Funding Will Advance Electrolysis Technology, Drive Down Clean Hydrogen and Fuel Cell Costs, Provide Long-term Support for Hydrogen Hubs and Other Industry Deployments
The Biden-Harris Administration, through the U.S. Department of Energy (DOE), announced its intent to issue $750 million in funding from President Biden’s Bipartisan Infrastructure Law to dramatically reduce the cost of clean-hydrogen technologies. The funding is a crucial component of the Administration’s comprehensive approach to accelerating the widespread use of clean hydrogen and will play a vital role in supporting commercial-scale hydrogen deployment. Produced with net-zero carbon emissions, clean hydrogen is a key pillar in the emerging clean energy economy and will be essential for achieving the President’s goal of a 100% clean electrical grid by 2035 and net-zero carbon emissions by 2050.
“Today’s announcement is yet another exciting step toward lowering the cost of and scaling-up clean hydrogen production, a versatile fuel essential to the nation’s historic transition to an equitable and secure clean energy future,” said U.S. Secretary of Energy Jennifer M. Granholm. “By investing in the cutting-edge research and development necessary to making market-ready clean hydrogen a reality, DOE is delivering on President Biden’s promise to implement an ambitious climate agenda.”
See related article: Biden-Harris Administration Announces $3.7 Billion to Kick-Start America’s Carbon Removal Industry
Clean hydrogen—which is produced with zero or next-to-zero emissions from renewables, nuclear energy, or natural gas with carbon sequestration—is set to play a vital future role in reducing emissions from some of the hardest-to-decarbonize sectors of our economy, including industrial and chemical processes and heavy-duty transportation. Clean hydrogen can also support the expansion of renewable power by providing a means for long-duration energy storage and offers flexibility and multiple revenue streams to all types of clean power generation—including today’s nuclear fleet, advanced nuclear, and other innovative technologies. By enabling diverse, domestic clean-energy pathways across multiple sectors of the economy, hydrogen will strengthen American energy independence, resiliency, and security. While hydrogen technologies have come a long way over the last several years, costs and other challenges to at-scale adoption need to be addressed for clean hydrogen to realize its full potential.
Together with the regional clean hydrogen hubs (H2Hubs), tax incentives in the President’s Inflation Reduction Act, and ongoing research, development, and demonstration in the DOE Hydrogen Program, these investments will accelerate the technical advances and scale-up needed to achieve DOE’s Hydrogen Shot goal of $1 per kilogram of clean hydrogen within a decade.
Managed by DOE’s Hydrogen and Fuel Cell Technologies Office (HFTO), projects funded through this opportunity will address underlying technical barriers to cost reduction that can’t be overcome by scale alone and ensure emerging commercial-scale deployments will be viable with future lower-cost, higher-performing technology. Reaching cost reduction goals will open new markets for clean hydrogen—creating more clean energy jobs, reducing greenhouse gas emissions, and strengthening America’s competitiveness in the global clean energy market.
By enabling a sustainable clean-hydrogen economy, these investments will help reduce harmful air pollution and decarbonize some of the economy’s most polluting sectors—including chemical and industrial processes and heavy transportation. Reducing emissions in these sectors will be especially beneficial for disadvantaged communities that have suffered disproportionately from local air pollution in the past. Additionally, DOE’s National Clean Hydrogen Strategy and Roadmap and President Biden’s Justice40 Initiative serve as important pillars driving the energy justice efforts by HFTO and the Hydrogen Program.