Is it possible that the most plentiful element in the universe could possibly hold the key to a carbon-free energy future in America? At NextEra Energy, they believe that the answer is an affirmative yes – green hydrogen can be created from renewable energy.
Such a plan would not only help in the American renewable energy initiative, but also change efforts to “decarbonize hard-to-abate industries such as the power sector, transportation, and heavy industry.”
Hydrogen made with renewable energy instead of with fossil fuels is the definition of green hydrogen. “It is versatile, easy to store and emits no greenhouse gases, making it well suited for industrial processes, buildings, power, transportation, and other heavy industries that have been either too technically challenging or cost-prohibitive amounts to decarbonize in the past.”
Already there is bipartisan support for the green hydrogen policies. There are already public policy suggestions that help to push forward the green hydrogen investment. There’s already a call from the Biden administration for a power sector that is free of carbon pollution by 2035 as well as a ”net zero emissions economy by 2050.”
The Department of Energy’s new “Hydrogen Shot” program is looking for $400 million for several different hydrogen-related efforts that will be able to drive the costs of “clean hydrogen down from about $5 per kilogram today to $1 per kilogram by 2030.”
Investing $100 million over the next five years for research of hydrogen and fuel cells is the plan that DOE is announcing. The investment of $430 billion by 2030 is the plan for the European Union to scale green hydrogen.
Just as other policies have assisted solar and wind technologies, it is thought that it is essential to have federal incentives. For example, having a production tax credit would help increase the market and would assist in the U.S. climate goals.
The solar power investment and wind power production tax credit have already “created a $55 billion domestic solar and wind power market, produced 0.4 million jobs and account for over 10 percent of power generation.”