Hydrogen as a Game-Changer? Clean Transport Solutions for the Developing World

The World Bank's report explores the potential of hydrogen fuel cell vehicles in developing countries, highlighting their promise in heavy-duty and niche transport sectors despite current cost challenges. With targeted policies and infrastructure, hydrogen could complement battery electric vehicles in the global clean transport transition.

In a bold exploration of the future of clean transport, the World Bank’s latest report, Clean Hydrogen for Road Transport in Developing Countries, developed in partnership with Ricardo Energy & Environment and the International Council on Clean Transportation (ICCT), delves into the prospects and challenges of deploying hydrogen fuel cell electric vehicles (FCEVs) in the developing world. This timely report casts a wide net, analyzing the transport landscapes of Brazil, Chile, India, South Africa, and the Republic of Korea. It weighs hydrogen's potential not only as a climate solution but also as a catalyst for energy security and industrial innovation. The research underscores that while battery electric vehicles (BEVs) dominate today’s decarbonization narrative, hydrogen may still hold critical value in specific transport niches.

When Batteries Fall Short, Hydrogen May Step In

BEVs have surged globally in recent years, driven by improving affordability, expanded charging infrastructure, and ambitious policy support. Yet, as the report outlines, they are not a one-size-fits-all solution, particularly in countries with uneven electricity access, rugged terrains, and high-utilization vehicle fleets. In such contexts, FCEVs offer notable advantages. They provide faster refueling, longer ranges, and better performance under heavy loads or extreme weather. For instance, hydrogen buses in California currently deliver up to 350 miles per fill, significantly outperforming BEV buses that typically cap out at half that range. In cities grappling with both congestion and pollution, common across many developing economies, these traits position hydrogen as a strong alternative, especially for transit buses and freight trucks.

Cost Remains the Elephant in the Room

Despite hydrogen’s technical promise, the economics remain daunting. The report highlights that green hydrogen, produced using renewable energy, is still expensive to produce, store, and distribute. Hydrogen vehicles themselves are pricier than their battery-electric counterparts. Economic modeling in the report shows that even by 2030, BEVs are likely to retain a cost advantage across all major vehicle categories. However, when broader societal benefits are factored in—such as reduced air pollution, lower healthcare costs, and long-term climate resilience—the hydrogen option begins to close the gap. Countries like India and South Korea, facing high environmental costs, may find that FCEVs offer value beyond traditional cost-benefit analysis. Still, the report cautions that large-scale hydrogen deployment without targeted policy and infrastructure support would be premature and potentially unsustainable.

Green Hydrogen Strategies Take Root in the South

Some developing countries are already taking decisive steps to incorporate hydrogen into their energy transitions. India’s National Green Hydrogen Mission is one of the world’s most ambitious, aiming to produce up to 10 million tons of green hydrogen annually by 2030. The strategy is closely tied to reducing fossil fuel imports, strengthening industrial competitiveness, and lowering national emissions by 50 million tons. Chile, with its abundant solar and wind resources, is another emerging hydrogen leader. Its National Green Hydrogen Strategy sets out to install 25 GW of electrolyzer capacity by 2030, with the dual aim of supplying domestic industries and positioning the country as a major exporter. These national strategies reflect a growing recognition that hydrogen, if deployed wisely, could unlock not only cleaner transport but broader economic opportunities in clean energy.

Targeting the Right Use Cases Is Key

A core conclusion of the report is that hydrogen’s success in road transport hinges on careful market segmentation. It is unlikely to become the dominant technology for light-duty passenger vehicles, where BEVs already enjoy scale and cost leadership. But for heavy-duty vehicles, buses, and specialized applications such as refrigerated trucks or long-haul routes in remote areas, hydrogen could be a game-changer. These high-demand segments often stretch the limits of battery technology, making FCEVs a better technical fit. In polluted urban centers, where diesel fleets contribute heavily to respiratory illness and smog, clean hydrogen vehicles could deliver major public health dividends—particularly if supported by government incentives, carbon pricing, or congestion zone policies.

Infrastructure and Policy Will Make or Break Hydrogen’s Future

To capitalize on hydrogen’s potential, the report emphasizes the urgent need for strategic infrastructure investment. One particularly promising idea is the development of "Green Hydrogen Corridors"—integrated transport and energy networks linking renewable-rich regions with urban and industrial centers. These corridors could enable economies of scale and help reduce costs along the hydrogen value chain. Examples like Europe’s H2Med and SouthH2 corridors offer useful blueprints, while India’s Green Energy Corridor could be adapted for hydrogen delivery. The report also calls for coherent national policies that align hydrogen deployment with renewable electricity planning, create enabling environments for public-private partnerships, and encourage local manufacturing of hydrogen technologies.

Ultimately, the World Bank report stops short of presenting hydrogen as a silver bullet. Instead, it presents a thoughtful roadmap for how developing countries might use hydrogen to complement battery electric transport solutions. With the right mix of technology, regulation, and targeted investment, hydrogen could emerge not just as an energy carrier but as a strategic tool for cleaner, healthier, and more resilient transport systems in the Global South.