Analysis — September 01, 2021

The Future of Clean Hydrogen in the United States

Views from Industry, Market Innovators, and Investors

The Future of Clean Hydrogen in the United States: Views from Industry, Market Innovators, and Investors (September 2021) is the first report in the series “From kilograms to gigatons: Pathways for hydrogen market formation in the United States.” It aims to develop a comprehensive analysis of policy opportunities for further development in the United States of hydrogen, which is increasingly seen as a promising pathway for the economy-wide energy transition. Based on more than 70 interviews with leaders across the hydrogen value chain, this report details the current state of the hydrogen market in the United States.

“We have many, many companies engaging in hydrogen activities, and… that is getting a lot of attention nationally and globally,” said Energy Futures Initiative (EFI) CEO Ernest Moniz. “Understanding the early thinking of companies is extremely important.”

Jen DiStefano, project manager at EFI, explained that companies are exploring hydrogen opportunities beyond their own sectors, demonstrating growing interest in the market. Furthermore, DiStefano noted that regional hubs are a key area of focus for investors. “We found that establishing an emissions reduction or a decarbonization goal often set companies on the path to then explore hydrogen as a decarbonization tool and ultimately potentially participate in a clean hydrogen market,” DiStefano said.

The report outlined nineteen key findings that span production, transport, and end-uses of hydrogen, including the following:

There is interest in hydrogen from nearly every sector of the economy.
Many companies are repurposing existing assets to expedite the process and decrease cost.
Recent policy work, such as the infrastructure reconciliation bill, has sparked significant interest in hydrogen.

EFI released this report on September 22, 2021, at Climate Week NYC, where contributors to the study and the New York State Energy Research and Development Authority (NYSERDA) engaged with New York stakeholders in the hydrogen market.

EFI founder and CEO Ernest Moniz gave opening remarks on how the report provides a necessary assessment of the current state of the hydrogen market. He was followed by Stephen Comello, a contributing author and Director of the Energy Business Innovations focus area at Stanford University.