The Biden administration is investing in “clean hydrogen” as a climate solution for heavy industry, with plans for several “hydrogen hubs,” including two in Pennsylvania. But what happens if Donald Trump takes office again?
Hydrogen is a cornerstone of President Joe Biden’s strategy to reduce the U.S. carbon footprint. Donald Trump, however, has dismissed climate change as a “hoax” and criticized Biden’s climate policies, including the Inflation Reduction Act, as a “scam.”
Why pursue hydrogen?
Hydrogen offers a way to support American industries while reducing carbon emissions, as it emits no carbon dioxide when used for electricity or burned. However, producing hydrogen without emitting CO2 is challenging.
Last year, Biden announced a $7 billion investment in seven hydrogen hubs nationwide, aimed at generating billions in private investment.
Climate experts say fossil fuels are largely responsible for global warming, causing extreme weather events. The earth saw record temperatures for 15 consecutive months until September, and this year could be the hottest on record, as per the National Oceanic and Atmospheric Administration.
Most hydrogen is currently produced using fossil fuels, creating significant carbon emissions. The planned hydrogen hubs aim to produce clean hydrogen through zero-carbon electricity, nuclear energy, or natural gas combined with carbon capture technologies.
Hydrogen can reduce the carbon footprint for heavy industries such as steel, cement, and aviation where fossil fuels are hard to replace.
Shawn Bennett of Battelle, leading the ARCH2 project, believes hydrogen’s benefits are bipartisan. “Hydrogen plays a crucial role in driving energy independence, creating jobs, and reducing emissions,” Bennett stated.
Tax incentives for clean hydrogen
The Inflation Reduction Act includes tax incentives for companies investing in clean hydrogen. These credits could be worth $34 billion over the next decade.
Donald Trump plans to retract unspent IRA funds, labeling them as a “Green New Deal” scam. Even if Republicans gain control, repealing the law won’t be simple, says Ann Carlson, UCLA law professor. Republican districts have benefited from IRA projects, making full repeal challenging.
Potential extensions of the 2017 Trump tax cuts, adding over $4 trillion to the deficit, could prompt Congress to cut green energy subsidies, Heather Hawkins of KPMG noted.
A Trump-friendly hydrogen ally: Oil and gas
Renewable energy tax credits might be at risk, but the oil and gas industry has vested interests in hydrogen tax credits. Major oil firms, contributing $20 million to Trump’s campaign, see hydrogen as a nonpartisan priority.
The American Petroleum Institute advocates for using abundant natural gas resources for hydrogen production, emphasizing bipartisan cooperation.
Trump might amend hydrogen tax credits to favor fossil fuel-powered projects, potentially negating climate benefits. “If you start making hydrogen by using fossil fuels,” said Matt Lifson from NYU School of Law, “you might be better off just using fossil fuels directly.”
Support for this reporting came from the MIT Environmental Solutions Initiative’s Journalism Fellowship.
