The Inflation Reduction Act has upended hydrogen economics, making “green” hydrogen — electrolyzed from renewable electricity and water — suddenly cost-competitive with its natural gas-derived counterpart.
On the supply side, electrolyzers can help utilities integrate renewables into the grid, speeding the clean electricity transition. On the demand side, electrolysis can cost-effectively decarbonize hydrogen production.
But the new hydrogen economics mean regulators and policymakers must be even more careful to avoid directing the fuel to counterproductive applications like heating buildings.
