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U.S. Department of Energy Releases Updated Report on Clean Hydrogen Growth

The U.S. Department of Energy (DOE) has released an updated version of Pathways to Commercial Liftoff: Clean Hydrogen, highlighting significant progress and challenges in the sector. Over the past year, announced clean hydrogen production capacity has grown by 26%, reaching 140 lakh metric tons per annum (MMTpa).

Investments have nearly doubled, reducing the capital gap needed for widespread commercialization to Rs2,700-13,500 crore. However, project advancements remain slow due to rising production costs, regulatory uncertainty around the Inflation Reduction Act’s 45V tax credit, and a lack of firm offtake agreements.

Despite this, the U.S. is on track to achieve 7-9 MMTpa in operational capacity by 2030. Cost estimates for electrolytic hydrogen have risen to Rs450-630 per kg, while low-carbon reformation-based hydrogen now costs Rs180 per kg due to increased installation and electricity expenses.