The Institute for Energy Economics and Financial Analysis (IEEFA) has sounded a cautionary note on the United States Department of Energy’s (DOE) pursuit of blue hydrogen, citing the high costs associated with hydrogen hubs and the challenging landscape of hydrogen fuel cell electric vehicles (FCEVs).
In its recently released “Bad News for Blue Hydrogen” report, the IEEFA points to the precarious position the DOE finds itself in, facing difficult questions regarding the viability of blue hydrogen development. The report suggests that the DOE is under pressure to invest in hydrogen projects based on unproven technologies and undemonstrated markets, risking significant financial implications.
The IEEFA report underscores concerns about the DOE potentially putting the cart before the horse by advancing hydrogen projects without clear evidence of their technological feasibility and market demand. The report suggests that the current trend in electric vehicle (EV) market growth could overshadow hydrogen projects, particularly in vehicular applications.
The report makes a compelling case against blue hydrogen derived from natural gas, emphasizing that it fails to meet federal definitions of clean hydrogen and may contribute to worsened greenhouse gas emissions. The IEEFA argues that relying on fossil fuels for hydrogen production contradicts climate strategies, urging a shift towards cleaner alternatives.
