U.S. Energy Department Invests Nearly $34 Million to Advance Clean Hydrogen Technology

The U.S. Energy Department has awarded nearly $34 million to 19 projects led by industry and universities to increase the affordability and availability of clean hydrogen, which has applications in the fields of power generation, industrial decarbonization, and transportation. Hydrogen is an emission-free fuel and can be used for electricity production through fuel cells or gas turbines, resulting in only heat and water as byproducts. Hydrogen production from renewables, nuclear, as well as converted natural gas with carbon capture is considered crucial for climate action. Currently,  10 million metric tons of hydrogen is produced in the U.S. of which, more than 95 percent is from natural gas without carbon capture. This investment will help advance projects that support the nation’s goal of achieving a 100 percent clean electric grid by 2035 and a net-zero economy by 2050, while aligning with the department’s Hydrogen Shot initiative.

The selected projects focus on innovative approaches to clean hydrogen production, storage, and transportation. These include developing advanced air separation units, exploring methane pyrolysis methods, and investigating subsurface hydrogen storage, which aim to reduce energy consumption, enhance efficiency, and advance technologies crucial for a net-zero carbon economy.

Hydrogen Shot, the first program under the Energy Earth shots Initiative launched in June 2021, seeks to lower the cost of clean hydrogen by 80 percent to $1 per kilogram by 2030, down from the current level of $5 per kilogram. Although industries are beginning to implement clean hydrogen initiatives to cut emissions, the department notes that barriers remain to deploying the technology at scale. Achieving the Hydrogen Shot goal is expected to unlock new markets such as energy storage and heavy-duty trucks, and result in at least a five-fold increase in clean hydrogen use.

The department recently announced that it received 79 concept papers in response to its September 2022 request for proposals to create regional clean hydrogen hubs (H2Hubs) across the country as part of an $8 billion program funded through the 2021 Infrastructure Investment and Jobs Act, where 33 applicants were encouraged to move forward to submit full applications. State coalitions that submitted applications include the seven-state Northeast Regional Clean Hydrogen Hub, Southeast Hydrogen Hub, and Western Interstate Hydrogen Hub. In several states, including Hawaii, Mississippi, and Pennsylvania, lawmakers passed resolutions urging the Biden administration to select their applications for establishing clean energy hubs.