The University of Wyoming researchers, led by Haibo Zhai, conducted an analysis on the economic impacts of current federal incentives on large-scale blue hydrogen production. The study, published in Nature Communications, focused on the evolution of blue hydrogen production technologies towards the U.S. Hydrogen Energy Earthshot Initiative. The research evaluated the role of tax credits, specifically the 45Q tax credit for carbon sequestration and the 45V tax credit for clean hydrogen production, in promoting the development of blue hydrogen projects. The study highlighted the potential of blue hydrogen, produced from fossil fuels with carbon sequestration, to reduce production costs, lower emissions, and create new economic opportunities. By applying experience curves, the researchers estimated the evolving costs of blue hydrogen production and the economic impact of tax credits, natural gas prices, inflation rates, and learning rates. Despite uncertainties, the study concluded that experience gained from deploying blue hydrogen projects could lead to cost reductions and maintain cost competitiveness, especially with extended tax incentives for carbon sequestration. Funding for the study was provided by the Hydrogen Energy Research Center within UW's School of Energy Resources, emphasizing the support for research on hydrogen production methods and the potential for a new hydrogen economy in the U.S.