While the development of a hydrogen production industry is in its early stages, Western policymakers have been laying the groundwork for attracting the industry to their states and incorporating hydrogen into their energy portfolios. Colorado, New Mexico, Utah, and Wyoming have all taken steps in recent years to pave the way for hydrogen development.
Meanwhile, the Biden administration has made significant investments in hydrogen production using funds from the Bipartisan Infrastructure Law signed into law in November 2021. In October 2023, the Department of Energy announced an investment of $7 billion to develop seven Regional Clean Hydrogen Hubs, including one in the Pacific Northwest and one in California.
Despite the potential benefits of hydrogen in certain applications, it’s not without drawbacks, as Center for Western Priorities Policy Director Rachael Hamby outlines in a new Westwise blog post. Hydrogen production requires significant inputs of energy and water and is currently very expensive. And not all hydrogen is created equal when it comes to carbon emissions and other environmental impacts. All of these concerns make hydrogen similar to carbon capture; it has a limited role to play in the energy transition, but it is not the solution to climate change on its own.
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