implementation is still limited by investment, supply chain constraints, and the slow development of regulatory frameworks that support hydrogen adoption. However, momentum is building as governments, industries, and investors recognise hydrogen’s potential to drive the energy transition. 

Advancements in Hydrogen Production 

Companies are working on multiple fronts to enhance hydrogen production: 

• Electrolysis Efficiency – Researchers are developing advanced catalysts that reduce energy requirements and improve hydrogen yield. Solid oxide electrolysis (SOE) and anion exchange membrane (AEM) technologies show promise, but one of the most promising approaches is the implementation of ceramic coating on the electrodes of alkaline electrolysis stacks since the technology has proven to be the most reliable and scalable. 
   

• Renewable Integration – Using surplus solar and wind power for hydrogen production reduces reliance on fossil fuels and enables the production of very cheap hydrogen. Hydrogen can be stored and used when renewable energy production is low, balancing grid fluctuations and improving energy security. 
   

• Modular Electrolysers – Compact and scalable systems enable hydrogen production closer to demand centers. These systems allow industries to generate hydrogen on-site, reducing reliance on centralized production and costly transportation infrastructure. 
   

• Carbon Capture in SMR – Efforts to capture and store CO2 emissions from SMR processes make traditional hydrogen production cleaner. Carbon capture and storage (CCS) technology is being integrated into existing hydrogen plants to significantly reduce emissions. 

How Stargate Hydrogen Contributes 

The current state of alkaline electrolysers - Although alkaline electrolysis technology is often described as being free of precious metals, the fact is that a large fraction of alkaline electrolysers are still utilising electrodes made of ruthenium and iridium which are some of the rarest elements in Earth’s crust.

While alkaline electrolysers boast high current densities and high efficiency, their wider adoption is hindered by raw material availability issues. Nickel-based alkaline electrolysers do not face raw material availability issues but suffer from lower current densities and lower efficiencies.

At Stargate, we build upon the best aspects of proven alkaline electrolysis technology and complement it with breakthrough materials. This results in a completely new class of electrolysers: ceramics-based alkaline electrolysers, that have high current densities, and high efficiencies, yet contain no precious metals. This results in significantly lower hydrogen production costs and makes the electrolysers affordable for the end-users.

Watch Marko Virkebau, Stragate’s CEO explaining their technology: 

What to Expect in the Future of Hydrogen Production 

The future of hydrogen production is not just promising—it’s inevitable. The momentum behind hydrogen is strong and, with breakthroughs in technology, policy support, and market demand is converging to accelerate its adoption at an unprecedented pace. 

• Cost Reductions – The path to affordable green hydrogen is becoming clearer. With continuous improvements in electrolyser efficiency, automation, and mass production, the cost curve is expected to decline significantly, making hydrogen a viable alternative to fossil fuels sooner than later. 

• Advanced Storage Solutions – Cutting-edge breakthroughs in hydrogen storage are addressing one of the biggest challenges in the energy transition. Technologies like metal hydrides and liquid organic hydrogen carriers (LOHCs) will enable safer, more efficient transportation and long-term storage. 

• Hydrogen Hubs and Networks – Across the world, hydrogen ecosystems are taking shape. From Europe to Asia and North America, governments and private enterprises are investing in large-scale hydrogen hubs, ensuring that production, distribution, and end-use industries are seamlessly connected. 

• Policy and Incentives – The regulatory landscape is shifting in favor of hydrogen. Ambitious national strategies, carbon pricing mechanisms, and financial incentives are accelerating infrastructure investment and market development, bringing hydrogen from niche to necessity. 

• Sector Coupling – Hydrogen is well positioned to become an important asset of a decarbonised economy. Integrating hydrogen production facilities with existing energy systems will impact industries such as steel manufacturing, transport, and power generation—reducing emissions where electrification alone falls short. 

Conclusion 

Hydrogen production has come a long way, with various technologies competing to provide cost-effective and clean solutions. Challenges remain, but ongoing research and development are pushing the industry toward greater efficiency, scalability, and affordability. The future looks promising as companies continue to innovate, governments provide incentives and global demand for sustainable energy solutions grows. To learn more about hydrogen production and how Stargate Hydrogen is shaping the future, visit our website.