Hydrogen beyond the hype: The green fuel's narrow but crucial role in a decarbonized economy
Enthusiasm for green hydrogen may have faded amid high costs and supply issues – but it will be needed in sectors that cannot be easily electrified.
Steve Capanna, policy director, and Owen Zinaman, senior advisor for Crux Alliance, note that just a few years ago, green hydrogen looked set to become a central pillar of the global energy transition.
- Governments across the world rolled out sweeping hydrogen strategies
- Companies pitched billion-dollar projects to use clean hydrogen throughout the economy
However, the realities of green hydrogen costs, exacerbated by high interest rates and supply chain constraints, have undermined these plans.
The US – which had among the most ambitious suites of hydrogen policies under the Biden Administration – has reversed course, scaling back its clean hydrogen production incentive, freezing funds for green hydrogen hubs, and cutting the vast majority of federal hydrogen research and development funding.
Author's summary: Green hydrogen's role is crucial in a decarbonized economy.