2025 hydrogen report
Throughout 2023, the US Department of Energy (DOE) launched major funding initiatives to foster research, development, and deployment of clean hydrogen technologies. Significant investments were made to lower the cost of clean hydrogen, targeting DOE’s Hydrogen Shot goal of achieving $1 per kilo within ten years.
This government support was instrumental in pushing forward the hydrogen economy in the US. The period reflected a dynamic phase of growth and innovation in the US hydrogen industry, propelled by government backing and industrial progress. At the time, the US saw notable advances and investments in hydrogen infrastructure and technology.
However, despite this support, clean energy investments have not quite delivered as hoped in terms of costs coming down. And throughout 2024 and into 2025, there has been a broader trend within the industry of reassessing low-earning clean energy investments, especially considering potential policy shifts and market uncertainties under the new administration. This has since led to some announced clean hydrogen projects being paused or cancelled, and there is still the risk of government withdrawing its support more widely.
That’s because the second Trump administration has made it clear that decarbonization is down the list of priorities for the US. It has paused further funding from the Inflation Reduction Act (IRA) and the Infrastructure Investment and Jobs Act (IIJA), which provided subsidies for clean technologies such as hydrogen and electric vehicles. Given this, industrial gas and energy companies have continued to reassess the broader impact of potential changes on their renewable projects, including potential suspensions of funds under the IRA.
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