The United States is accelerating the construction of a hydrogen economy. In their strategy ‘Road map to a US Hydrogen Economy. Reducing emissions and driving growth across the nation’, they make it clear that the US economy’s demand for hydrogen fuel in 2050 will be over 63 million tonnes. Meeting it already requires decisive action.
Recently, there has been much talk about the EU REPower plan, in which the European Commission has strengthened existing assumptions and accelerated action to move away from fossil fuel exploitation towards energy diversification and the production of green hydrogen, for which demand is expected to rise to more than 20 million tonnes per year, half of which is to be produced directly in the EU. Europe is not alone in setting ambitious targets for the production and use of hydrogen in the economy. The United States also sees huge energy potential in it and explicitly identifies it as key in the process of decarbonizing the American economy.
Hydrogen is the strategy of the United States to guarantee the reduction of emissions and strengthen the economy
The United States has been at the forefront of space exploration and technology for years. Interestingly, back in 1969, the Apollo 11 mission used hydrogen-powered fuel cells to provide electricity and water. Liquid hydrogen was also the rocket’s fuel. Thanks to the associated advances, today America is one of the leaders in fuel cells and hydrogen production, storage, and distribution technologies. The current goal of the US government and companies in the strategy is to strengthen the market and implement large-scale projects across the country.
The US energy system is evolving and raising concerns about reliability and resilience to fluctuations related to the global climate and geopolitical situation. The US is grappling with the need to decarbonize and conserve resources and aging infrastructure. Hydrogen is expected to overcome this barrier, thanks to its properties as an energy carrier and storage, especially in the long term. To develop the technology, the Department of Energy has provided annual funding ranging from USD 100 million to USD 280 million over the past decade. Funding is expected to continue in future years to implement planned hydrogen projects and initiatives.
They are intended to make it possible to reduce the coal content of the domestic energy mix while meeting up to approx. 14% of US final energy demand by 2050, equivalent to over 2,468 TWh. By 2030, the US hydrogen economy is projected to generate revenues of nearly USD 140 billion per year, providing up to 700,000 jobs across the value chain. By 2050, the value of revenues is expected to grow to USD 750 billion and guarantee more than 3.4 million jobs.
Four stages in the development of the US hydrogen market
Scenarios show that the potential for hydrogen demand in the United States could reach 17 million t by 2030 and as much as 63 million t in 2050, driven primarily by its use as a fuel in transportation, residential and commercial buildings, and as a feedstock in industrial processes such as ammonia and methanol production and refining.
The strategy sets out detailed actions to be taken up to and beyond 2030, broken down into four key stages of implementation: immediate next steps, early scaling, diversification, and broad roll-out.
Immediate steps (2020-2022)
The first step, to be implemented later this year, is the most extensive part of the entire roadmap and provides for:
1. the first dedicated production of hydrogen for mobility,
2. use of SMR with feedstock RNG and medium scale SMR/ATR + CCUS1,
3. construction of a medium-scale power plant with electrolyzer (10-50 MW),
4. development of gaseous and liquid hydrogen distribution,
5. introduction of equipment resistant to hydrogeneration,
6. development of second-generation FCEVs and construction of a network of refueling stations for light vehicles and buses,
7. the development of first-generation FCEVs and the construction of a refueling station network for heavy goods vehicles
8. development and operation of 30+ MW fuel cells
9. initial pilot projects for energy storage.
Early scaling-up (2023-2025)
In the second phase, activities will include:
1. operation of the first large-scale electrolyzers (50 MW+),
2. operation of the first large scale SMR/ATR + CCUS reactor,
3. development of pipeline systems for hydrogen distribution in industrial clusters
4. introduction of new brands and models of second-generation FCEVs and expansion of the hydrogen refueling station network.
Diversification (2026-2030)
The third stage is a key stage in terms of developing low-carbon methods of hydrogen production and distribution. It assumes:
1. development of electrolytic hydrogen production using dedicated renewable and nuclear sources,
2. the development of SMR/ATR + CCS2 to support the growing demand for hydrogen,
3. implementation of the first hydrogen pipelines connecting production facilities to demand centers,
4. to scale up production of hydrogen technologies and equipment.
Broad rollout (post-2031)
The final stage included in the strategy extends what has already been achieved and scales up the use of hydrogen in each of the economic areas mentioned. Among its objectives, it lists the expansion of hydrogen use in all sectors, enabling further cost reductions and efficiency improvements. To increase the competitiveness of production of hydrogen by electrolysis using RES and nuclear energy. To achieve hydrogen compatibility within the existing gas infrastructure, and to provide a diversity of FCEV models commonly used in America.
The goals set out in the strategy are extremely ambitious, especially as we look toward the end of the decade. However, achieving them would enable the US to become one of the leaders in the hydrogen economy worldwide.
