Hydrogen has been widely recognised as a versatile and environmentally-friendly energy carrier, with a broad range of potential applications across various sectors. The abundance of hydrogen in the universe and its high energy content makes it an attractive alternative to conventional fossil fuels. Moreover, the utilization of hydrogen does not produce greenhouse gases or other pollutants that contribute to air pollution and climate change. In recent years, there has been a growing interest in developing and deploying hydrogen technologies for a sustainable energy future. This paper provides an in-depth exploration of the potential of hydrogen as a clean energy source in different sectors, such as transportation, energy storage, power generation, industry, buildings, maritime transport, and aviation. The aim of the paper is to provide an overview of the current state of hydrogen applications in Europe and the Baltic States, including examples of ongoing projects and initiatives, and to assess the advantages and disadvantages of hydrogen technologies in different sectors. The main results of the paper highlight that hydrogen has the potential to significantly reduce greenhouse gas emissions and achieve carbon neutrality targets. However, the deployment of hydrogen technologies also faces various challenges such as high production costs, lack of infrastructure, and safety concerns. The tasks of the paper are to provide an insight into the potential of hydrogen, identify the challenges and limitations, and highlight ongoing research and development efforts in this field. The paper concludes that the widespread adoption of hydrogen technologies is a long-term goal that requires the cooperation of various stakeholders and the development of innovative and cost-effective solutions. Despite the challenges, the current state of hydrogen applications and ongoing projects in Europe and the Baltic States demonstrate that hydrogen has the potential to play a significant role in the transition to a sustainable and low-carbon future.