Additional contributors: Chathurika Gamage, Kaitlyn Ramirez, Corey Stewart, Abby Martin, and Maeve Masterson.

Hydrogen is a strategic economic and energy opportunity to expand America’s industrial base, energy security, and global leadership. Despite good progress made in the past several years, the US hydrogen industry faces headwinds and slow scale up. The more its market lags, the more it risks falling behind other countries actively building markets and securing supply chains.

This report explores the conditions stalling US hydrogen market growth, including weak domestic demand caused by fragmented policies and challenged economics in many domestic offtake sectors. With case studies for hydrogen in exports, on-road mobility, aviation, steel, and maritime shipping, it highlights the early wins and remaining steps to accelerate market development.

Federal and state policy makers can put America on a path to unleash widespread hydrogen investments and solidify energy leadership by considering the following actions: retain current federal incentives, promote development of the exports market, increase demand-side policy incentives for hydrogen and its derivative commodities, and strengthen infrastructure policy supports.

This report was written with support from Breakthrough Energy. Views reflect those of the authors and not necessarily those of the supporting organization.