Bringing Together Public and Private Sectors to Advance Clean Hydrogen

At a Glance

• The Biden administration has stated that adoption of commercial-scale clean, or “green,” hydrogen is key to meeting the ambitious goals for decarbonization that White House has set.
• While the report is ambitious in its findings, it acknowledges roadblocks that the industry faces towards commercialization.

On June 6, the Biden administration revealed its National Clean Hydrogen Strategy and Roadmap, which aims to coordinate public and private sector activities to advance the development and deployment of the clean hydrogen value chain, with the ultimate goal of achieving commercial-scale hydrogen deployment. The administration has stated that adoption of commercial-scale clean, or “green,” hydrogen is key to meeting the ambitious goals for decarbonization that White House has set. Clean hydrogen proponents have looked to the product to specifically decarbonize energy intensive sectors, like industrial, chemical and heavy-duty transportation, such as air transport and large machinery.

The strategy builds on a draft version of the same report on the state of the industry and importance of clean hydrogen in decarbonizing the energy and transportation sectors, with the final released this week incorporating significant industry and stakeholder input.

While the report is ambitious in its findings, it also acknowledges roadblocks that the industry faces towards commercialization, including the lack of distribution infrastructure, the scalability of manufacturing and end use compliance costs across the value chain. Additionally, industry advocates have been concerned at how “clean” will be defined, with many large energy companies saying that “green” hydrogen production will take significantly longer to scale than “blue” hydrogen, which is generated through a process involving natural gas, producing hydrogen and carbon dioxide, with the carbon dioxide being captured in the process and stored underground. Given these concerns and uncertainties, the administration is looking for stakeholders who can offer solutions.

In the end, the administration and congress have dedicated more than $10 billion in funding to advance deployment through hydrogen hubs across the country as part of the Bipartisan Infrastructure Law. Additionally, the Inflation Reduction Act includes roughly $3 billion in the form of a production tax credit, but the administration has not released guidance on how it intends to implement that tax credit.

The energy, manufacturing and technology team at Faegre Drinker is dedicated to providing client service and government relations representation to the makers of the products essential to modern life. We are experienced in navigating complicated regulatory regimes and the political landscape on Capitol Hill. Our clients are fueling the advancement of the American economy through the production of the components of microchips; consumer goods; food products; traditional, renewable and nuclear energy; and domestic rare earth elements.