WASHINGTON — ICYMI, RealClearEnergy recently published an op-ed where Citizens for Responsible Energy Solutions (CRES) President Heather Reams and Rep. Don Bacon (R-Neb.) outline the importance of hydrogen as a key solution for American energy dominance.
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Since reassuming office, President Trump has moved swiftly to implement his Unleashing American Energy agenda, prioritizing energy abundance, infrastructure expansion and strengthened domestic supply chains. Personnel is policy, and the President’s appointments to lead on energy—including Doug Burgum and Chris Wright as secretaries of Interior and Energy, respectively—underscore the administration’s commitment to reasserting America’s leadership in energy production and technological innovation.
Ultimately, securing America’s position as the undisputed global energy leader will hinge on our ability to rapidly scale energy deployments. Energy demand is surging, driven by electrification, data centers and a resurgence of domestic manufacturing. To ensure a reliable, affordable energy supply, we must tap into the full potential of our abundant natural resources while advancing next-generation energy solutions like hydrogen.
The U.S. has key advantages that position it for a thriving hydrogen economy—an abundance of resources like natural gas, nuclear power, biogas and renewables to produce low-carbon hydrogen, a geology suitable for large-scale hydrogen storage, a skilled energy workforce with applicable skills, as well as a robust intellectual property framework and a vibrant research ecosystem.
Today, the U.S. produces 10 million metric tons (MMT) of hydrogen annually, with 95% derived from natural gas. This is primarily used as a feedstock for ammonia production, oil refining and synthesizing chemicals, but hydrogen can also be a powerful energy source. To put 10 MMT of hydrogen into perspective: if used only to generate electricity via fuel cells, it could potentially power around 18 million homes a year. The development of advanced, low-carbon hydrogen presents a major opportunity to expand its role in other sectors. Scaling up advanced hydrogen production can unlock our ability to efficiently power and decarbonize industry, fuel heavy-duty and commercial vehicles, and provide long-term energy storage.
Global hydrogen demand is expected to grow over the next decade, and countries are already developing trade routes to buy and sell it worldwide. According to the Hydrogen Council, 40 MMT of clean hydrogen and its derivatives could be transported by ships or long-distance pipelines annually by 2035. Of that 40 MMT, North America could be the largest producer and exporter at 14 MMT per year, representing a significant economic opportunity for American industry and workers. If we assume a value of $3/kg for clean hydrogen, the value of 40 MMT of traded volume would amount to $120 billion a year. If the U.S. seizes this opportunity, hydrogen could become a cornerstone of our nation’s energy trade, benefiting American workers, industries and communities, as well as our national security.
Existing federal policies have already contributed to the foundation of a thriving hydrogen industry, such as the Department of Energy’s Regional Hydrogen Hubs and the technology-neutral Section 45V Credit for the Production of Clean Hydrogen. Combined, these policies are reducing risks faced by entrepreneurs and investors in the development of innovative hydrogen projects throughout every region of the country.
While the upfront capital costs of expanding hydrogen capacity will be initially high, the long-term benefits will realize a significant return on investment. Since the launch of the hydrogen hubs program in 2021, over $44 billion in hydrogen investments have been announced nationwide, according to data from the Rhodium Group. Meanwhile McKinsey projects that a robust American hydrogen industry could create up to 700,000 jobs by 2030 and generate $140 billion in annual revenue by 2030.
The U.S. has taken critical steps to support hydrogen, but we are facing stiff competition. China is aggressively expanding its electrolyzer manufacturing and hydrogen charging infrastructure, backed by hefty subsidies. The Chinese government’s long-term hydrogen plan (2021-2035) aims to establish its preeminence in this critical technology, and the country already accounts for 65% of committed global electrolyzer capacity.
Maintaining U.S. policy support for advanced hydrogen will be critical to asserting America’s competitive edge in this emerging sector. To fully achieve an American energy expansion, we must focus on policies that encourage private-sector investment in innovative technologies, like advanced hydrogen, and remove barriers to building new energy infrastructure—such as much-needed permitting reforms—that the previous administration failed to address.
The Trump Administration is already working to streamline the federal permitting process, but sustaining targeted federal incentives for next-generation technologies will also be essential to solidify America’s leadership in the global energy economy. The alternative is ceding ground to adversarial competitors like China—an outcome that would weaken our energy security, slow economic growth and undermine American innovation.
Note: calculations of the energy potential of hydrogen are based on the gravimetric energy density of hydrogen (120 MJ/kg, equivalent to 33.3 kWh/kg) and average household energy use for the potential number of homes powered; and on a fuel economy of 60 mi/kg of hydrogen for the potential number of miles driven.
Rep. Don Bacon (R-Neb.) and Heather Reams, President, Citizens for Responsible Energy Solutions (CRES).
Read the full op-ed here.