It is worth noting that zero-carbon sources go on to account for over 40% of the worldwide energy generation capacity as per a BNEF analysis. A staggering 91% of the new capacity that happened to be added in 2023 came in from wind and solar as compared to just 6% that came from the fossil fuels, says the research.
Interestingly, the Power Transition Trends report from BNEF goes on to collect data from over 140 markets so as to track the energy trends seen across the world. China, without a shred of doubt, happens to be far ahead in terms of the rollout of renewable energy and is kind of consistent due to its fast-paced record of wind as well as solar development since the last 10 years. The report further said that the US, Brazil, Canada, and, of course, India happen to be the other four that went on to account for 60% of the renewable energy of the world.
It is worth noting that green hydrogen can indeed overcome barriers to clean energy development across the US. The country happened to rank second, just behind China, in terms of renewable energy investment in the first six months of 2025. However, there are some barriers that continue to hamper and make the pace slow, such as a subset of lawmakers who look all set to reverse the clock in terms of clean energy. Apart from the partisan politics as well as local objections, gaps when it comes to the electricity transformation network and also a bottleneck in terms of grid connections go on to slow down the renewable energy development. The green hydrogen industry, which is indeed emerging, tends to offer a solution in both scenarios.
Green hydrogen gets produced from renewable sources as against the conventional hydrogen that gets extracted from coal or natural gas. It is worth noting that most of the green hydrogen happens to be made by way of splitting water in the electrolyser which happens to make use of an electrical current in order to bring out oxygen and hydrogen from the water molecules. The usage of electricity that’s supplied by wind as well as solar farms so as to create green hydrogen happens to create a large-scale and also a long-term energy storage base.
The fact is that green hydrogen can very well be transported through trucks, rail, pipelines, or even ships rather than depending on the existing grid network so as to transport renewable electricity. There are electrolysis systems that can also run at night when there is an excess of power that’s available or even during the daytime when solar generation goes on to outscale its demand.
A fast-paced US hydrogen economy due to renewable energy
In spite of the barriers, the 2022 Inflation Reduction Rate Act, which happened to be put forth by Joe Biden, happens to be rightfully credited with putting forth a very powerful and robust new wave when it comes to renewable energy investment. However, it is not the only prominent new law that happens to stimulate the sector. The Bipartisan Infrastructure Law of 2021 also holds a major hydrogen provision that is sure to help.
Although passed a year before the IRA, the hydrogen aspect of the infrastructure law needs a very elaborate pre-execution period. The provision goes on to put aside $7 billion for a new program so as to put in place unique energy resources, infra strengths, as well as market opportunities throughout the different US regions.
There is some funding that’s reserved so as to support the production of hydrogen from natural gas with the help of carbon capture; however, the bulk of the effort happens to be focused on the sources of renewable energy in addition to the measure of the nuclear energy.
In the last fall, the US Department of Energy went on to select some seven regional hubs when it came to potential funding. There was a period of negotiations that paved the way for three of those hubs to progress towards the funding stage.
One is the Pacific Northwest Hydrogen Association, covering Oregon, Montana, as well as Washington – the three states having comparatively low population but ample space and very abundant resources that are linked to renewable energy including the likes of offshore wind. It is well to be noted that the group is looking to cut the electrolysis system cost, therefore making the technology more accessible to other producers and reducing price on the production of hydrogen.
The ultimate objective is to make sure that green hydrogen is supplied so as to fuel a low-emission and heavy-duty freight scenario for the whole of the west coast. In addition to this, there also happens to be a sister hub based in California which is the Alliance for Renewable Clean Hydrogen Energy Systems – ARCHES that looks to create hydrogen by way of biomass in addition to water electrolysis.
It plans to use the hydrogen it produces due to biomass with water electrolysis.
Natural gas is getting some support; however, diversification holds the key
The third hydrogen hub is the Appalachian Regional Clean Hydrogen Hub, or ARCH2. This group exclusively focuses on natural gas having carbon capture, thereby covering parts such as Ohio, Virginia, and West Pennsylvania. That kind of an approach may not fetch a good response in the long run if, in case other hubs go on to fulfill their promise of low-cost green hydrogen.
In sharp contrast to the ARCH2, the other 6 hubs go on to give out the fact that how varied renewable sources of energy can be called upon so as to support strong as well as a diversified domestic hydrogen vertical. Of the four hubs that remain, they are still negotiating their final terms, and none of them focus exclusively on natural gas.
Interestingly, just as the full effect when it comes to the Regional Clean Hydrogen Hubs program begins to take shape in the years to come, the IRA, as a matter of fact, happens to be also motivating the beginning of fresh financial tools that offer their support to the renewable energy and also energy storage projects. But these significant new policies should not be taken as a very normal element. In order to attain the maximum impact on decarbonization that’s rapid, one will need very consistent and strong support in the times to come from the political circles holding office, the Congress, lawmakers of the state, and, of course, the American citizens.