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Are US Incentives for Green Hydrogen Driving the Economy?

The US' clean hydrogen economy is supported by a generous subsidy regime that has set the stage for the growth of the sector. It can be broken down into two parts: The first is the Infrastructure Investment and Jobs Act (IIJA) passed in late 2021, which will distribute up to $8 billion to develop six to 10 regional clean hydrogen hubs. Then came the Inflation Reduction Act (IRA), which will provide hydrogen producers between $0.6/kg and $3/kg in tax credits depending on the hydrogen's carbon intensity levels.

With strong government support accelerating the growth of green hydrogen infrastructure, as well as electrolyser technology and manufacturing capacity, the portion of projects reaching construction phases will increasingly becoming more achievable for developers looking to deploy clean hydrogen at scale. Some examples of green hydrogen projects in construction phases and expected to start operation by the end of the year are include:

Sauk Valley, Illinois

This is the first green hydrogen project operated by Invenergy in Illinois. The project will generate green hydrogen by utilising power from Invenergy's co-located solar plant and Ohmium International’s low-carbon electrolyser technology.

Starting operations in 2023, the plant will have a capacity of 52 tonnes per year and will be able to store 400kg of hydrogen on site. The facility will be equipped with Ohmium's PEM electrolyser, which produces 6kg of hydrogen per hour.

Casa Grande, Arizona

The Casa Grande project located in Arizona will be owned and operated by Air Products, producing 10 metric tons per day. The facility is expected to be on-stream in 2023, and its product will be sold to the hydrogen for mobility market in California and other locations. The plant will use two ThyssenKrupp Nucera electrolysers to produce gaseous hydrogen, which will be converted to liquid hydrogen using Air Products’ proprietary technology. The site will also include a terminal for distributing product to customer locations.

St. Gabriel, Louisiana

With a capacity of 15 tonnes per day, the St. Gabriel green hydrogen project will start its operations in 2023 to supply the fuel cell market. Plug Power Inc and Olin Corporation launched a joint venture called Hidrogenii. Olin will produce hydrogen and provide operational support, while Plug Power will be responsible for marketing the hydrogen and providing logistical support. By 2025, Plug expects to produce 500 tons of liquid green hydrogen per day. By 2028, the company predicts to produce 1,000 tons per day of liquid green hydrogen.

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