The U.S. Department of Energy (DOE) announced that $750 million is now available to fund research, development and demonstration efforts aimed at bringing down the cost of clean hydrogen.
The federal allocation – from the Infrastructure Investment and Jobs Act (IIJA) – is the first half of a total of $1.5 billion in funding dedicated to advancing electrolysis technologies and improving manufacturing and recycling capabilities.
The Biden Administration believes this funding will help accelerate commercial-scale hydrogen deployment this decade. The Administration’s goal is a 100% clean electrical grid by 2035 and net-zero carbon emissions by 2050.
Multiple studies have derived deep decarbonization pathways by integrating large amounts of hydrogen into many sectors of the economy. However, these studies generally require large amounts of new capital expenditures and a significant reworking of the energy and transportation sectors to achieve their goals.
MORE: When it comes to hydrogen, we’re probably overestimating NOx emissions. Here’s why.
The $1.2 trillion IIJA, signed into law in November 2021, includes several hydrogen-specific provisions aimed at driving large-scale deployment and investment in the hydrogen industry.
The bill includes the creation of large-scale clean hydrogen hubs, funding for clean hydrogen electrolysis research and development and efforts to promote clean hydrogen manufacturing and recycling. Additionally, the bill directed the federal government to develop the country’s first national hydrogen roadmap and strategy.
Through the regional clean hydrogen hubs, tax incentives in the Inflation Reduction Act (IRA) and other ongoing research, development and demonstration efforts, the current DOE has a goal of being able to produce $1 per kilogram of clean hydrogen within a decade.
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