Rapid industrialization is consuming too much energy, and non-renewable energy resources are currently supplying the world’s majority of energy requirements. As a result, the global energy mix is being pushed towards renewable and sustainable energy sources by the world’s future energy plan and climate change. Thus, hydrogen has been suggested as a potential energy source for sustainable development. Currently, the production of hydrogen from fossil fuels is dominant in the world and its utilization is increasing daily. As discussed in the paper, a large amount of hydrogen is used in rocket engines, oil refining, ammonia production, and many other processes. This paper also analyzes the environmental impacts of hydrogen utilization in various applications such as iron and steel production, rocket engines, ammonia production, and hydrogenation. It is predicted that all of our fossil fuels will run out soon if we continue to consume them at our current pace of consumption. Hydrogen is only ecologically friendly when it is produced from renewable energy. Therefore, a transition towards hydrogen production from renewable energy resources such as solar, geothermal, and wind is necessary. However, many things need to be achieved before we can transition from a fossil-fuel-driven economy to one based on renewable energy.