Hydrogen Subsidies, Contracts in Spotlight as US Weighs Demand

US energy officials must craft incentives that cover steep upfront costs and leverage government buying power to scale up adoption of hydrogen in the power sector, ammonia production, heavy trucking, and other hard-to-decarbonize areas, industry leaders say.

That input came as feedback to the Energy Department’s $1 billion program for demand-side mechanisms announced in a notice of intent this month.

The policies being crafted are crucial to link supply and demand in a nascent industry, the agency said, as they will create certainty for the first wave of hydrogen producers that there will be customers ...