RMP has been advocating for the Hydrogen Economy and creating one of the most comprehensive GIS databases of hydrogen infrastructure in North America since 2008. What RMP never expected would be all the “anti” hydrogen takes, slander, and libel against hydrogen. Somehow, the narrative turned to batteries -vs- hydrogen which RMP long ago has called a red herring argument. We don’t have to choose between batteries and hydrogen, we will need both technologies. RMP supports environmentally responsible battery mining and mineral processing done right here in North America. In fact, batteries are ironically a very important part of the hydrogen economy. When it comes to batteries and hydrogen, it has never been either/or, it’s always been both.
The hydrogen economy is an enormously diverse and all encompassing concept. Hydrogen is a common denominator in energy and waste management. It can be made from water, trash, human waste, animal farm waste, food waste, nuclear, natural gas, coal, hydro, sun, wind and many other ways. Hydrogen for vehicles is just part of the hydrogen economy and all hydrogen FCEVs require batteries. The concept is to have a sustainable and prosperous economy with hydrogen as a common denominator.
As the world seeks to transition to a low-carbon future, hydrogen is seen as a critical component due to its versatility and potential to decarbonize sectors that are hard to electrify, such as heavy industry, transportation, and energy storage. Recent legislative actions, particularly the Inflation Reduction Act (IRA) of 2022, have accelerated investments in the hydrogen sector, leading to substantial growth in both electrolyzer manufacturing and hydrogen production.
U.S. Investments and the Inflation Reduction Act (IRA)
The Inflation Reduction Act (IRA) marked one of the largest energy investment efforts in U.S. history and it helped set the foundation for a modern hydrogen economy. The law introduced incentives designed to reduce emissions while strengthening domestic manufacturing and energy production. While the policy environment has evolved under the current administration (Trump #47), the IRA continues to influence investment decisions across the hydrogen industry.
The most important provision for hydrogen development is the 45V hydrogen production tax credit, which can provide up to $3 per kilogram for low carbon hydrogen depending on the carbon intensity of the production method. The credit structure encourages cleaner hydrogen production pathways and has helped move many early stage projects from concept toward development.
Since the law was passed, companies and investors have spent several years planning projects around these incentives. Some federal programs and funding streams are currently being reviewed or adjusted, and several regional hydrogen hub projects have experienced delays as agencies evaluate priorities and budgets. Even so, many companies continue moving forward with private investment, long term planning, and pilot scale deployments.
At the same time, states, utilities, and industrial companies continue to explore hydrogen for heavy transport, shipping, steel, chemicals, and power generation. Hydrogen remains one of the few energy carriers that can decarbonize sectors that electricity alone cannot easily reach. Because of this, interest in hydrogen development continues across both public and private sectors.
Growth in Electrolyzer Manufacturing
Electrolyzers are the machines that split water into hydrogen and oxygen. They are the key technology needed to produce green hydrogen using renewable electricity.
The IRA incentives helped trigger a wave of announcements for new electrolyzer factories in the United States. Several companies have expanded manufacturing plans in order to serve the expected growth in hydrogen production over the coming decades.
Even with changing policy timelines, companies continue investing in manufacturing capacity because the long term demand outlook remains strong. Hydrogen is expected to play a role in energy storage, industrial processes, heavy transportation, and synthetic fuels.
Over time, the cost of electrolyzers is expected to fall as factories scale up and supply chains mature. This is similar to what happened with solar panels and lithium batteries. As manufacturing increases, equipment becomes cheaper and deployment accelerates.
Hydrogen itself is one of the most abundant elements in the universe. On Earth, most hydrogen exists inside water molecules (H2O), just as silicon is widely available in sand (SiO2). This means the basic ingredients for hydrogen production exist almost everywhere. The key challenge is building the infrastructure and equipment needed to produce, store, and transport it efficiently.
Hydrogen Production Growth
Hydrogen production projects across the United States continue to expand as companies test new technologies and build early commercial facilities. Lower renewable energy costs and improving electrolyzer technology are making green hydrogen increasingly competitive.
The 45V tax credit has helped improve the economics of these projects, even as some program details continue to evolve. Developers are still planning projects in regions with strong renewable energy resources such as the Southwest and parts of the Midwest.
Large scale hydrogen production proposals have been announced in several states where solar, wind, and industrial demand are close together. These projects aim to supply hydrogen for fertilizer production, steel manufacturing, heavy trucking, and shipping fuels.
The U.S. Department of Energy also launched a program to support regional hydrogen hubs, often called H2Hubs. These hubs are designed to connect hydrogen production with nearby industries that can use the fuel. Some of these projects are moving forward while others are adjusting timelines as funding and partnerships develop.
Even when projects move slowly, the long term direction remains clear. Hydrogen infrastructure requires time to plan, finance, and build, but each new project helps develop the experience and supply chains needed for larger deployment in the future.
Global Progress and China’s Leadership
Hydrogen development is not happening in isolation. Countries around the world are investing in hydrogen technologies as part of their long term energy strategies.
China has become the global leader in hydrogen manufacturing, deployment, and fuel cell vehicle adoption. The country has built large fleets of hydrogen trucks and buses and has invested heavily in electrolyzer production, hydrogen refueling stations, and industrial hydrogen projects.
China’s national planning system also plays a role. The government regularly sets long term industrial goals through its Five Year Plans. Hydrogen development has been included in recent planning cycles, and the upcoming 15th Five Year Plan is expected to provide further direction for hydrogen technology, infrastructure, and fuel cell deployment.
As the hydrogen economy grows, developments in China will be important to watch. Many of the largest hydrogen manufacturing and deployment efforts are happening there, and lessons from those projects can help guide development in other countries.
Conclusion
The hydrogen economy continues to evolve in the United States. The Inflation Reduction Act helped accelerate early investment and planning, even as the policy landscape continues to adjust with changes in administration and budget priorities.
Electrolyzer manufacturing is expanding, hydrogen production projects are being tested at larger scales, and new infrastructure concepts are being explored. These developments are building the foundation for a future hydrogen energy system.
At the same time, global progress continues, with China currently leading many areas of hydrogen deployment and manufacturing. Watching these international developments will provide valuable insights as hydrogen technologies continue to mature.
Hydrogen will not replace every energy source, but it offers a powerful tool for industries that are difficult to electrify. As technology improves and infrastructure grows, hydrogen is likely to become an increasingly important part of the global energy mix in the decades ahead.