“Securing America’s position as the undisputed global energy leader will hinge on our ability to rapidly scale energy deployments. Energy demand is surging, driven by electrification, data centers and a resurgence of domestic manufacturing,” U.S. Representative Don Bacon (R-NE-02) and Citizens for Responsible Energy Solutions (CRES) President Heather Reams wrote in an op-ed published in RealClearEnergy in March. “To ensure a reliable, affordable energy supply, we must tap into the full potential of our abundant natural resources while advancing next-generation energy solutions like hydrogen,” they elaborated.
The authors discussed the importance of hydrogen power to the global economy moving forward. The International Chamber of Shipping and the International Energy Agency expect global demand for the fuel to increase across multiple sectors by mid-century, particularly aviation, trucking, and shipping. The Hydrogen Council added that 40 million metric tons (MMT) of hydrogen could be transported across long distances by pipelines or ships by 2035, representing a $120 billion opportunity. Meanwhile, McKinsey estimated that by 2030, the industry could employ 700,000 Americans and create $140 billion in annual revenue.
“If the U.S. seizes this opportunity, hydrogen could become a cornerstone of our nation’s energy trade, benefiting American workers, industries and communities, as well as our national security,” Rep. Bacon and Reams explained. They noted that with resources ideal for hydrogen production–including biogas, natural gas, nuclear power, and clean energy–workers with skills that are transferable for success in the hydrogen industry, and geologic formations that are ideal for hydrogen storage, America is poised to capitalize on this opening and develop a thriving hydrogen economy.
According to the U.S. Department of Energy, the country already produces about 10 million metric tons (MMT) of hydrogen per year. While this fuel is currently used to produce ammonia and refine petroleum, the authors claim that if used solely to generate electricity, it could provide power to 18 million residences annually. Opportunities abound in other industries, too, Rep. Bacons and Reams said: “The development of advanced, low-carbon hydrogen presents a major opportunity to expand its role in other sectors. Scaling up advanced hydrogen production can unlock our ability to efficiently power and decarbonize industry, fuel heavy-duty and commercial vehicles, and provide long-term energy storage.”
Photo Courtesy Monolith Corporation
The hydrogen industry already benefits from supportive federal policies, the authors explained. They point to the Department of Energy’s Regional Hydrogen Hub, which Rhodium Group estimates has spurred $44 billion in investments since 2021, and the Section 45V tax credit for the production of clean hydrogen. “Combined, these policies are reducing risks faced by entrepreneurs and investors in the development of innovative hydrogen projects throughout every region of the country,” they posited.
However, Rep. Bacon and Reams admit that there is still work to be done, especially in the face of competition from China, whose subsidies and long-term hydrogen plan see it placing increasing emphasis on a technology of which it is already the largest producer, accounting for 65% of the world’s electrolyzer capacity. “Maintaining U.S. policy support for advanced hydrogen will be critical to asserting America’s competitive edge in this emerging sector,” the authors argued, highlighting the importance of private-sector investment in technological innovation and federal permitting reforms to speed up the construction of necessary infrastructure.
The op-ed adds that President Trump’s executive order on Unleashing American Energy has already demonstrated the “administration’s commitment to reasserting America’s leadership in energy production and technological innovation,” with permitting reform efforts already underway. However, Rep. Bacon and Reams concluded, “Sustaining targeted federal incentives for next-generation technologies will also be essential to solidify America’s leadership in the global energy economy. The alternative is ceding ground to adversarial competitors like China—an outcome that would weaken our energy security, slow economic growth and undermine American innovation.” As the House reconciliation bill that largely axes energy tax credits advances, the impetus is on the Senate to save these necessary incentives.
