Hydrogen Attracts Significant Investments to Support a Decarbonized Energy Economy

In late 2023, the U.S. Department of Energy (DOE) announced a $7 billion initiative to establish seven Regional Clean Hydrogen Hubs, aiming to scale the use of cost-effective clean hydrogen. This initiative comes as utilities face growing pressures from data centers and other industries that are demanding increasingly large amounts of reliable power. Hydrogen’s role in helping utilities meet these growing demands while adhering to net zero carbon goals makes it an essential part of the energy transition. With more companies pledging carbon neutrality, hydrogen provides a versatile tool for balancing increased demand with sustainability efforts.

Globally, the International Renewable Energy Agency (IRENA) projects that 5.5 TW of electrolyzer capacity will be required by 2050 to meet climate goals. While the timelines and strategies for integrating hydrogen into the energy economy vary, EPRI is focusing on understanding applications of hydrogen to aid in power sector decarbonization while maintaining reliability and affordability.