Op-Ed: In global hydrogen race, U.S. needs competitive policies

Hydrogen is the next frontier of energy production. Governments around the globe are implementing policies to attract investment and buildout the essential infrastructure to produce, distribute, and use hydrogen across every sector of the global economy.

In recent years, China has moved aggressively to become a global leader for the hydrogen industry. The Chinese Communist Party (CCP) approved new policies to boost its domestic low-carbon hydrogen sector and the nation accounts for over 60% of the global electrolyzer manufacturing capacity.

The United States has also positioned itself to capitalize on the hydrogen opportunity.

The federal government created the Regional Hydrogen Hub Program and the Section 45V Clean Hydrogen Production Tax Credit to spur investment and development. Combined, these two policies aimed to be the U.S.’s down payment to expand its status as the preeminent global energy leader by paying the entry price to compete for clean hydrogen investment. And at this stage of the nascent industry’s development, immense economic and environmental benefits can be gained by investing now.

For Texas, embracing hydrogen has been a no-brainer, and the technology could soon emerge as a catalyst for the state’s next big energy boom. Texas already leads the country in energy production – gas and renewables – and has the infrastructure and expertise to be a global hub for hydrogen. The Gulf Coast not only contains more than 1,600 miles of hydrogen pipelines but also the deep engineering talent needed to construct and maintain hydrogen facilities.

- Advertisement -

Texas currently contains 33% of U.S. hydrogen production capacity, and companies have made billions in commitments to build more. In fact, Texas holds nearly half of America’s largest hydrogen projects – those exceeding $1 billion in investments.

This potential to dominate the global hydrogen market is why the Department of Energy (DOE) selected Texas’s HyVelocity Hydrogen Hub along the Gulf Coast to advance domestic hydrogen production. The hub is part of a collaboration with some of the largest energy producers in the world, including Chevron and ExxonMobil, and is projected to contribute over 45,000 new jobs, along with $100 billion to the state’s gross domestic product.

With economic benefits like that, it’s no surprise there is momentum building across the U.S.

However, policy uncertainty – particularly surrounding the hydrogen production tax credit – risks losing our competitive edge to China, Europe, and the Middle East that are accelerating their own hydrogen development.

If Congress were to put 45V on the chopping block, Texas would risk losing out on billions of dollars. One study from the University of Texas found that a hydrogen-rich Texas economy could create more than 750,000 new jobs and have an average net economic benefit of $122 billion by 2050.​

Policies like 45V provide American businesses with the certainty they need to do what they do best: invest and build. This technology-neutral tax credit isn’t about picking winners or losers. It’s about ensuring that American companies, especially those already investing in Texas, can compete on the global stage.

- Advertisement -

However, there are positive signs that Congress will maintain and support important policies like 45V. Twenty-one Republican representatives and four senators are defending energy tax credits as Congress debates the budget reconciliation bill. We need these leaders to stand firm in that commitment.

Hydrogen is the next frontier, and Texas has the resources, expertise, and infrastructure to lead the way. Congress needs to maintain a common-sense, all-of-the-above approach to our country’s energy future, and preserve policies like the hydrogen production tax credit.

spot_img
spot_img

Hot this week

African and Caribbean Nations Call for Reparations for Slave Trade, Propose Global Fund

Nations across Africa and the Caribbean, deeply impacted by...

Sports betting expert offers advice on paying taxes for gambling winnings

(The Center Square) – Tax season is underway, and...

Health care company agrees to pay $22.5 million to settle claims of over billing

A health care company agreed to pay nearly $22.5...

Entertainment district benefits don’t outweigh the cost, economists say

(The Center Square) — Weeks later, after more details...

Business association ‘disappointed’ by WA L&I’s proposed workers comp rate hike

(The Center Square) – The Association of Washington Business...

Everyday Economics: Brace yourself for higher market volatility this week

This week’s data will offer fresh clues on the...

Trouble Sleeping? This Science-Backed App Could Change Your Life

Sleep quality is a huge determinant of our health,...

Op-Ed: Hispanic families in New Mexico push back on gender policies

In a state where more than 1 million residents...

Senate committee to vote on bills combating antisemitism on campuses

Legislation targeting harassment of Jewish students at higher education...

The FDA Is Failing – Here’s What Needs To Change

We’ve long trusted the FDA to protect public health,...

Illinois bill helps homeowners fight back against squatters

(The Center Square) – With instances of squatting sharply...

Voters focused on prices, tariffs as Trump wraps up first 100 days

American voters are focused on prices, tariffs and illegal...

WATCH: Trump, Rubio say Russia-Ukraine war is ‘endable’

President Donald Trump and Secretary of State Marco Rubio...

More like this
Related

Everyday Economics: Brace yourself for higher market volatility this week

This week’s data will offer fresh clues on the...

Trouble Sleeping? This Science-Backed App Could Change Your Life

Sleep quality is a huge determinant of our health,...

Op-Ed: Hispanic families in New Mexico push back on gender policies

In a state where more than 1 million residents...

Senate committee to vote on bills combating antisemitism on campuses

Legislation targeting harassment of Jewish students at higher education...