“We must shift our focus away from discussing green, blue and turquoise hydrogen (H₂) and instead concentrate on the full greenhouse gas (GHG) emissions lifecycle of hydrogen production. In the United States, the technology-neutral approach to hydrogen yields more fruit than the approach used in Europe”, writes Hycamite TCD Matti Malkamäki in his latest article on LinkedIn.
Despite some positive steps lately, according to Malkamäki, the European Union is advancing too slowly. As long as the regulatory framework remains unclear, investors must continue to wait.
Meanwhile, US investors are already beginning to pour their money into new hydrogen and other green technology that will help to cut emissions. The Inflation Reduction Act (IRA) caused a surge of investment in hydrogen because it is generous, technology-neutral and, foremost, very clear.
Among other funds, the IRA allocates USD 370 billion (approximately EUR 357 billion) to provide credit subsidies for direct loans and loan guarantees for climate protection and energy security.
Since the beginning of the Russian invasion of Ukraine, the cost of hydrogen produced with traditional steam-methane reforming (SMR) technology has become equal to that of clean hydrogen, at around USD 5/kg (EUR 4.8/kg) in Europe.
The US move has driven the cost of new zero-emission hydrogen products below USD 2/kg. Emission-free hydrogen has become too cheap to ignore in America.
