This is an excerpt from the executive summary of a report, “Pathways to Commerical Liftoff: Clean Hydrogen,” prepared as an account of work sponsored by the U.S. Department of Energy. This report shows the huge potential hydrogen energy has within the near future.
“The U.S. clean hydrogen market is poised for rapid growth, accelerated by Hydrogen Hub funding, multiple tax credits under the Inflation Reduction Act (IRA) including the hydrogen production tax credit (PTC), DOE’s Hydrogen Shot, and decarbonization goals across the public and private sectors.1,i Hydrogen can play a role in decarbonizing up to 25% of global energy-related CO2 emissions, particularly in industrial/chemicals uses and heavy-duty transportation sectors.ii Achieving commercial liftoff will enable clean hydrogen to play a critical role in the Nation’s decarbonization strategy.
The clean hydrogen market will be accelerated by historic commitments to America’s clean energy economy, including equities in the Inflation Reduction Act (IRA) and the Infrastructure Investment and Jobs Act (IIJA). Together, these supply-side incentives can make clean hydrogen cost-competitive with incumbent technologies in the next 3–5 years for numerous applications.2 Hydrogen deployment is an opportunity to provide benefits to communities across America, including quality jobs, climate benefits, and decreased air pollution. As with all new technologies, significant care and attention must be paid during implementation to ensure deployment does not perpetuate existing inequities within the energy system.
Clean hydrogen production for domestic demand has the potential to scale from < 1 million metric ton per year (MMTpa) to ~10 MMTpa in 2030.iii Most near-term demand will come from transitioning existing end-uses away from the current ~10 MMTpa of carbon-intensive hydrogen production capacity.”
For a PDF of the complete report on “Hydrogen Energy Potential“, Click on this Link to the U.S. Department of Energy website. The PDF download link is at the bottom of their webpage.