US Energy Dept. Updates Report on Clean Hydrogen Commercialization
TL/DR –
The U.S. Department of Energy (DOE) has published an update to its “Pathways to Commercial Liftoff: Clean Hydrogen” report predicting a rapid expansion of the U.S. clean hydrogen market. Factors accelerating this growth include the Infrastructure Investment and Jobs Act’s Regional Clean Hydrogen Hubs, the Inflation Reduction Act’s Clean Hydrogen Production Tax Credit, and the DOE’s ongoing research and development initiatives. The updated report reveals four main developments since the first report: the US is on track to reach 7-9 MMTpa in operational production capacity by 2030, developers are facing higher production cost estimates, industrial sectors continue to drive near-term demand, and new clean hydrogen production technologies, such as methane pyrolysis, are emerging.
DOE Releases New Update on Clean Hydrogen Market
The U.S. Department of Energy (DOE) has released a new update to its Pathways to Commercial Liftoff: Clean Hydrogen report. The U.S. clean hydrogen market is set for significant growth, with programs like the Regional Clean Hydrogen Hubs, the Clean Hydrogen Production Tax Credit (45V), and DOE’s clean hydrogen technology research and deployment driving this expansion.
The DOE’s Loan Programs Office is also backing several large-scale clean hydrogen projects, including a $1.04 billion commitment to a natural gas pyrolysis project with Monolith, a $504.4 million loan guarantee for an electrolysis and energy storage facility, and a $1.66 billion loan guarantee for up to six nationwide electrolysis projects with Plug Power.
Update Highlights
The updated Pathways to Commercial Liftoff: Clean Hydrogen report addresses four major developments since the original publication:
| 1. The U.S. is set to reach 7-9 MMTpa in operational production capacity by 2030. |
| 2. Developers face higher production costs due to increased electricity prices, installation costs, and cost of capital. |
| 3. Industrial sectors continue to drive near-term demand, with an increasing number of projects servicing export markets. |
| 4. Promising clean hydrogen production technologies like methane pyrolysis and geologic hydrogen drilling continue to develop. |
This update is the fifteenth installment in the DOE’s Pathways to Commercial Liftoff series. These reports, which serve as “living documents,” develop a roadmap for the full-scale deployment of transformative clean energy technologies based on data from federal agencies and private sector insight.
The DOE develops these reports with extensive stakeholder engagement and system modeling. For more information or to provide public input, contact the DOE via email at liftoff@hq.doe.gov or visit the official Liftoff webpage.
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