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This is an opinion piece by Will Hardy, the state director of Conservatives for Clean Energy Louisiana, and does not necessarily reflect the opinion of Business Report or its staff.
Growing global power demand cannot be ignored. In the world of continuing technological advancement, America needs more reliable, affordable and secure power generation—such as hydrogen.
American hydrogen production is imperative to ensure America maintains its global energy dominance. China and other foreign entities increasingly prioritize clean energy avenues like hydrogen, and we cannot afford to be left behind. We must lead.
As a nation built on free market principles and innovation, America should be the country leading the rest of the world in energy advancement. We have the resources, tools and economic environment necessary to fuel the energy expansion boom. To enable energy dominance, America needs sources of energy that are more abundant and more affordable. As a resource that satisfies both criteria while meeting existing low-carbon energy goals, hydrogen can be the scalable, versatile, and efficient cornerstone of innovation in domestic energy production that allows the U.S. to offer a greater diversity of high-value energy products to the world market.
America’s industrial sector is the second largest consumer of natural gas, an abundant and reliable source of energy that produces fewer air pollutants. Hydrogen produced from natural gas—otherwise known as blue hydrogen—can make America’s manufacturing and industrial sectors cleaner and more efficient.
In Louisiana particularly, our decades-old energy pedigree and skilled workforce position the state to dominate clean hydrogen production. We need to unleash our energy potential by helping rather than hindering companies wishing to invest in Louisiana clean hydrogen production, which will create jobs and revitalize our communities. According to a new report from Citizens for Responsible Energy Solutions (CRES) Forum, in Louisiana blue hydrogen will create around 9,000 jobs annually in the construction phase. The report projects that nearly 17,500 permanent jobs are estimated to be created if blue hydrogen production is scaled. Blue hydrogen is a boon for Louisiana’s economic growth.
In the areas of global energy competitiveness and energy leadership, clean hydrogen must be part of the equation in our state. The U.S. currently produces about 14% of the world’s hydrogen. The Department of Energy’s planned Regional Clean Hydrogen Hub program —established by the bipartisan Infrastructure Investment and Jobs Act—positions the Gulf Coast as one of the centers of hydrogen production, storage, and delivery. America’s hydrogen industry also boasts 200,000 jobs already and is on track to create 700,000 jobs by 2030 and 3.4 million jobs by 2050.
Despite this, our current hydrogen output lags behind China, which produces 30% of the world’s hydrogen. China and other foreign adversaries and competitors have outlined national hydrogen strategies, with China designating hydrogen energy a “frontier area” and considering it one of the six industries of the future.
Even so, announced investments in U.S. clean hydrogen projects have increased by tens of billions of dollars. Additionally, 95% of existing U.S. hydrogen capacity uses natural gas (a key Louisiana industry) as the primary feedstock, whereas about two-thirds of China’s hydrogen is derived from coal. Increasing our blue hydrogen production can power American efforts to outpace China in natural gas production and utilization.
To emerge as a global hydrogen energy leader, the U.S. must unleash our energy expertise, skilled workforce, and free-market perspective. No other country has the mix of natural resources, industry experience and economic makeup that America has. If we can prioritize clean hydrogen as a key part of our energy strategy, the U.S. will secure its place as a behemoth in the future of global energy production, with Louisiana being a key player in America’s energy dominance.
According to Louisiana Economic Development, global hydrogen production is set to quadruple by 2050. In Louisiana, private investment is pouring in. Over $20 billion of hydrogen energy projects have been announced, with the key to the hydrogen industry in Louisiana being its large-scale, advanced pipe network that veins through every major interstate and waterway in our state.
The tax revenue benefits also cannot be ignored. Currently, energy tax credits like 45V for hydrogen production greatly contribute to American energy dominance. Proposed cuts to these energy modernization incentives will put our ability to lead in jeopardy. Protecting energy modernization incentives like 45V will ensure that natural gas and its use to produce blue hydrogen remains part of the backbone of America’s energy independence, economic growth and national security strategy. Weakening or repealing these incentives supporting hydrogen production will stifle American innovation and growth, put American jobs in jeopardy, and make it nearly impossible to compete with foreign powers like China.
Louisiana has always dominated energy production, and investing in clean hydrogen production fits our existing industry expertise, skilled workforce and energy expansion goals. If we want energy independence, innovative energy sources like clean hydrogen are critical. With energy innovation, Louisiana can’t afford to be a follower. As always, Louisiana can and should be a leader.
