Hydrogen is considered a key element in the search for clean and sustainable energy solutions due to its ability to produce energy with minimal emissions of harmful gases. The lightest element in the universe, hydrogen is extremely attractive for decarbonizing hard-to-transform sectors such as transport and industry. However, the use of hydrogen as a fuel faces challenges such as production, storage, distribution and safety. The global energy crisis and climate change have stimulated intensive research for its wider application. Hydrogen can be produced in a number of ways, including electrolysis and thermochemical processes, where "green" hydrogen, obtained from renewable sources, is the purest form. On the other hand, "grey" and "brown" hydrogen are produced from fossil fuels, often with large amounts of CO₂. Steam methane reforming (SMR) is currently the most widespread method of hydrogen production, while "blue" hydrogen, although using fossil fuels, reduces emissions by capturing and storing CO₂. The produced hydrogen is used in fuel cells where electrochemical reactions produce electricity, water and heat as the only by-products, which represents a significant departure from fossil fuels that release carbon dioxide and other harmful emissions. Hydrogen has the potential to significantly increase energy efficiency and reduce dependence on conventional energy sources. Despite the advantages, the wider use of hydrogen still requires solving technical and economic obstacles. The aim of this paper is to provide a deeper insight into the potential and challenges of hydrogen as an alternative fuel, to analyze existing technologies, integration into energy systems, and economic and safety aspects of implementation. Hydrogen represents a promising direction in achieving a sustainable energy future, but further research and development is necessary to maximize its potential.