U.S. Hydrogen Sector Awaits Fate Amidst Trump Administration Policy Changes
Key Ideas
  • Stakeholders in the U.S. hydrogen sector are hopeful for a breakthrough with senators to enhance project economics and lower emissions.
  • Hydrogen is being considered for use in reviving nuclear sites, sustainable aviation fuel production, and in synergy with natural gas for blue hydrogen production.
  • Legislators are working on finalizing a reconciliation bill that could impact clean energy tax credits, including the hydrogen production tax credit.
  • Despite challenges and uncertainties, members of the hydrogen industry are optimistic and continue to advocate for extending the tax credit to drive project development.
As the U.S. hydrogen sector navigates changes in policy under the Trump administration, stakeholders are actively seeking opportunities to promote hydrogen as a key player in the country's energy landscape. Discussions at the Hydrogen Technology North America Expo in Houston highlighted the potential for hydrogen to align with national priorities like nuclear energy and sustainable aviation fuel production. Stakeholders believe that a strategic rebranding of hydrogen could garner more government support and investment. The industry is exploring various methods of hydrogen production, including blue hydrogen from natural gas and e-fuels from combining hydrogen with carbon. The fate of the hydrogen production tax credit, particularly the 45V credit, hangs in the balance as the Senate works on the reconciliation bill. Despite potential cuts to clean energy tax credits, industry experts remain positive about the future of hydrogen projects if the credit is extended. The credit plays a vital role in incentivizing clean hydrogen production, which is typically more expensive than traditional methods. Challenges also persist in the form of policy shifts affecting wind, solar, and carbon capture projects essential for hydrogen production. The industry is advocating for a cohesive policy approach to ensure viability and growth. The potential rollback of environmental standards and funding cuts pose additional hurdles. However, stakeholders remain hopeful for a positive outcome and are actively engaging with legislators to secure support for the hydrogen sector. Looking ahead, the U.S. market for hydrogen projects could face setbacks without the extension of the 45V tax credit. The industry emphasizes the importance of this credit in establishing the U.S. as a global leader in hydrogen technology. Despite uncertainties, smaller-scale projects and research initiatives are expected to persist, highlighting ongoing commitment and innovation in the hydrogen sector.
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