Popular Option in the Race for Low-Carbon Energy
Violetka Dirlea is a Global Client Partner and Solutions Leader with Strategy Realized at EY-Parthenon. Contributor Mark Scherluebbe is a Power & Utilities Managing Director with Strategy Realized at EY-Parthenon.
On the one hand, hydrogen is the most abundant element available, and an energy carrier that emits only water and oxygen when burned, creating the potential for numerous energy applications. At the same time, it's significantly more expensive than traditional fossil fuels, is difficult to both store and transport, and would require a completely new infrastructure for everyday use by customers.
Hydrogen proponents received some good news last summer when the Biden Administration released its National Clean Hydrogen Strategy and Roadmap. One of the highlights of this plan is the creation of seven Regional Clean Hydrogen Hubs (H2Hubs) across the nation.
The H2Hubs are projected to collectively produce three million metric tons of hydrogen annually. Demand for hydrogen is expected to reach fourteen million metric tons by 2030, according to the report, "Road Map to a US Hydrogen Economy," from the Fuel Cell and Hydrogen Energy Association.