Hydrogen Production in the USA

By 2030, the USA plans to expand production capacity to at least 10 million tons of clean hydrogen per year. (Source: Adobe Stock/ PORNCHAI SODA)

The hydrogen economy is gaining momentum worldwide, but approaches differ significantly between countries. Unlike Europe, which clearly focuses on green hydrogen, the USA pursues a pragmatic, technology-open approach. Currently, blue hydrogen plays a more significant role there. However, green hydrogen is seen as a long-term goal with growing importance. While many small projects are emerging in Germany, the USA aims to become one of the leading players in the global hydrogen market primarily through large-scale projects such as the one by Air Products in Texas. In the following, you will learn about the challenges the USA must overcome in scaling hydrogen production, which technologies are being used, and how the country's hydrogen strategy looks.

Donald Trump has once again withdrawn from the Paris Climate Agreement. As a result, the USA – as during his first term – is again one of the few countries worldwide that is not part of this international climate pact. The goal of climate neutrality by 2050, which the USA had pursued under the Biden administration, has effectively become obsolete. Whether the country will continue to pursue this goal in the long term depends on future political developments.

Under the Biden administration, the USA declared the development of a domestic hydrogen industry a priority. Particular focus was placed on the production of "Clean Hydrogen" – hydrogen produced with minimal CO₂ emissions. While Germany aims for a heavily regulated and networked hydrogen economy, the USA relied on massive financial incentives. The USA deliberately emphasized technological openness: both green and blue hydrogen projects received government funding to quickly scale up the hydrogen economy. For the country, hydrogen was primarily considered a key element for decarbonizing sectors that are difficult to electrify.

Donald Trump is sceptical or even hostile towards green hydrogen. Following his return to the presidency, he has stopped funding programmes for green hydrogen.  (Source: Unsplash/Library of Congress)

Funding Programs and Investments

The Inflation Reduction Act (IRA), passed in 2022, provided extensive funding for the hydrogen economy. The "45V" tax credit offered up to $3 per kilogram for the production of clean hydrogen, depending on the CO₂ footprint of the manufacturing process.

However, President Trump has severely restricted the implementation of the IRA since January 2025. By Executive Order on January 20, 2025, he directed all federal agencies to immediately stop disbursing IRA funds and to review ongoing programs. As a result, many funding programs, grants, and tax incentives were temporarily frozen or delayed.

Although there have been court orders partially lifting this blockade, many recipients continue to report problems accessing the funds. There is also a bill in Congress that would completely repeal the IRA and reclaim all unpaid funds.

Additionally, the Department of Energy (DOE) had provided about $7 billion for the development of seven regional hydrogen hubs as part of the "Regional Clean Hydrogen Hubs Initiative." These hubs are distributed across the entire country and are intended to demonstrate various production methods and applications:

Appalachian Hydrogen Hub (West Virginia, Ohio, Pennsylvania)

California Hydrogen Hub

Gulf Coast Hydrogen Hub (Texas)

Heartland Hydrogen Hub (Minnesota, North Dakota, South Dakota)

Mid-Atlantic Hydrogen Hub (Pennsylvania, Delaware, New Jersey)

Midwest Hydrogen Hub (Illinois, Indiana, Michigan)

Pacific Northwest Hydrogen Hub (Washington, Oregon, Montana)

Valve World Americas Expo & Conference

Hydrogen production and distribution require high-quality, specialized fittings and valve technology for safe and efficient operation. The Valve World Americas Expo & Conference in Houston, Texas, provides a central platform for manufacturers, users, and experts in this field. On June 4 and 5, 2025, at the George R. Brown Convention Center in Houston, the trade show will present innovative solutions for the special requirements of the hydrogen industry. Over 255 exhibitors will showcase hydrogen-resistant materials, high-pressure fittings for transport lines, and special valves for electrolyzers.

Air Products has pledged to invest at least $15 billion in clean hydrogen projects worldwide by 2027, with a significant portion of that investment in the US. (Source: Air Products)

Air Products Projects

In addition to the Gulf Coast Hydrogen Hub, one of the most significant standalone hydrogen projects in the USA is also planned to be developed in Texas. This is the facility planned by Air Products in Wilbarger County. The major project, which is scheduled to be operational by 2027/2028, includes:

An investment of over $4.5 billion

A planned production capacity of over 200,000 tons of green hydrogen per year

The integration of approximately 1.4 GW of renewable electricity from wind and solar energy

The geographical location in Texas offers several advantages: access to abundant renewable energy sources, an existing natural gas infrastructure that can be repurposed for hydrogen transport, and proximity to potential industrial customers along the Gulf Coast.

In addition to the hydrogen project in Wilbarger County, Air Products had also planned one of the world's largest blue hydrogen projects in Texas. The Louisiana Clean Energy Complex was to be built near Houston. Starting in 2026, the facility was supposed to produce over 750 million standard cubic feet of hydrogen daily from natural gas with carbon capture (CCS), complemented by ammonia production for export. The CO₂ produced during production was to be stored in the Gulf of Mexico. In May 2025, however, the company reported that the project is being put on hold. Components for CO₂ capture and ammonia production are to be sold, possibly due to high costs or a stronger market orientation toward green hydrogen.

The complex should produce more than 750 million standard cubic feet per day of blue hydrogen for Air Products’ pipeline customers along the Gulf Coast and blue ammonia for global hydrogen markets, including transportation and mobility. (Source: Air Products)

Critical Points

In the USA, there is criticism that the dependence on tax credits involves political uncertainties, such as the possible weakening of the IRA after changes in government. Additionally, blue hydrogen projects could prolong dependence on fossil fuels. In Germany, slow approval processes and unclear certifications hinder implementation. Both countries struggle with high initial investments and the need to make hydrogen economically competitive.

Despite the positive developments, there are points of criticism regarding the US hydrogen strategy:

The strong promotion of blue hydrogen is criticized by environmentalists because it is not completely emission-free

The efficiency of hydrogen compared to direct electrification is questioned in some sectors

High production and infrastructure costs remain a challenge

According to DOE forecasts, hydrogen demand in the USA could rise to 20-40 million tons per year by 2050, compared to around 10 million tons today.

By 2030, the USA plans to expand production capacity to at least 10 million tons of clean hydrogen per year. A significant portion of this is expected to come from the seven regional hubs, which are intended to serve as catalysts for further development.