Mercedes Mullins
Hydrogen is a versatile energy carrier with a wide range of applications, from powering vehicles to enabling zero or near-zero emissions in industrial processes. In the United States, hydrogen is predominantly used for petroleum refining, which accounts for 68% of its consumption, followed by the nitrogenous fertilizer industry at 21%. With an annual production of approximately 10 million metric tons, the US has about 60 hydrogen-vehicle-fuelling stations, all located in California. Hydrogen fuel cells are also used for electricity generation, with around 210 operating electric power generators across 151 facilities, providing less than 1% of the country's electricity in 2022. While hydrogen has the potential to revolutionize energy systems, challenges related to cost, infrastructure, and energy losses must be addressed to fully realize its potential.
| Characteristics | Values |
|---|---|
| Hydrogen production in 2018 | 10 million metric tons |
| Percentage of merchant hydrogen sold by industrial gas companies | 40% |
| Source of hydrogen production | Two-thirds from steam methane reformer (SMR) process, one-third from other chemical processes, and a small amount from electrolysis of water |
| Average cost of hydrogen in 2018 | $6.82/MMBtu |
| Average cost of hydrogen for industries that manufacture electrical equipment, appliances, and components | $86.19/MMBtu |
| Total number of hydrogen-vehicle-fueling stations in the US | 60 |
| Location of hydrogen-vehicle-fueling stations in the US | California |
| Number of operating fuel cell electric power generators in the US as of March 2024 | 210 |
| Total nameplate electric generation capacity of fuel cell electric power generators | 384 megawatts (MW) |
| Number of fuel cells with the largest single-fuel capacity | 1 (located at Bridgeport Fuel Cell, LLC facility in Connecticut) |
| Nameplate capacity of the largest single-fuel cell | 17 MW |
| Number of fuel cells with 0.1 MW capacity each | 10 (located at the California Institute of Technology) |
| Percentage of total annual U.S. electricity generation from fuel cells in 2022 | Less than 1% |
| Hydrogen usage in industrial processes | Used for refining petroleum, treating metals, producing fertilizer and chemicals, and processing foods |
| Hydrogen usage in transportation | Used in more than 50,000 fuel cell forklifts, over 80 fuel cell buses, and more than 15,000 fuel cell vehicles |
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What You'll Learn
Hydrogen fuel cells for electricity generation
Hydrogen fuel cells are a clean energy source that can be used for electricity generation and powering vehicles. Hydrogen fuel cells produce electricity by combining hydrogen and oxygen atoms. The hydrogen reacts with oxygen across an electrochemical cell—similar to a battery—to produce electricity, water, and small amounts of heat.
As of the end of March 2024, the United States had about 210 operating fuel cell electric power generators at 151 facilities, with about 384 megawatts (MW) of total nameplate electric generation capacity. Most operating fuel cells use pipeline natural gas as their hydrogen source, but some fuel cell power plants use biogas from wastewater treatment or landfill gas. In 2022, fuel cells provided less than 1% of total annual U.S. electricity generation.
Hydrogen has the potential to facilitate the decarbonization of the electric power sector by storing energy produced with renewable energy for days or even weeks. Hydrogen could be produced with renewable resources when renewable energy production is high and could be stored to generate electricity when renewable resources are limited and electricity demand is high. This could be particularly useful for seasonal energy storage and long-haul transport, where other options are less mature or more costly.
However, the use of hydrogen fuel cells for electricity generation is currently limited by the high cost of fuel cells and the limited availability of hydrogen fueling stations. Hydrogen production is also energy-intensive and expensive, and most commercially produced hydrogen in the United States is derived from fossil fuels, which contributes to emissions. Electrolysis, a process that uses electricity to split water into hydrogen and oxygen, is a pathway to zero-carbon emissions but currently represents less than 5% of worldwide hydrogen production.
There is growing interest in electrolytic hydrogen production due to declining costs for solar PV and wind generation, and the potential for significant emissions reductions from clean hydrogen. Policies that support the development of hydrogen infrastructure and create sustainable markets for clean hydrogen are needed to drive cost reductions and stimulate commercial demand.
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Hydrogen as a rocket fuel
Hydrogen is a versatile element with applications in multiple sectors. In the United States, hydrogen is predominantly used by industries for petroleum refining, metal treatment, fertilizer production, and food processing. Hydrogen is also an important feedstock for chemical manufacturers.
However, one of its critical applications is as a rocket fuel. Hydrogen, in its liquid form, has been used as rocket fuel for many decades. The first significant attempt to operate a liquid hydrogen-fueled rocket was made in 1954 by NACA researchers, who successfully fired a 5,000-pound-thrust liquid hydrogen and liquid oxygen engine. This test proved the viability of hydrogen as a rocket propellant.
Liquid hydrogen has several advantages as a rocket fuel. Firstly, it has a low molecular weight, which means it can store a substantial amount of energy in a small volume. This characteristic is crucial in rocketry, where engineers must balance energy density with mass constraints. Additionally, liquid hydrogen has a higher specific impulse, which allows it to produce more thrust for an extended period, resulting in better fuel efficiency. The clean combustion of hydrogen, producing only water vapour, also reduces the environmental impact of space missions.
Hydrogen's role in rocketry has continued to evolve, with its use in both government and private industry launch systems and vehicles. Rockets such as the Atlas Centaur, Delta III and IV, H-IIA, and the European Ariane 5 and 6 all utilise liquid hydrogen fuel. NASA, a key player in hydrogen rocket technology, has also explored the benefits of hydrogen fuel cells in projects like Pathfinder and Helios, where an unmanned aircraft utilised a hydrogen fuel cell system.
While liquid hydrogen has its advantages, there are also challenges associated with its use. Liquid hydrogen requires cryogenic storage technology and special handling due to its extremely low temperatures. It has a lower boiling point than other fuels, making it more difficult to store and transport. Additionally, it is more expensive to produce and transport than some alternative fuels.
Despite these challenges, hydrogen remains a popular choice for rocket propulsion due to its efficiency, high specific impulse, and clean combustion. With ongoing advancements and research, hydrogen is likely to continue playing a significant role in aerospace applications.
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Hydrogen for industrial processes
Hydrogen is used in various industrial processes in the United States. The country produces approximately 10 million metric tons of hydrogen each year, with 40% of it being merchant hydrogen sold by industrial gas companies. The two primary methods for producing hydrogen are steam-methane reforming and electrolysis (splitting water with electricity). Steam-methane reforming, or SMR, is the most common method, with nearly all commercially produced hydrogen in the US being sourced from this process. The SMR process primarily uses natural gas as a feedstock and results in carbon dioxide emissions, which is a concern from a climate change perspective.
Within the industrial sector, petroleum refiners are the largest consumers of hydrogen, utilizing 68% of the country's total hydrogen production. Hydrogen is used by petroleum refineries to lower the sulfur content of fuels. The remaining 21% of hydrogen consumption is attributed to nitrogenous fertilizer industries, which use it for ammonia and derivative production. Additionally, biofuel producers utilize hydrogen to generate hydrotreated vegetable oil (HVO) for renewable diesel.
Hydrogen is also essential for treating metals, producing chemicals, and processing foods. It has the potential to facilitate the decarbonization of the electric power sector by storing energy produced through renewable sources for extended periods. Fuel cell power plants, for example, can generate electricity and, in some cases, heat, serving as a backup power supply for buildings or facilities. As of March 2024, the US had about 210 operating fuel cell electric power generators, although fuel cells contributed to less than 1% of the country's total electricity generation in 2022.
Furthermore, hydrogen is used in transportation, with applications in fuel cell vehicles, buses, and forklifts. However, the high cost of fuel cells and the limited availability of hydrogen fueling stations have hindered the widespread adoption of hydrogen-fueled vehicles. Nevertheless, hydrogen has the potential to decarbonize heavy-duty transport where electric vehicles face challenges with energy storage and rapid refueling.
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Hydrogen-fuelled vehicles
Hydrogen fuel cell vehicles (HFCVs) are powered by electricity generated by combining hydrogen and oxygen in a fuel-cell stack. They are considered zero-emission vehicles as they emit only water vapour and heat as byproducts. Hydrogen can be stored as a gas or liquid, with liquid hydrogen requiring cooling to below -253°C and storage in super-cooled tanks.
The high cost of fuel cells and the limited availability of hydrogen fuelling stations have restricted the number of hydrogen-fuelled vehicles on US roads. As of 2022, there were fewer than 17,000 hydrogen-powered vehicles in the US, all located in California, the only state with a network of retail hydrogen fuelling stations. California's high gasoline prices have made hydrogen fuel cells more attractive to consumers, with hydrogen fuel prices in the state at around $14/kg in 2024 and above $32/kg in 2025.
Several vehicle manufacturers have developed hydrogen fuel cells for their vehicles, including Honda, Hyundai, and Toyota. However, Honda has ceased production of its hydrogen-powered car model, and Hyundai sold only about 1,600 Nexo SUVs in six years.
Hydrogen has the potential to reduce greenhouse gas emissions in the transportation sector, particularly for heavy-duty vehicles where battery technology may not be suitable. Hydrogen vehicles have a similar range to electric cars, and their performance is not affected by cold weather. However, electric-powered transport is currently 3-8 times more energy-efficient than hydrogen alternatives. Hydrogen production can also be energy-intensive and result in carbon dioxide and methane emissions, depending on the feedstock and production method. Nevertheless, hydrogen production costs are expected to decrease with increased production volume, making it a competitive alternative to gasoline in the future.
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Hydrogen production costs
In the United States, the cost of producing hydrogen from fossil fuels is $2.4/kg, while the cost of hydrogen produced from carbon capture and storage (CCS) is $2/kg. Hydrogen produced from electrolyzed water costs $4/kg, while solar thermochemical methods yield hydrogen at $3.6/kg, and wind energy at $3.7/kg. The National Energy Technology Laboratory estimated the levelized cost of hydrogen produced by newly built merchant plants in the United States using the steam methane reformer (SMR) process at $1.06 per kilogramme in 2018, or $8.00/MMBtu, including the cost of hydrogen compression. However, this cost does not include carbon dioxide capture, a byproduct of the SMR process. The cost of hydrogen production using SMR is projected to decrease to $1.28/kg by 2030.
The cost of electricity is a significant factor in green hydrogen production cost projections. The future cost of renewables is essential to building a well-founded estimate of green hydrogen costs. The cost of renewable electricity to produce hydrogen ranges from USD 3 to USD 8 per kg.
The cost of hydrogen production also varies depending on the application. For example, industries that manufacture electrical equipment, appliances, and components that require high-purity hydrogen pay a higher price for hydrogen, at $86.19/MMBtu.
There are ongoing efforts to reduce hydrogen production costs and increase its adoption as a clean fuel. The United States Department of Energy (DOE) has provided funding to support the development of affordable clean hydrogen energy, and federal policies have been implemented to expand hydrogen distribution networks and promote clean hydrogen production.
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Frequently asked questions
The US currently produces 10 million metric tons of hydrogen each year.
Hydrogen is used in industrial processes, including the production of fertiliser, the refining of petroleum, and the treatment of metals. It is also used as rocket fuel, and in fuel cells for electricity generation and powering vehicles.
In 2022, fuel cells provided less than 1% of total annual US electricity generation. Hydrogen transportation uses in the US include more than 50,000 fuel cell forklifts, nearly 50 retail hydrogen fuelling stations, over 80 fuel cell buses, and more than 15,000 fuel cell vehicles.
