U.S. Energy Department Unveils Report on Thermal Conversion Pathways for Clean Hydrogen Production

The U.S. Energy Department has released the first of three assessments on pathways to clean hydrogen production under its Hydrogen Shots initiative, which aims to lower the cost of clean hydrogen by 80 percent to $1 per kilogram by 2031.  The report focuses on pathways to reach the goal through thermal conversion, a process that uses heat energy to drive chemical reactions that convert carbon-based feedstocks into fuels and chemical energy carriers. In the next two assessments, the department will cover electrolysis pathways and advanced pathways.

The findings were announced at the United Nations Framework Convention on Climate Change’s 28th Conference of the Parties (COP28) in Dubai. The department underscored  that the report comes at a critical time for hydrogen technology, as a growing number of countries recognize the role of hydrogen in meeting global climate goals while being aware of the need for cost reductions to make progress.

The report highlights the potential for significant cost reduction in hydrogen production, estimating a range between $1.30 and $1.40 per kilogram through technological advancements. The assessment focuses on producing clean hydrogen through thermal conversion of fossil and/or waste feedstocks (with carbon capture and sequestration) that could meet the Hydrogen Shot goal. Beyond research and development improvements, the report explored several factors including plant scale, diverse market scenarios, selecting favorable plant site locations, optimizing carbon dioxide transport and storage, exploring byproduct sales, valuing captured CO2, and integrating with other energy systems.

Launched in June 2021, Hydrogen Shot is the first in a series of Energy Earthshots initiative, which aims to drive breakthroughs of critical clean energy technologies within the decade. Despite growing industry interest in clean hydrogen initiatives for emission reduction, challenges to widespread technology deployment persist. Meeting the Hydrogen Shot goal is anticipated to open up new markets, including energy storage and heavy-duty trucks, potentially leading to a five-fold increase in clean hydrogen utilization.

The department recently announced $7 billion to establish regional clean hydrogen hubs across the nation, aligning with the U.S. National Clean Hydrogen Strategy and Roadmap released in June. This comprehensive roadmap outlines a strategic framework to accelerate the production, processing, delivery, storage, and use of clean hydrogen, with specific strategic opportunities targeting 10 million metric tonnes (MMT) annually by 2030, 20 MMT annually by 2040, and 50 MMT annually by 2050. The roadmap underscores that using clean hydrogen has the potential to reduce U.S. emissions by approximately 10 percent by 2050 relative to 2005 levels, aligning with the country’s long-term climate strategy.