Commercial, Sourcing Renewables  -  March 24, 2023

Pathways to Commercial Liftoff: Clean Hydrogen

Thanks to transformational policies and programs like the regional clean hydrogen hubs, tax incentives in the Inflation Reduction Act, and ongoing research and development, the U.S. Department of Energy's  "Pathways to Commercial Liftoff: Clean Hydrogen" shows that this technology is among the best poised to reach full-scale commercialization. 

However, the DOE indicates that, despite increased investor engagement and project announcements, infrastructure buildout, demand uncertainty, workforce development, and other challenges to at-scale adoption must be addressed for clean hydrogen to realize its full potential.  

Scaling the market will require continuing work on addressing demand-side challenges. For example, scaling midstream infrastructure will drastically lower the delivered cost of hydrogen outside of co-located production and offtake, improving the business case for projects and accelerating the uptake of clean hydrogen. Bolstering demand and unlocking long-term offtake will support the current proliferation of hydrogen production project announcements and help those production projects reach the final investment decision (FID).

Download this report to understand the three phases of commercial "liftoff" for clean hydrogen:

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