Hydrogen's Power Play: What Comes After the Hype

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The article discusses the current state and future prospects of hydrogen as a key player in global decarbonization efforts. While over 4 million metric tons per year of low-carbon hydrogen capacity has been approved globally, the development remains uneven, with China and Europe leading in electrolysis capacity, while North America focuses on carbon capture-based hydrogen. Experts highlight that despite supportive policies, clean hydrogen remains uncompetitive in many markets, with challenges in project bankability and demand certainty hindering progress.

In the U.S., the hydrogen industry has faced setbacks due to regulatory uncertainties and delays in finalizing crucial guidance, leading to a cautious outlook among investors. The Department of Energy emphasizes the need to reduce production costs and expand infrastructure, aiming for significant growth in hydrogen production by 2030. However, skepticism persists regarding hydrogen's viability in the power sector, with developers facing economic constraints and a lack of committed offtakers. The article concludes that while hydrogen holds promise for applications like long-duration energy storage and grid flexibility, its future hinges on overcoming policy risks and establishing a stable demand base.