Hydrogen Can Help Administration Meet Energy Dominance Goals

During his keynote address at CERAWeek, Secretary of Energy Chris Wright spoke to the necessity of common-sense energy policy that prioritizes economic growth, energy security, and affordability for consumers. “Our focus will be steadfast on the American people and our allies abroad,” he said. “We need more energy. Lots more energy. That much should be obvious.”

What may be less obvious to our policy leaders is how much hydrogen stands out as a solution that can – and should – play an essential role in advancing the second Trump Administration’s energy agenda.

Hydrogen expands the breadth and reach of the U.S. energy sector by leveraging a variety of domestic energy sources – from natural gas to nuclear power – and deploying technology that will scale resilient, reliable, affordable, and secure American energy.  A robust hydrogen industry complements our well-established leadership in LNG, with many parallels for new technology innovation and export potential to existing and new global markets.

That’s why over 110 trade associations and business groups—representing thousands of U.S. companies—along with three Hydrogen Hubs, recently urged congressional leaders to uphold policies essential for achieving hydrogen energy dominance. Key among these policies is the Section 45V Hydrogen Production Credit, which will be critical for keeping American industry competitive.

Hydrogen is a game-changer for our energy economy, with applications across manufacturing, fuels and fertilizer production, power generation, and energy storage. With a final guidance just issued for Section 45V in January, the U.S. hydrogen industry is now poised to invest billions of dollars in new projects, manufacturing facilities, and workforce development across the country. 

One recent industry report estimates that a strong domestic hydrogen market could generate 700,000 new American jobs and $140 billion in new business revenue by end of this decade. We are already seeing the impact of hydrogen investment – the U.S. Department of Energy’s (DOE) Hydrogen Hub program is driving the development of large-scale projects across industrial corridors nationwide, from the Gulf Coast and Midwest to Appalachia and the Pacific Northwest. Hydrogen’s versatility allows it to harness each region’s existing natural resources and energy infrastructure, creating a unique opportunity to establish new energy hubs and revitalize local economies.

As energy demand continues to rise, hydrogen offers a pathway to greater energy independence by leveraging American resources like natural gas, biogas, nuclear, and renewable electricity. Increased hydrogen production will strengthen the reliability of our existing energy infrastructure, while also enhancing grid resilience and creating the energy needed to power our data centers and other industrial facilities.

Expanding and growing the U.S. hydrogen market also provides a pivotal opportunity to strengthen our geopolitical relationships through balanced energy trade. If we fail to act now, global competitors will seize the opportunity and fill the void. Countries around the world are making aggressive investments in hydrogen, recognizing its potential to advance energy systems and enhance energy security.

The number of hydrogen projects reaching final investment decisions have increased sevenfold in the last few years, representing $75 billion as of 2024. China, in particular, has prioritized hydrogen development, now controlling over 60% of the global manufacturing capacity for hydrogen production technology—up from less than 10% just five years ago. If we don’t act decisively now, we risk losing these massive jobs and growth opportunities to economic competitors abroad.

Having finally received regulatory clarity through Section 45V guidance, the U.S. hydrogen industry is ready to move forward with major domestic investments. As Congress considers historic tax and budget legislation in 2025, it is essential that this certainty is maintained so that these companies can build, employ, support local economies, and strengthen American energy and manufacturing across the country.

Frank Wolak is the President of the Fuel Cell & Hydrogen Energy Association.