WASHINGTON – Today, Citizens for Responsible Energy Solutions (CRES) Forum published a report titled, “The Economic Impact of American Blue Hydrogen,” highlighting the enormous potential of blue hydrogen to drive job creation, boost American manufacturing and secure U.S. leadership in the global clean energy economy.
The report, conducted with assistance from FTI Consulting, finds that scaling blue hydrogen production in the United States could:
- Support 52,700 jobs annually during the construction of blue hydrogen plants (2025-2035) and 62,200 sustained jobs each year once operational.
- Generate $12.3 billion in output, $6.6 billion in GDP, $400 million in state and local tax revenues, and $1 billion in federal tax revenues per year during construction.
- Create $22.4 billion in output, $12.3 billion in GDP, $1 billion in state and local tax revenues, and $1.4 billion in federal tax revenues annually during operations.
“Strengthening American energy leadership while advancing economic and environmental goals requires an all-of-the-above approach to energy. One tool that presents an extraordinary opportunity to ensure we utilize our resources at home is blue hydrogen—an economic engine for states and localities,” said CRES Forum President Heather Reams. “Without consistent federal policy, the U.S. is at risk of lagging behind other countries that are investing aggressively in hydrogen. With smart, targeted policy solutions like the 45V clean hydrogen tax credit, we unlock private investment, create tens of thousands of good-paying jobs and ensure the United States maintains its competitive edge.”
The report emphasizes that blue hydrogen—a form of hydrogen produced from natural gas using carbon capture and storage (CCS)—represents a strategic opportunity to assert American dominance in the emerging global clean hydrogen market and identifies significant export potential for clean hydrogen-derived products like clean ammonia. It also highlights how blue hydrogen can play a vital role in decarbonizing critical U.S. industries such as fertilizer production, petroleum refining, steel manufacturing and long-haul transportation.
The report underscores the importance of federal policy support, including the 45V Clean Hydrogen Production Tax Credit, in leveling the playing field as foreign competitors like China, the European Union and Middle Eastern nations heavily subsidize their hydrogen sectors.
Click HERE to read the full report.