The US is betting hard on Hydrogen – that´s cool

The Hubs can be a game changer for cost and availabiltiy of H2

HAVING THE H2 INFRASTRUCTURE IN PLACE IS KEY FOR THE INDUSTRY FUTURE

The US is betting hard on hydrogen by investing USD 7bn in H2 infrastructure to build production capacity for internal consumption and exports.
The US is willing to subsidize this H2 additional capacity to break the chicken and egg situation of supply and demand tradeoff.  The creation of new 7 hubs will allow overall, to have large scale green H2 production. The projects include building up of tanks, pipelines, and other infrastructure to assure H2 continuous supply.
This approach helps the economic premise of economies of scale where the more you build the cheaper it becomes.
The main usages of Green H2  are not passenger cars but more for example to support steel, fertilizer  production and long-haul transportation systems. The Government proposed to develop seven regional hubs across the country.
The north Pacific hub will focus on Green H2 overall for cargo-handling equipment in ports with export capabilities. Today´s batteries technology is too heavy and charge too slowly to be efficient for electrification.
These additional investments will also help the demand for electrolyzers (use to produce H2) but today supply chain is disruptive with up to 3 years of delivery time. In any case these are good news to bring down the production’s prices due the scale impact.
The other hubs are less green as will use nuclear electricity to make the electrolysis (so called pink H2). Others will use the less desirable blue H2 made from fossil fuels which obviously not ideal. The latter will need carbon capture or reusing facilities.
The interesting part is also the financing sources which relies on the IRA (Inflation Reduction Act) the super funding US programme to revitalize the US economy including revamping of the infrastructure alongside with the bipartisan infrastructure law. The 10 year tax breaks is expected to low the Green H2 cost below the 1USD per kg which would be cheaper than the blue H2 production.

So congrats to the US government for the support… is really cool! 

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