Hydrogen's Potential for Emission Reduction Hinges on Sustainability

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Hydrogen's Potential for Emission Reduction Hinges on Sustainability
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While hydrogen offers a promising solution for decarbonizing industries like steel and cement, its effectiveness hinges on sourcing from renewable and sustainable origins. The Inflation Reduction Act's $100 billion in credits incentivizes green hydrogen production but also raises concerns about potential misuse.

The basic facts about hydrogen are well known. It has the ability to significantly reduce emissions from the steel and cement industries. As a power source, it creates no waste products other than water and heat. While the US struggles to find ways to reduce its carbon and methane emissions, hydrogen keeps coming up as one of the best ways to do that. But unless it is made from renewable and sustainable sources, it creates huge amounts of carbon emissions, making the cure worse than the disease.

. “We need clean hydrogen to fulfill our climate goals, but this will happen if and only if it’s truly clean and applied to highest value applications,” Dan Esposito, the author of the report, told. He detailed three policy principles to make that happen. ​“One is subsidizing truly clean hydrogen production. Two is investing in only high value uses. And three is reversing support for hydrogen’s low value uses.

It may take much longer than that for hydrogen markets to develop and for the cost of green hydrogen to become cost competitive with other fuels. Once they expire, what once looked like a cost effective alternative to electrifying building heating, industrial process heating, or transportation ​“looks like a much more expensive product,” Esposito said. Meanwhile, ​“you’ve made no progress toward getting to these high value uses.

That’s why environmentalists and even some in the energy industry have coalesced around a new requirement known as “additionality.” That provision would require hydrogen producers to not just use clean energy, butclean energy generation added to the grid. The administration says it is considering the provision carefully. “It’s a really important consideration, and it’s something that I know we’re weighing,” Energy Secretary Jennifer Granholm said of additionality in June of 2023.

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