Wondering about green hydrogen vs biofuels? They are different routes to clean fuel: hydrogen splits water with renewable electricity, while biofuels convert plant and waste material into liquid fuels.
Both belong to the wider topic of what is renewable energy, but they work in very different ways.
| Item | Value |
|---|---|
| Global hydrogen demand, 2024 | Nearly 100 million tonnes |
| Low-emissions share of hydrogen supply, 2024 | Less than 1% |
| Low-emissions hydrogen capacity projected for 2030 | 37 million tonnes per year |
| Example of typical biodiesel input proportions | 100 pounds of vegetable oil or fat, typically reacted with 10 pounds of methanol |
| Common biodiesel blend in diesel | B20 (6 to 20 percent biodiesel) |
The figures come from a summary of the IEA’s Global Hydrogen Review 2025 and University of Illinois farmdoc daily. They can change, so check the sources before you rely on them.
What each fuel actually is
Hydrogen is a gas made of a single element. The Alternative Fuels Data Center (AFDC), a US Department of Energy resource, says hydrogen can be produced from “a variety of domestic resources, including fossil fuels, biomass, and water through electrolysis using electricity” (AFDC hydrogen page).
Biofuels are liquid or gaseous fuels made from biological material such as oils, fats, sugars and residues. Ethanol, biodiesel and renewable diesel are the best-known examples.
So the starting points differ. Green hydrogen starts with water and electricity, and biofuels start with biomass.
How green hydrogen is made
The AFDC describes electrolysis in one line: “An electric current splits water into hydrogen and oxygen.” It adds that “power-to-hydrogen projects are taking off, using excess renewable electricity, when available, to make hydrogen through electrolysis” (AFDC).
Hydrogen is only “green” when the electricity is renewable. Most hydrogen today comes from another route: the AFDC says “natural gas reforming using steam accounts for the majority of hydrogen produced in the United States annually” (AFDC).
The AFDC also lists biomass-derived liquid reforming, where renewable liquids such as ethanol are reacted with steam to produce hydrogen.
How biofuels are made
Biodiesel is made by transesterification. Farmdoc daily explains that this “converts organic fats and oils into fatty acid alkyl esters by reacting them with alcohols and catalysts”. In a typical batch, “100 pounds of vegetable oil or fat is typically reacted with 10 pounds of methanol to produce about 100 pounds of biodiesel and 10 pounds of glycerol” (farmdoc daily, 2023).
Renewable diesel uses a different route. Hydrotreating “parallels the process used to ‘crack’ crude oil into gasoline, diesel, and other petroleum products in a crude oil refinery” (farmdoc daily).
Hydrotreating needs hydrogen as an input, which is one place the two fuels connect. Biogas, another biofuel, comes from digesting wet waste; see how does anaerobic digestion work for that process.
Scale today: where each stands
Hydrogen is a large market, but a mostly fossil one. A summary of the IEA’s Global Hydrogen Review 2025 says “global hydrogen demand reached nearly 100 million tonnes in 2024, low-emissions hydrogen accounts for less than 1% of total supply, despite annual growth of 10%” (SolarQuarter).
The same summary says projected low-emissions capacity for 2030 is 37 million tonnes per annum, “a downward revision from earlier forecasts due to project delays and cancellations”. Green hydrogen is therefore early in its build-out.
Liquid biofuels are already blended into everyday fuel. Biodiesel, for example, is commonly sold as B5 (up to 5 percent biodiesel) or B20 (6 to 20 percent biodiesel), according to farmdoc daily.
That gives the two fuels very different starting positions. Biofuels are an established, blended product with working supply chains and a long record in engines.
Green hydrogen is closer to a fast-growing newcomer. It needs new electrolysers, new renewable power and, for many uses, new pipelines, storage or vehicles.
Which uses suit which fuel?
The choice depends on the job, not on a single winner. A rough guide:
- Industry that already uses hydrogen: green hydrogen can replace the fossil-made supply.
- Aviation and shipping: liquid fuels are easier to carry than gas, so liquid biofuels and hydrogen-derived fuels are both being explored.
- Waste-heavy regions: residues and wet waste favour biofuels and biogas.
Carbon matters too. A fuel’s footprint depends on how it is made, which is covered in carbon intensity of fuels, a sibling guide on this site.
Why the production steps matter for the climate
A fuel is only as clean as its inputs. Electrolysis powered by coal-heavy electricity does not make clean hydrogen, however green the label sounds.
For biodiesel, the inputs are the oil or fat, the methanol and the energy used in the plant. Methanol typically serves as the reactant and creates fatty acid methyl esters, per farmdoc daily, and the glycerol left over is a co-product that has to be handled.
For renewable diesel, the hydrogen used in hydrotreating adds its own footprint, so how that hydrogen was made feeds back into the fuel’s result. This is one more reason to compare fuels on a full life-cycle basis rather than by name.
When you read a claim about a fuel, ask three questions:
- What is the feedstock: water and power, or oils, fats, sugars and waste?
- Where does the energy for conversion come from?
- Which life-cycle method was used to count emissions, and what does it include?
Strengths and limits
Green hydrogen needs plentiful renewable electricity, and its supply is still small. Moving it is also unsettled: the AFDC says transporting hydrogen through existing natural gas pipelines “is being investigated, but the costs and technical viability are not yet fully understood” (AFDC).
Biofuels depend on feedstock, meaning the oils, fats, sugars and residues that go in. Their supply is limited by how much sustainable material is available.
Neither fuel is a complete answer. Many energy plans expect both, alongside direct electrification.
A fair summary of the trade-offs:
- Green hydrogen: clean in use and flexible, but small in supply today, and costly to move and store.
- Biofuels: biodiesel is commonly blended as B5 or B20, but biofuels are limited by sustainable feedstock.
- Shared need: both rely on honest life-cycle accounting to show a real benefit.
Policy will shape how fast each grows. Because the IEA’s capacity projection was revised down, as the summary notes, treat any single forecast as a snapshot rather than a promise.
Frequently asked questions
Is green hydrogen a biofuel?
Show answer
No. Green hydrogen comes from splitting water with renewable electricity. Some hydrogen can be made from biomass, but that is a separate pathway.
Do biofuels use hydrogen?
Show answer
Renewable diesel does. The hydrotreating process reacts the feedstock with hydrogen over a catalyst, according to farmdoc daily.
Is most hydrogen green today?
Show answer
No. As of the IEA’s Global Hydrogen Review 2025, as summarised by SolarQuarter, low-emissions hydrogen was less than 1% of supply in 2024.
Can I put biofuel in my diesel car?
Show answer
Check your manufacturer’s guidance. Blends such as B5 and B20 are common, but approval varies by vehicle.
