Renewable electrolytic hydrogen made with wind and solar power provides the greatest social benefit when used in steelmaking, transoceanic shipping, and long-haul trucking, University of California Irvine researchers said on May 12. The findings were published in the journal Joule.
The study offers a framework for policymakers and industry leaders to prioritize investments in hydrogen where it can deliver the most public benefit. These benefits include less climate damage, cleaner air, and improved human health.
“Electrolytic hydrogen is a critical tool for decarbonizing sectors that are otherwise difficult to electrify directly, such as heavy industry and long-range freight transport,” Jeff Reed, senior fellow at the UC Irvine Clean Energy Institute who led the research effort, said. “However, widespread adoption faces significant barriers, including high production costs, substantial energy requirements and limited supply.” Reed also said that traditional cost analyses often miss broader societal values like improved health and reduced climate impacts.
Researchers conducted a monetized life cycle analysis comparing renewable hydrogen with fossil fuels, direct electrification, and battery storage across eight major sectors. They found that using renewable hydrogen in steelmaking or replacing marine fuel oil or diesel can yield societal benefits exceeding $5 to $8 per kilogram of H₂ by displacing dirtier fuels. Lead author Robert Flores said fossil-derived hydrogen has low social value compared to renewable sources: “Renewable electrolytic hydrogen is a limited resource, and society cannot afford to deploy it indiscriminately… In most other applications, direct electrification is the more efficient path forward.” Hydrogen fuel cells were found to deliver an 80% to 100% greater social value than internal combustion engines across most applications.
Co-author Mariam Al Moubasher noted that achieving these benefits depends on using clean electricity: “When powered by wind and solar, most hydrogen and electrification pathways cut social costs – including worsening climate change… – by more than 90 percent compared to fossil fuels; that makes a clean grid the dominant and necessary condition.” Senior co-author Jack Brouwer added: “The societal outcomes we quantify – less climate damage, cleaner air and improved human health – are externalities that market prices simply do not reflect… policy intervention is essential to direct investment toward the applications where hydrogen truly pays off for society.”
From a policy perspective, researchers suggest targeted incentives based on life-cycle analysis rather than uniform support for all uses of hydrogen. This approach could reward applications with higher social benefits while discouraging continued use of damaging fossil technologies.
University of California Irvine’s teams participate in NCAA Division I athletics; it earned a Carnegie classification for very high research activity; functions within the University of California system; focuses on advancing knowledge through research with an emphasis on inclusive excellence; engages in international collaborations; and holds accreditation from the Western Association of Schools and Colleges Senior College and University Commission,according to its official website.