Concrete

Green Hydrogen

Published

3 years ago

June 12, 2023

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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.

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Hard Worker Wins Three Honours at Kyoorius Design Awards

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The Ramco Cements Limited’s construction chemicals brand, Hard Worker, has won three honours at the Kyoorius Design Awards 2026, including the Grand Prix – Grey Elephant in the Design in Action category.

The brand also secured two Blue Elephant honours, one for Design in Action and another for Packaging, recognising the design approach behind its brand identity and packaging.

Launched in 2025, Hard Worker entered the construction chemicals segment with the brand promise, “Hard-working products for hardworking people.” Its visual identity uses animals and birds to represent product benefits. The camel represents the water-retention capability of Hard Worker Eco Plaster, while the cheetah represents the speed and performance of Hard Worker Block Fix.

The visual language has been extended across packaging, retail, communication, literature, digital platforms and other brand touchpoints. Hard Worker uses bold colours, distinctive animal illustrations and simple visual storytelling to communicate product benefits across markets and audiences, including construction workers and applicators.

“For Hard Worker, design was never an afterthought. It was fundamental to how we wanted to build the brand. In a category that is largely functional, we wanted to create a brand that people could recognise, understand and remember instantly. The Kyoorius recognition is a wonderful validation of this design-led approach,” said Mr. AV Dharmakrishnan, CEO, The Ramco Cements Limited.

Mr. Balaji K. Moorthy, Executive Director – Marketing, Ramco Cements said “In a category where communication has traditionally been product-led and functional, we wanted Hard Worker to stand apart by making design an integral part of the brand experience. From the distinctive animal-led packaging to our communication across consumer and trade touchpoints, every element was designed to make the brand more memorable and the product benefits easier to understand.”

Within its first 12 months, Hard Worker crossed Rs 3.5 bn in sales. The latest recognition follows six honours secured by the brand’s campaign at the Kyoorius Creative Awards earlier in 2026, including the Grey Elephant Grand Prix for its Eco Plaster film.

The Kyoorius Design Awards recognise outstanding design work in India’s visual communications sector across multiple categories and platforms. The 2026 awards were announced on 12 September in Goa.

The Ramco Cements Limited is part of the Ramco Group and operates across cement and allied building-material solutions. Hard Worker is its construction chemicals brand, offering solutions across key construction applications.

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Cement Firms to Invest Rs. 130 bn in Green Energy by FY28

Cement companies plan to expand clean energy capacity to 6 GW by FY28

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India’s major cement companies are set to raise their clean energy capacity to 6 GW by March 2028 from around 4 GW at the end of March 2026, according to ratings agency ICRA. The planned expansion is expected to involve investments of Rs. 130 bn over the next two years.

The additional capacity could generate annual savings of Rs. 62 bn to Rs. 67 bn, resulting in an estimated payback period of 1.8 to 2.2 years. Cement is an emission-intensive industry, and leading producers have established net-zero roadmaps covering the next 15 to 20 years.

The calcination process accounts for 57 to 60 per cent of the sector’s total emissions, while fuel combustion contributes 27 to 30 per cent and electricity consumption accounts for 10 to 13 per cent. ICRA said the figures highlighted the need for a broad decarbonisation strategy involving green power, blended cement, alternative fuels and improvements in clinker efficiency.

Green energy is considered one of the most commercially attractive decarbonisation options because it can reduce emissions while lowering operating costs. Every 5 per cent increase in green power replacement can reduce power and fuel costs by Rs. 15 to Rs. 16 per tonne. A 25 per cent replacement level could therefore save Rs. 75 to Rs. 80 per tonne and expand operating margins by 140 to 160 basis points.

Cement producers are also assessing carbon capture, utilisation and storage, although high implementation costs, energy requirements and limited transport and storage infrastructure are expected to slow commercial adoption. The government has proposed Rs. 200 bn over five years to support deployment across key sectors. Meanwhile, companies are targeting thermal substitution rates of 10 to 15 per cent over the next three to five years, compared with the current industry level of around 6 per cent.