Political uncertainty threatens clean hydrogen in the U.S.

The U.S. clean hydrogen industry faces political uncertainty as the Treasury Department is set to establish rules for the tax credit, sparking debate over eligibility criteria and environmental consequences.

Share:

Gain full professional access to energynews.pro from 4.90€/month.
Designed for decision-makers, with no long-term commitment.

Over 30,000 articles published since 2021.
150 new market analyses every week to decode global energy trends.

Monthly Digital PRO PASS

Immediate Access
4.90€/month*

No commitment – cancel anytime, activation in 2 minutes.

*Special launch offer: 1st month at the indicated price, then 14.90 €/month, no long-term commitment.

Annual Digital PRO Pass

Full Annual Access
99€/year*

To access all of energynews.pro without any limits

*Introductory annual price for year one, automatically renewed at 149.00 €/year from the second year.

The hydrogen sector in the United States is currently facing political uncertainty that could have considerable financial consequences. Stakeholders then discuss the eligibility of producers for clean energy incentives. Treasury Department is fast approaching the deadline for tax credit guidelines.

Uncertainty surrounding eligibility for incentives:

Hydrogen industry players in the United States are expressing concern about the lack of clarity regarding eligibility criteria for clean energy incentives. This uncertainty has a dissuasive effect on the investments needed to develop the sector.

“If the industry doesn’t believe it can rely on what the Treasury says when it comes to investment, then everyone is going to keep waiting,” Grumet said.

The carbon footprint issue:

A major debate centers on the measurement of the carbon footprint associated with hydrogen production, which conditions access to federal subsidies. Stakeholders are striving to define precise and transparent rules in this respect.

The Biden administration must “take a stand. There is a cost to inaction,” said Jason Grumet, CEO of the American Clean Power Association, at a panel on federal hydrogen policy on July 31. “But they have to lay a solid foundation that people can rely on. These are 30-year investments in energy infrastructure; we’re not just making applications here.”

Balancing flexibility and political certainty:

The clean hydrogen industry is seeking a delicate balance between flexibility and political certainty. On the one hand, investors and industry players want stable guidelines for planning their long-term investments. On the other hand, they recognize the importance of adapting to technological advances and market changes.

The reason we’re confident in the industry’s ability to meet these requirements lies in looking at some historical precedents,” said Wilkins. “The 1990 Clean Air Act Amendments are the classic example where many industries said the sky was going to fall and the costs would be too high. The rules were put in place and, miraculously, industry, innovation and competition won the day and it’s one of the most successful environmental programs we have.”

Proposals to encourage environmentally-friendly industry :

To encourage sustainable growth in the hydrogen industry, proposals are emerging, including the creation of a “safe harbor” system with strict criteria for tax credits. The aim is to ensure high environmental standards while encouraging innovation and the development of environmentally-friendly technologies.

“Is the Treasury going to go down this road and potentially bring down all the projects that depended on it? That’s not a good outcome,” he told the panel. One option is a “safe haven” system with strict eligibility criteria for the tax credit, which can be extended as new hydrogen production routes develop, said Iyer.

From 2029, Verso Energy will supply hydrogen produced in Moselle to steel group SHS, supported by a cross-border pipeline and an industrial investment exceeding €100mn.
The success of SGN’s test on a gas pipeline converted to hydrogen confirms Terra Firma Energy’s technological choices, with sites already equipped to accommodate this type of energy investment.
Lhyfe has started supplying Essent with renewable green hydrogen under a multi-year contract, marking a major commercial debut in the Netherlands for the French producer.
The Dutch government grants major funding to RWE to develop an offshore wind-powered electrolysis facility, marking a key step in the OranjeWind project.
ScottishPower pauses its renewable hydrogen projects in the United Kingdom, despite receiving public subsidies, citing a lack of commercial viability under the HAR1 programme.
thyssenkrupp nucera has completed the purchase of key assets from Green Hydrogen Systems, strengthening its position in pressurised alkaline electrolysis for industrial hydrogen production.
GH2 Solar Ltd partners with AHES Ltd to build an electrolyzer plant in Gwalior, targeting 500 MW capacity by 2030 with $19mn government support.
A cooperation agreement, a bilateral carbon-credit mechanism and converging standards lay the ground for India→Japan hydrogen and ammonia flows, with volume targets, price-support schemes and first export projects scaling up.
Hydrogen offtake agreements are multiplying, with Germany and Japan leading, mobilizing producers and industrial buyers in a still nascent but already highly competitive market.
Vema Hydrogen mobilise des experts internationaux pour accélérer la mise sur le marché de son hydrogène minéral, alors que l’entreprise prévoit de forer ses premiers puits pilotes en Amérique du Nord d’ici la fin de l’année.
First Public Hydrogen Authority opens a request for proposals to transport gaseous and liquid hydrogen across California, with a deadline set for September 12.
US-based manufacturer Ohmium unveils a new generation of modular electrolysers integrating all production systems within a reduced footprint, aiming to lower installation and operating costs for green hydrogen.
ABO Energy and Hydropulse join forces to develop decentralised green hydrogen production units in Europe, with Spain and Finland as priority markets.
Next Hydrogen secures two separate loans, including one from its executives, to consolidate liquidity and continue operations while evaluating long-term financial solutions.
Metacon receives EUR 14.9 million from Motor Oil Hellas for the approved delivery of ten electrolysis units, marking the first stage of a strategic industrial project in Greece.
The European Union’s regulatory framework mandates green hydrogen integration in refineries, generating projected demand of 0.5 million tonnes by 2030.
Air Products transported over 50 tanker trucks to the Kennedy Space Center to fill the world’s largest liquid hydrogen tank, supporting NASA’s Artemis missions.
Driven by federal incentives, hydrogen hubs and industrial demand, the U.S. green hydrogen market shows a compound annual growth rate of 63.8% through 2032.
According to the Oxford Institute for Energy Studies, the adoption of low-carbon ammonia in maritime transport faces economic, regulatory, and safety barriers, despite growing international pressure to reduce emissions from the global fleet.
Despite declining revenues, Next Hydrogen maintains operational continuity in Q2 2025 through new private and institutional financing.

Log in to read this article

You'll also have access to a selection of our best content.