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Where Does Hydrogen Fuel Come From?

Nick Vasco | 3 minutes | March 3, 2025

Hydrogen fuel mainly comes from two main sources: steam methane reforming of natural gas and water electrolysis. These production methods, along with several emerging technologies, form the backbone of global hydrogen fuel production.

This guide explains how these methods work alongside their pros and cons. We’ll then show you some lesser-known ways to obtain hydrogen fuel and discuss the future of hydrogen production.

Tip: Check out WestAir’s hydrogen services.

Natural Gas Reformation: The Current Industry Standard

Steam methane reforming (SMR) dominates today’s hydrogen production landscape, accounting for around 50% of global hydrogen supply. This process involves combining natural gas with high-temperature steam in the presence of a nickel catalyst.

The reaction produces hydrogen gas and carbon dioxide as byproducts. It’s highly efficient, converting about 74% of the original fuel’s energy content into hydrogen. Still, this method generates significant carbon dioxide emissions, so it’s not particularly eco-friendly.

Water Electrolysis: The Clean Energy Alternative

Electrolysis is a cleaner approach to hydrogen production, especially when powered by renewable energy sources. This process splits water molecules into hydrogen and oxygen using an electrical current.

The value of electrolysis lies in its simplicity and environmental impact. When powered by solar or wind energy, this method produces no direct carbon emissions.

Alternative Production Methods

Several other methods contribute to global hydrogen production, most notably:

  • Coal gasification – this process converts coal into a hydrogen-rich gas mixture, though this process faces similar environmental challenges as SMR.
  • Plasma pyrolysis – offers an innovative approach, breaking down hydrocarbons into hydrogen and solid carbon black without producing carbon dioxide. This technology shows promise for reducing environmental impact.
  • Biomass gasification – this method is another sustainable option. This process converts organic matter into hydrogen-rich syngas, potentially creating a circular economy approach to fuel production.

Modern Production and Distribution

Today’s hydrogen production landscape reflects a mix of technologies and approaches. About 79% of hydrogen comes from dedicated production facilities, while 21% emerges as a byproduct from refineries.

Global hydrogen usage exceeded 90 million tonnes in 2020, with demand projected to increase by over 30% by 2030. This growth drives innovation in production methods and distribution networks.

Industrial gas suppliers play a crucial role in this ecosystem. They maintain sophisticated production facilities and distribution networks to ensure reliable hydrogen supply for various applications.

The Future of Hydrogen Production

The hydrogen production landscape is evolving rapidly, with increasing emphasis on clean production methods. The U.S. Department of Energy actively supports various production pathways focused on reducing environmental impact.

Emerging technologies like different biological processes show considerable promise in the field of green production. These include:

  • Dark fermentation
  • Photo fermentation
  • Biocatalyzed electrolysis

Industry leaders continue to invest in hydrogen research and development, seeking more efficient and environmentally friendly production methods. This innovation drives the transition toward cleaner hydrogen production.

As demand grows and technology advances, we’re likely to see a shift toward more sustainable production methods. This evolution will shape the future of hydrogen as a key player in the clean energy transition.

The hydrogen fuel industry is currently at a pivotal point, balancing current production capabilities with future environmental needs. Understanding these production methods helps businesses make informed decisions about their energy choices.

Further Reading: What is Green Hydrogen?