US goal to slash hydrogen costs seen as crucial to global climate fight, positive for economy

A US initiative to drive down the cost of clean hydrogen to $1/kg within a decade would not only help accelerate the global transition to net-zero emissions needed to avert catastrophic consequences of climate change, but would also provide enormous domestic economic benefits, US Special Presidential Envoy for Climate John Kerry said Aug. 31.

"China wants to dominate this market, just as they've leaped out to a lead on a range of other clean energy technologies," Kerry said. "And that's why the 'Hydrogen Shot' and every 'Earthshot' is so critical for us to build our own competitiveness in the race for the global clean energy market."

Kerry's remarks refer to the Department of Energy's Energy Earthshots series of initiatives aimed at driving major breakthroughs needed to dramatically lower the costs of next-generation clean energy technologies and scale their deployment. The first such initiative was announced in June and targets reducing the cost of clean hydrogen by 80% within the decade.

Hydrogen is slated to become a multitrillion-dollar global market in the coming decades, and estimates suggest the sector could create 700,000 jobs in the US by 2030, Kerry said at DOE's first-ever Hydrogen Shot Summit, which virtually brought together top leaders in the field to map out strategies for achieving DOE's ambitious goal.

Beyond the economic benefits to the US, Kerry stressed the role clean hydrogen could play in easing decarbonization efforts around the world.

"Hydrogen offers a way to bridge the gap between the clean energy technologies we have today, such as wind, solar, nuclear, hydro, and geothermal power, and ... a vast set of end uses of energy that aren't yet hooked up to the power grid," Kerry said. For that reason, "I can't name a country that hasn't expressed excitement about hydrogen. From Saudi Arabia to India to Germany to Japan, we're setting up hydrogen partnerships around the world to advance this critical technology that every country understands has the opportunity to play a vital role in the clean energy transition."

'Stumbling block'

But the current high cost of clean hydrogen remains a major stumbling block for countries, despite their interest in the technology.

"That's where the Hydrogen Shot comes in," Kerry said. "By marshalling American innovation to drive down the cost of clean hydrogen to just $1/kg by 2030, we can make clean hydrogen an affordable alternative to fossil fuels around the world."

Such action will be key to keeping alive the goal of limiting rising temperatures to 1.5 degree C and warding off the worst impacts of climate change, Kerry said, as "more than 90% of all future emissions will come from outside our borders."

"That means that in addition to reducing emissions at home, our ability to tackle the climate crisis will require America to speed the global net-zero transition, and the most high-leverage way that we have to do that is through innovation, driving down the cost of critical clean technologies that can be scaled up and deployed around the world," he continued.

Kerry acknowledged that a great deal of progress has been made in reducing the cost of clean hydrogen. "But the fact is much more remains to be done in order to make it an affordable way to decarbonize the hardest to abate sectors of our economy, from heavy industry to long-distance trucking, shipping and aviation," he said.

Tenets of justice, equity

As that progress is being made, a DOE official reminded summit attendees that several key tenets of justice and equity must be kept in mind as priorities while making the Hydrogen Shot a reality.

"We know that, in the aggregate, the planet will be better off as a result of the deployment of this technology, but we also need to make sure that the places where this technology is housed are left better off," said Shalanda Baker, DOE's secretarial advisor on equity and deputy director for energy justice within the Office of Economic Impact and Diversity.

Procedural justice, she said, will entail making sure that everyone has a seat at the table, engaging communities and ensuring diversity within the new hydrogen market, while distributive justice involves actually creating wealth in affected communities.

"Meeting them where they are with respect to engaging around the development opportunity that this technology provides" will ensure recognition justice, Baker said. Restorative justice, which "is really about the healing potential of this technology," circles back to the idea of leaving "communities better off as a result of this deployment."