Blue Hydrogen is a New Engine for American Manufacturing and Economic Growth

WASHINGTON — ICYMI, the Washington Reporter recently published an op-ed where Citizens for Responsible Energy Solutions (CRES) President Heather Reams highlights how blue hydrogen supports the Trump Administration’s goals for American energy production.

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President Donald Trump recognizes that American energy production is a cornerstone of our nation’s strength and prosperity. With strong leadership in the administration, the nation is on track to reassert U.S. energy leadership on the global stage. To achieve energy dominance, we must use every tool available to us — including innovative technologies shaping the future of energy such as blue hydrogen.

“Blue hydrogen” refers to hydrogen produced from natural gas with carbon capture and storage. This innovative energy source represents a powerful opportunity to achieve American energy dominance. America is uniquely positioned to lead in this sector, thanks to abundant, low-cost natural gas and cutting-edge carbon capture technologies already in use.

With consistent federal policy support, through the continued availability of the 45V tax credit for hydrogen, the U.S. has the capability to quickly scale a world-class blue hydrogen industry and outpace global competitors.

But there’s even more to like about blue hydrogen. Aside from the national security potential, a new study from CRES Forum highlights its massive strategic economic plus — from job creation and economic growth to export opportunities. The study indicates that a robust blue hydrogen sector would strengthen U.S. manufacturing, reinforce our natural gas economy and help decarbonize high-impact sectors like ammonia production, steelmaking, petroleum refining and long-haul transportation.

Over the next decade, blue hydrogen investments could support nearly 53,000 jobs during construction and 62,000 jobs each year once projects are operational. This could create $22.4 billion in output, $12.3 billion in gross domestic product, $1 billion in state and local tax revenues and $1.4 billion in federal tax revenues annually during operations. And as global demand for low-carbon energy resources continues to rise, clean hydrogen and hydrogen-derived products like ammonia could become major American exports.

The economic benefits are just one reason to include blue hydrogen in America’s approach to energy dominance, but the global stakes are even higher. More than 60 countries launched national hydrogen strategies — double since 2022 — and many are racing to capture market share in this growing sector.

This includes China, which is aggressively expanding its electrolyzer and fuel cell vehicle manufacturing capacity, backed by heavy state subsidies. European and Middle Eastern countries are also pouring state-backed investments into hydrogen technologies. The evidence is clear: If the U.S. fails to act decisively, we risk missing the chance to shape and dominate this emerging global market.

The Trump administration understands the need to embrace all forms of energy, which can be seen in things like the Executive Order Establishing the National Energy Dominance Council. The good news is investments in blue hydrogen will be another tool in the toolbox.

I encourage the administration to utilize all sources available like the job creating 45V Clean Hydrogen Production Tax Credit, which is a federal incentive designed to bridge the cost gap in clean hydrogen production, unlock private investment and accelerate project deployment.

Incentives like 45V are essential to scaling new industries such as blue hydrogen. Without them, we risk ceding valuable ground to competitors that are pouring state money into developing their clean hydrogen sectors.

The United States has the chance to set the tone when it comes to blue hydrogen. Under President Trump’s leadership, the nation can and should capitalize on smart resources and policies to advance American interests at home and abroad.

With the right policy framework, blue hydrogen can fuel American innovation, strengthen our energy security and help power decades of economic growth.

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