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Most hydrogen today is made from steam methane refor- reduce US carbon emissions 40% by 2030. The Energy Earth- mation (SMR), sometimes called “grey hydrogen.” This is shots™ initiatives were launched in 2021 by the DOE to ac- currently the lowest-cost means of producing hydrogen, but celerate breakthroughs in clean energy within a decade. Two it also generates a signi? cant amount of carbon dioxide. For of these, the Hydrogen Shot and the Clean Fuels & Products additional cost, it is possible to add carbon capture and stor- Shot are signi? cant for the maritime industry’s need for green- age (CCS) downstream of the SMR process. Hydrogen made er fuels. The former seeks to lower the cost of clean hydrogen from SMR combined with CCS is known as “blue hydrogen.” by 80% in ten years, to one dollar per kilogram. The latter’s
Electrolysis powered by renewable electricity, such as solar goal is to decarbonize the fuel and chemical industries and or wind, can be used to separate oxygen and hydrogen from advance cost-effective technologies with a minimum of 85% water. The hydrogen produced by this process is called “green lower GHG emissions by 2035.
hydrogen.” The industry uses these colors because differenti- The Bipartisan Infrastructure Law (BIL) has funded seven ating the various production pathways is essential to under- regional clean hydrogen hubs (H2Hubs), managed by the standing the carbon intensity of hydrogen as a fuel or a feed- DOE’s of? ce of clean energy demonstrations. The H2Hubs stock. It is clear that a lot of green hydrogen will be needed for will invest in both blue and green hydrogen as part of the the energy transition, but today the cost is many times higher US plan to jump-start the clean hydrogen industry. These are than grey hydrogen. This is a challenge that the US Govern- a key piece of the national clean hydrogen strategy and are ment is attempting to address. aligned with the Hydrogen Interagency Task Force which is
The In? ation Reduction Act (IRA) is the largest investment coordinating the government’s holistic approach to develop- in reducing carbon pollution in US history and is expected to ing green hydrogen.
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