Ujjwal Parwal, Founder & Director, RationalStat LLC, shares a report on the role of green hydrogen as an alternative fuel for cement production.
According to the International Energy Agency’s (IEA) most recent predictions, which were released at the end of 2019, the world’s energy demand will rise by 25 to 30 per cent by 2040, resulting in an increase in CO2 emissions in an economy dependent on coal and oil and exacerbating climate change. Decarbonizing the earth envisions a different world in 2050, powered by clean energy like green hydrogen, which is more accessible, effective and sustainable. To create green hydrogen, low-carbon or renewable energy sources are used, which significantly reduces carbon emissions as compared to grey hydrogen, the majority of the hydrogen market is produced by steam-reforming natural gas. The cement industry might use green hydrogen as an alternative fuel, reducing its carbon footprint.
Challenges of Using Green Hydrogen However, the cost of manufacturing green hydrogen is currently higher than conventional fossil fuels, and there is still a lack of infrastructure for the production, storage, and transportation of green hydrogen. Despite these challenges, there are already instances of cement manufacturers looking into using green hydrogen. For example, Cemex announced its intention to power its cement mill in Germany with green hydrogen in 2021, and HeidelbergCement aims to run its manufacturing process on carbon-neutral fuels like green hydrogen by 2030.
Market Insights on Green Hydrogen According to RationalStat, the green hydrogen industry is expected to experience rapid growth in the years to come, with global green hydrogen production capacity anticipated to increase from 2,000 MW in 2020 to 2,852 MW by the end of 2021. Although this is a substantial rise in capacity, it still represents only a small portion of the overall world energy demand. Nonetheless, several nations and businesses have ambitious goals for the development of the green hydrogen sector. For instance, Germany plans to add 5 GW of electrolyser capacity by 2030, while the European Union has set a goal of 40 GW by the same year. Australia aims to lead the green hydrogen export industry to Asia, with plans to produce 1 GW and 10 GW of hydrogen by 2025 and 2040, respectively.
The India Perspective India is well-positioned to become a leading producer and consumer of green hydrogen as a result of ample and low-cost raw materials. India’s Green Hydrogen production capacity is likely to reach at least 5 million tonnes per annum during the forecast period, annually. The Indian government has been strongly striving to use green hydrogen as energy in the cement and steel industry in place of coal in a bid to protect the environment. A strong government push towards green hydrogen production under its National Green Hydrogen Mission will scale up the production. The government’s incentive aims to make green hydrogen cheaper and bring down its production cost, currently at INR 300 to INR 400 per kg.
Notable Events across India’s Green Hydrogen Market In April 2022, Oil India, a Government of India enterprise, commissioned the country’s only pure green hydrogen pilot plant with an installed capacity of 10 kg per day at its Jorhat Pump Station in Assam. In February 2023, the Department of Science and Technology and Germany’s Fraunhofer Institute for Solar Energy Systems signed a letter of intent for a long-term collaboration focusing on hydrogen and other clean technologies.
Also, the European Investment Bank signed a memorandum of understanding with the India Hydrogen Alliance to provide ~US$1.06 billion to develop large-scale green hydrogen hubs and projects across India.
In January 2023, Essar Group announced to invest US$ 1.2 billion for green hydrogen production.
In 2022, L&T installed a green hydrogen plant that will produce 45 kg of green hydrogen daily, which will be used for captive consumption at the company’s Hazira manufacturing complex.
In 2022, Karnataka signed two major projects relating to hydrogen production, adding to the ongoing efforts to cement energy security through green initiatives.
Key Countries Exploring Green Hydrogen While there are several countries exploring or using green hydrogen as an alternative fuel for the cement industry, it is important to note that this is still an emerging technology, and adoption varies widely by region. Germany: The German cement industry is actively exploring the use of green hydrogen as an alternative fuel to reduce CO2 emissions. A joint research project between the German Cement Works Association and the Technical University of Munich aims to develop a large-scale pilot plant for green hydrogen use in cement production. Norway: Norwegian company Norcem is the first cement producer in the world to use hydrogen as a fuel in cement production. The company has been using hydrogen since 2020 and aims to achieve zero emissions by 2030. Spain: Spanish cement company Cemex has signed an agreement with energy company Iberdrola to develop a green hydrogen production plant in the Canary Islands that will supply the cement industry. Australia: Australian cement company Adelaide Brighton Cement is partnering with the Australian Renewable Energy Agency to investigate the use of green hydrogen as a fuel in cement production. Netherlands: Dutch cement company HeidelbergCement is partnering with Dutch gas infrastructure company Gasunie to develop a pilot project for the use of hydrogen in cement production.
Largest Green Hydrogen Producer China maintains the first place in hydrogen production and consumption of more than 24 million metric tonnes (Mt) followed by the European Union (EU), India, Japan, South Korea, and the United States. The development of Chinese markets and technologies at each stage of the value chain is strongly supported by the Chinese government as part of the country’s push toward green hydrogen. State-owned businesses and state research and development institutions are working enthusiastically to create hydrogen technologies in anticipation of a significant expansion of the sector. By 2050, it is predicted that hydrogen would make up 10–12 per cent of China’s energy consumption and up to 22 per cent globally. For the country to reach this point sustainably and in line with its emission targets, cheap and scalable green hydrogen technology such as electrolysers is needed. Within a few years, green hydrogen is predicted to be priced at parity with grey hydrogen, which is currently less expensive, as costs for carbon-rich fuels rise and electrolysis technology develops. According to RationalStat, the following are the four pillars of China’s Green Hydrogen Industry:
R&D Investment: More than half of the green hydrogen (water electrolysis) patents filed in 2018 and 2019 worldwide were registered in China.
Policy Support: Over 500 hydrogen-related policies have been released by the local and provincial governments.
Project Development: More than 120 green hydrogen projects are under construction, further increasing the production capacity.
Industrial Build-up: China has installed an electrolyzer capacity to reach 38GW by 2030.
These are just a few examples of countries and companies exploring the use of green hydrogen as an alternative fuel for the cement industry. However, it’s important to note that this is an emerging technology and its adoption varies widely by region.
ABOUT THE AUTHOR
Ujjwal Parwal is the Director and Founder of RationalStat LLC, a leading global market research and procurement intelligence firm with 10+ years of industry expertise.
World Environment Day spotlight on innovation and circularity
On World Environment Day, the Indian cement industry reiterated its commitment to supporting India’s climate ambitions through sustainable manufacturing, resource efficiency and the adoption of cleaner technologies.
The Cement Manufacturers’ Association (CMA) said the sector remains aligned with the Government of India’s Net Zero commitments and is accelerating efforts to reduce its environmental footprint while supporting the country’s infrastructure and development agenda.
Parth Jindal, President, CMA and Managing Director, JSW Cement, said the industry is increasingly adopting cleaner technologies, improving energy efficiency and expanding the use of alternative fuels and raw materials. He also highlighted the growing importance of circular economy practices, where industrial by-products and waste streams from one sector are utilised as resources in another.
“The Indian Cement Industry is aligned to the Government’s commitments on carbon mitigation and is accelerating the adoption of cleaner technologies, resource efficiency and circular economy practices while actively exploring the potential of Carbon Capture, Utilisation and Storage (CCUS) as a critical pathway for deep decarbonisation,” said Jindal.
He added that coprocessing industrial waste and by-products helps conserve natural resources, reduce disposal requirements and lower the environmental footprint across multiple sectors.
According to Jindal, sustainability is no longer limited to manufacturing processes but is increasingly influencing investment decisions, innovation strategies and long-term growth plans within the industry.
Echoing similar views, Dr Raghavpat Singhania, Vice President, CMA and Managing Director, JK Cement, said sustainable development extends beyond emissions reduction and must also focus on responsible resource utilisation and waste minimisation.
“Sustainability in the built environment cannot be measured by emissions alone. It is equally about how efficiently we use resources, how effectively we minimise waste and how responsibly we create the infrastructure that will serve future generations,” said Singhania.
He noted that the cement industry is advancing its sustainability agenda through greater resource efficiency, increased circularity, technological innovation and continuous improvements in manufacturing practices. As a key contributor to India’s infrastructure development, the sector has a critical role to play in balancing economic growth with environmental responsibility.
On the occasion of World Environment Day, industry leaders reaffirmed their commitment to supporting India’s climate goals while delivering the materials required for resilient, durable and sustainable infrastructure.
Environmental sustainability requires immediate action, not just long-term commitments and discussions. Recycling, circular economy practices, and technology-driven waste management can help industries reduce environmental impact while supporting sustainable growth.
Author: Jignesh Kundaria, Director and CEO, Fornnax Technology
World Environment Day serves as an important reminder that environmental sustainability can no longer remain confined to discussions, reports, or long-term commitments. The environmental challenges facing the world today demand immediate, measurable, and collective action. Across industries and communities, waste generation continues to outpace our ability to process it responsibly, placing increasing pressure on ecosystems, natural resources, public health, and the well-being of future generations.
One of the most significant shifts required today is a change in how society perceives waste. Rather than being viewed as a material to be discarded, waste must be recognised as a valuable resource that can contribute to both economic growth and environmental protection when managed through the right technologies and systems. This mindset forms the foundation of the circular economy model that countries across the world are increasingly adopting to reduce landfill dependence, recover valuable materials, and create more sustainable industrial ecosystems.
India has made meaningful progress in strengthening awareness around sustainability, recycling, and environmental responsibility over the past decade. Significant efforts are being made to formalise the recycling sector through improved infrastructure, technology adoption, policy implementation, and broader stakeholder participation. These developments are creating a stronger foundation for responsible waste management and resource recovery across the country.
However, achieving long-term environmental impact requires collaboration from all stakeholders. Industries, policymakers, technology providers, and communities must work together with greater accountability to strengthen recycling ecosystems, encourage responsible waste management practices, and create sustainable outcomes through consistent execution rather than temporary interventions.
As someone closely associated with the recycling industry, I firmly believe that technology will play a decisive role in addressing future environmental challenges. Advanced recycling systems have the potential to recover valuable resources, reduce pollution, minimise landfill burdens, and conserve energy, creating a more sustainable future for generations to come. This belief is deeply reflected in Fornnax’s motto, “Committed to Create a Green Future,” which embodies our commitment to building long-term environmental value through innovation and responsible action.
At the same time, technology alone cannot deliver meaningful change. Real progress requires intent, awareness, participation, and a shared sense of responsibility. Sustainable development can only be achieved when innovation is supported by collective action and a genuine commitment to environmental stewardship.
On this World Environment Day, let us move beyond conversations and take meaningful steps towards creating a cleaner, greener, and more sustainable planet. By embracing innovation, strengthening recycling ecosystems, and acting responsibly today, we can create lasting environmental impact and secure a better future for generations to come.
The meeting reviewed progress in limestone calcined clay cement (LC3) technology and its commercial adoption in India’s cement sector, focusing on low-carbon alternatives to conventional binders. JK Lakshmi Cement noted that limestone calcined clay cement can reduce carbon dioxide emissions by up to 40 per cent compared with conventional cement and said this reduction supports industry decarbonisation. The company highlighted that it was among the first two cement manufacturers in India to move LC3 into commercial production after the Bureau of Indian Standards approved the technology as a cement standard.
Vinita Singhania said the transition of LC3 from research to commercial production reflected collaboration between industry, academia and international institutions. Maya Tissafi acknowledged JK Lakshmi Cement’s role in advancing LC3 adoption in India and its contribution in taking the technology from laboratory trials to commercial implementation. Both representatives underlined the growing relevance of sustainable construction materials as India expands infrastructure and urban development.
The meeting explored continued collaboration with Swiss research institutions such as EPFL, EMPA and ETH Zurich alongside Indian academic partners and development organisations. JK Lakshmi Cement has been associated with the LC3 initiative since 2014 and worked with EPFL, IIT Delhi, IIT Madras, Development Alternatives and Technology and Action for Rural Advancement. The company conducted one of the earliest industrial trials of LC3 and recently announced commercial production of Green Pro LC3 cement from its Jaykaypuram plant in Rajasthan.
India remains the world’s second-largest cement producer and expansion of infrastructure, urbanisation and housing demand continue to support long-term sector growth, increasing interest in low-carbon technologies. The company reported an annual turnover of more than Rupees (Rs) 60 bn and current cement capacity of about 18 million (mn) tonnes (t) per annum, with a target of reaching 30 million (mn) tonnes (t) by 2030. Apart from grey cement, the company also makes ready-mix concrete, gypsum plaster, wall putty, primers, adhesives and fly ash blocks, and both sides concluded on the need for continued collaboration to develop sustainable construction solutions.