The Clean Hydrogen Energy Economy was a Dream, The Climate Bill Could Make it a Reality this Decade
The clean hydrogen energy economy was a dream, The climate bill could make it a reality this decade.
A tax credit tucked into Inflation Reduction Act could turbocharge the nascent clean hydrogen industry and turn it into a multitrillion-dollar business in the coming decades.
The tax credit will spur hydrogen producers to develop cleaner ways to synthesize hydrogen, which is used to make fertilizer and in other industrial processes. But it could also catalyze a whole new category of companies looking to use clean hydrogen as a replacement for fossil fuels in areas such as shipping, aviation, heavy industry, and as a way to store and transport energy.
Currently, 98 percent of hydrogen is made in a way that uses fossil fuels, according to the Center on Global Energy Policy at Columbia University.
Elina Teplinsky, a lawyer who serves as the spokesperson for the Nuclear Hydrogen Initiative, a group working to advance the development of the nuclear hydrogen industry, said:
“But all the current hydrogen producers are looking to produce clean hydrogen.”
The law will make it more economically feasible to use carbon capture and storage technology to reduce the carbon emissions from hydrogen creation. It will also open the door to a whole range of companies looking for cleaner ways to make hydrogen, and to use hydrogen as a replacement for fossil fuels in certain areas.