Hydrogen Economy: The Future of Sustainable Mobility

By Taehoon Ahn Oct. 26, 2025

1. Introduction

In August 2024, South Korea was shaken by two primary electric vehicles (EV) fires in Cheongna and Geumsan—gun, reigniting public fears of EVs. After these incidents, applications to sell EVs surged by 184 percent, reflecting mounting consumer anxiety and skepticism about EV technology. However, these incidents are not merely isolated events. Since 2020, the frequency of EV fires has incessantly risen, culminating in 72 reported accidents in 2023—circa sextuple of those in 2020. This series of incidents has catalyzed renewed interest in alternative solutions, with South Korea ramping up its focus on hydrogen fuel cell vehicles (HFCVs) as a safer and more sustainable option.

Globally, hydrogen fuel is rapidly emerging as a key player in the transition to green energy, offering solutions that address the limitations of traditional EVs. Its abundance, clean combustion properties, and versatility across applications—from transportation to industrial energy storage—position hydrogen as a cornerstone of the future energy economy. Unlike fossil fuels, hydrogen produces only water during use, making it an environmentally friendly alternative. With an increasing interest in climate change worldwide, with a global urgency to combat climate change, hydrogen’s potential to complement EVs fortifies its role in reshaping the transportation sector. 

2. HFCV vs. EV: A Comparative Analysis

A 2021 Life Cycle Assessment (LCA) study comparing HFCV and EVs using the Greenhouse gases, Regulated Emissions, and Energy use in Technologies  (GREET) model claimed HFCVs emit 70.7 kg CO₂ per 5 kg of hydrogen when powered by natural gas, but only 11.9 kg CO₂ when using renewable electrolysis. In contrast, EVs emit 20.8 kg CO₂ during energy production as battery manufacturing contributes significantly to their emissions. Notably, HFCVs fueled by green hydrogen consistently exhibited lower emissions compared to EVs.

In addition, the environmental impact of lithium-ion batteries in EVs is adverse: both manufacturing and disposal present substantial ecological threats. Lithium extraction involves chemical treatment (salt—flat brine) or intensive open—pit mining, both of which have severe environmental consequences. For instance, in 2009, a lithium mining project located in China (Guangzhou Rongda Lithium Mine) was blamed for leaking toxic chemicals into the Liqi River, destroying the marine ecosystem and sacred grassland. Similarly, land degradation caused by open—pit mining poses a significant environmental threat by destroying nearby habitats and causing substantial biodiversity loss; the expansion of Greenbushes lithium mine in Australia cleared circa 350 hectares of native vegetation, damaging threatened species such as black cockatoo and Western ringtail possum. 

3. Hydrogen Fuel: Pros and Cons

Hydrogen is ubiquitous; from water to organic compounds, hydrogen offers a nearly inexhaustible resource base. Unlike conventional fuels, hydrogen can be synthesised from a diverse range of renewable sources, including water through electrolysis, powered by solar or wind energy. Also, its combustion solely produces water vapour without any greenhouse gases. Furthermore, specific hydrogen energy is at 120 MJ/kg, nearly three times that of gasoline (44 MJ/kg), enabling efficient storage. Additionally, hydrogen serves diverse purposes, from powering vehicles and generating electricity to facilitating industrial processes and energy storage as a secondary energy source. 

Despite these advantages, hydrogen faces notable challenges. To be truly sustainable, hydrogen must be produced using renewable energy. For instance, green hydrogen, generated through electrolysis using renewable sources like wind or solar, remains energy— and cost-intensive. Current production costs range between US$3.2 and US$7.7 per kilogram due to process inefficiencies, with overall efficiency estimated at only 18-46 percent, compared to 70–85 percent for pumped—storage hydropower. However, technological advancements, such as Australian company Hysata's breakthrough achieving 98 percent electrolyzer efficiency in 2024, demonstrate the potential for significant cost reductions and efficiency gains. 

Despite these advantages, hydrogen’s low volumetric density presents storage and transportation challenges: compressing hydrogen to 700 bar and liquefying via cryogenic tanks consume circa 10-15 percent and 30 percent of its energy content, respectively. Additionally, its tendency to escape through materials and pipelines leads to energy losses, complicating large—scale deployment and infrastructure development. These obstacles have contributed to a shortage of hydrogen refueling stations, prompting a group of HFCV owners in California to file a lawsuit against Toyota in July 2024.

Safety Measures

HFCVs and EVs have distinct safety profiles shaped by their energy systems. A solid-state hydrogen storage fuel cell is considered to be “Very safe—release on demand. No explosion limits”, while a compressed gaseous hydrogen tank—based HFCV operates within a 4–75 percent explosion limit, posing manageable risks under controlled conditions. The refueling is swift with the solid-state system requiring 10-30 minutes and the tank—based system taking 3-5 minutes, reducing exposure to potential hazards.

EVs, on the other hand, face safety concerns primarily associated with lithium-ion battery thermal runaway, which can cause fires and explosions. Although EVs have a lower ignition rate (25 per 100,000 units) compared to gasoline vehicles (1,530) and hybrids (3,475) , EV fires are often more severe due to their tendency to reignite days after initial extinguishment. Additionally, prolonged charging times of up to 5 hours increase the risk of overheating.

4. Global Trend and Case Study

Global interest in hydrogen technology is promptly escalating; from just 23 countries in 2021, as of 2024, over 60 countries had implemented hydrogen strategies. Japan and South Korea are leading the market, holding over 50 percent of global HFCV shares . 

South Korea, in particular, stands out as a leader in the hydrogen economy. It operates approximately 220 hydrogen refueling stations and leads the world in HFCV adoption, with Hyundai’s Nexo dominating the domestic market. The 2019 Hydrogen Economy Roadmap aims to produce 2 million HFCVs and construct 1,200 stations by 2040. To encourage adoption, the South Korean government offers substantial financial incentives, up to US$26,000 in subsidies per HFCV purchase. With US$2.3 billion in investments in hydrogen infrastructure and R&D, South Korea’s “Green New Deal” accentuates its effort toward energy transition and sustainable mobility. In addition, on December 9th, 2024, South Korea Hydrogen Alliance was founded, aiming to deploy 300,000 HFCVs and establish over 660 refueling stations by 2030. 

5. Conclusion

Establishing a green hydrogen economy is an instrumental cornerstone to a cleaner and sustainable transportation and energy management future. Energy with inexhaustible resources, energy that emits no pollutants, and energy with various applications, from electricity to the production of industrial chemicals, hydrogen is indubitably one of the desirable mediums for energy storage. HFCVs are one of its applications with staggering potential to transform the transportation sector, which is currently highly dependent on petroleum.

However, realistic impediments include energy and cost—intensive procedures. Investments in increasing the efficiency of green hydrogen production, specifically renewable—powered electrolysis, are crucial to tackle high production costs. Innovations in storage and transportation technologies are essential to ensure safety and efficiency. Moreover, expanding hydrogen refueling stations is vital for commercialization. Yet, though hydrogen fuel technology is experiencing realistic impediments, its potential to revolutionize the energy sector cannot be denied. Hence, prioritizing technological breakthroughs via enhanced international collaboration in research and policy development would be pivotal to adopting hydrogen technologies.