Building a Hydrogen Future: Policy and Infrastructure Investments in the U.S.
Key Ideas
- Hydrogen production in the U.S. has the potential for significant growth, offering a clean energy solution for the industrial sector and supporting climate goals.
- The development of midstream infrastructure, such as pipelines and storage, is crucial to the effectiveness of a hydrogen system and needs significant expansion in the U.S.
- Other countries like Oman and Denmark are already investing heavily in hydrogen infrastructure, highlighting the need for the U.S. to catch up to remain competitive globally.
- Policy and investment coordination between industry and government, like seen in Europe, can accelerate the growth of the hydrogen industry in the U.S., creating a cost-competitive and sustainable future.
The article discusses the potential for building a domestic clean hydrogen industry in the U.S. through the IRS's upcoming 45V tax credit rules. It emphasizes that increasing manufacturing and energy production in the country is not only beneficial for the economy but also for strong climate policy, given the environmental standards in the U.S. Hydrogen is highlighted as a clean fuel that produces no carbon when burned, making it a viable option for various industries like steel, cement, and chemicals.
The piece underscores the importance of policies that support clean energy projects and the urgency for deployment, particularly referencing the Department of Energy's Hydrogen Hubs initiative. It also mentions the crucial need for midstream distribution and storage infrastructure, like pipelines and storage facilities, to effectively support hydrogen usage in the country.
The article draws attention to the significant growth potential of clean hydrogen production, estimating a substantial increase in production by 2030 to meet domestic demand. It compares the progress in hydrogen infrastructure in the U.S. with other regions like the Middle East and EU, where substantial investments are being made.
Furthermore, the article stresses the importance of policy coordination between industry and government to drive investments in the hydrogen sector. It highlights the need for federal regulations, cost competitiveness, and incentives like the hydrogen production tax credit to advance the industry. The piece concludes by emphasizing the need for the U.S. to act swiftly to embrace the hydrogen vision to avoid falling behind in the global race towards a sustainable energy future.