The road to economy-wide decarbonization is being met with high traffic, which, if well run, will ensure a sustainable future for our planet. One path to that future is through hydrogen.
Hydrogen is seen as a major driver to lowering emissions across transportation, the electric grid, and heavy manufacturing industries—which make up over half of U.S. greenhouse gas emissions. BloombergNEF’s Energy Outlook 2022 found “hydrogen production will rise to 500 million metric tons annually in 2050.” This hydrogen transition will require nearly $2 trillion in investment by 2050.
But here’s the caveat—hydrogen can only advance these goals if produced in a clean way. Current hydrogen production relies heavily on splitting natural gas, a carbon-emitting process. A clean hydrogen future will require a shift from the existing hydrogen production processes to the use of electrolysis or thermochemical processes utilizing carbon-free energy. This is where nuclear-produced hydrogen really starts to shine.
Creating a clean hydrogen market will require both more hydrogen production and a functioning market that works for hydrogen customers. In the case of industrial applications, large amounts of clean hydrogen will be needed on a consistent basis before these users can make the switch. And nuclear is the perfect solution thanks to its ability to produce 24/7/365. As a recent report from the OECD-NEA found, “nuclear stands out as the most competitive solution to deliver an unremitting flow of low-carbon hydrogen over large distances to industries, particularly in places where cheap variables sources are not available at the sufficient scale.”
But to move clean hydrogen from models and reports to reality will require action. Nuclear energy is ahead of the curve, already playing a role in building the hydrogen market. Utilities are leveraging existing nuclear plants to produce hydrogen as part of a Department of Energy pilot program, which includes the Idaho National Lab, Xcel Energy, Arizona Public Service, and Energy Harbor. Earlier this year, Constellation’s Nine Mile Point Nuclear Plant in New York became the first nuclear plant to produce hydrogen.
Attention for nuclear in the hydrogen market is growing. A recent poll of NEI member utilities showed that 57 percent of sites are considering carbon-free hydrogen generation.
These efforts continue to develop as policymakers signal confidence for a clean hydrogen market. The urgency to scale up clean hydrogen has been made clear through major pieces of legislation, which outline existing and next-generation nuclear plants to make this a reality.
A major effort underway is through the Department of Energy’s Regional Clean Hydrogen Hubs program passed under the bipartisan Infrastructure Act. Each hub will include energy users like heavy transportation, automotive and steel manufacturers, and companies looking to reduce carbon emissions. As part of this effort, Congress directed that at least one of the hubs include hydrogen produced using existing nuclear plants. The good news is that nuclear operators located in these hubs are already doing the work to generate carbon-free hydrogen.
The historic Inflation Reduction Act is a cornerstone to realizing the potential of clean hydrogen. The legislation included tax credits for hydrogen produced from clean sources, including both from today’s nuclear plants and future nuclear plants. This tax credit helps unlock the investments that will be needed to move from pilot and demonstration projects to full scale commercialization.
Realizing the full potential of the Clean Hydrogen Production Tax Credit will require the U.S. Treasury to provide guidance that is both inclusive and forward-looking. This is why NEI has been at the forefront in advocating for guidance that allows existing nuclear plants to qualify for this important credit. Implementing extraneous provisions, like additionality, risks squandering this incredible opportunity for the hydrogen economy.
With all the talk about federal hydrogen policy it’s important to remember that support for nuclear-generated hydrogen extends beyond the nation’s capital to state legislatures. Nebraska and Minnesota are particularly interested in nuclear-produced hydrogen and have studies in place to explore further.
Down the road, advanced nuclear technologies will complement the efforts of today’s plants in generating clean hydrogen. These new nuclear reactor designs can facilitate higher temperatures and more flexible operations, unlocking more efficient pathways for clean hydrogen production. This year, NuScale and Shell announced a partnership to develop a concept that will use electricity and process heat from NuScale’s SMR for hydrogen production.
Attention on carbon-free hydrogen is growing—and for good reason. The opportunity for it to propel us toward a clean economy is great. But it will require prioritizing clean and reliable technologies that we have today and in the future. As with any promising new market, the road to get there takes time and comes with debate, but the urgency to keep moving forward is critical if we want to meet our climate goals. Misguided decisions should not stand in the way of a clean energy future. That's why we must do it with nuclear energy—the clearest path forward.
Hydrogen is seen as a major driver to lowering emissions across transportation, the electric grid, and heavy manufacturing industries—which make up over half of U.S. greenhouse gas emissions. BloombergNEF’s Energy Outlook 2022 found “hydrogen production will rise to 500 million metric tons annually in 2050.” This hydrogen transition will require nearly $2 trillion in investment by 2050.
But here’s the caveat—hydrogen can only advance these goals if produced in a clean way. Current hydrogen production relies heavily on splitting natural gas, a carbon-emitting process. A clean hydrogen future will require a shift from the existing hydrogen production processes to the use of electrolysis or thermochemical processes utilizing carbon-free energy. This is where nuclear-produced hydrogen really starts to shine.
Creating a clean hydrogen market will require both more hydrogen production and a functioning market that works for hydrogen customers. In the case of industrial applications, large amounts of clean hydrogen will be needed on a consistent basis before these users can make the switch. And nuclear is the perfect solution thanks to its ability to produce 24/7/365. As a recent report from the OECD-NEA found, “nuclear stands out as the most competitive solution to deliver an unremitting flow of low-carbon hydrogen over large distances to industries, particularly in places where cheap variables sources are not available at the sufficient scale.”
But to move clean hydrogen from models and reports to reality will require action. Nuclear energy is ahead of the curve, already playing a role in building the hydrogen market. Utilities are leveraging existing nuclear plants to produce hydrogen as part of a Department of Energy pilot program, which includes the Idaho National Lab, Xcel Energy, Arizona Public Service, and Energy Harbor. Earlier this year, Constellation’s Nine Mile Point Nuclear Plant in New York became the first nuclear plant to produce hydrogen.
Attention for nuclear in the hydrogen market is growing. A recent poll of NEI member utilities showed that 57 percent of sites are considering carbon-free hydrogen generation.
These efforts continue to develop as policymakers signal confidence for a clean hydrogen market. The urgency to scale up clean hydrogen has been made clear through major pieces of legislation, which outline existing and next-generation nuclear plants to make this a reality.
A major effort underway is through the Department of Energy’s Regional Clean Hydrogen Hubs program passed under the bipartisan Infrastructure Act. Each hub will include energy users like heavy transportation, automotive and steel manufacturers, and companies looking to reduce carbon emissions. As part of this effort, Congress directed that at least one of the hubs include hydrogen produced using existing nuclear plants. The good news is that nuclear operators located in these hubs are already doing the work to generate carbon-free hydrogen.
The historic Inflation Reduction Act is a cornerstone to realizing the potential of clean hydrogen. The legislation included tax credits for hydrogen produced from clean sources, including both from today’s nuclear plants and future nuclear plants. This tax credit helps unlock the investments that will be needed to move from pilot and demonstration projects to full scale commercialization.
Realizing the full potential of the Clean Hydrogen Production Tax Credit will require the U.S. Treasury to provide guidance that is both inclusive and forward-looking. This is why NEI has been at the forefront in advocating for guidance that allows existing nuclear plants to qualify for this important credit. Implementing extraneous provisions, like additionality, risks squandering this incredible opportunity for the hydrogen economy.
With all the talk about federal hydrogen policy it’s important to remember that support for nuclear-generated hydrogen extends beyond the nation’s capital to state legislatures. Nebraska and Minnesota are particularly interested in nuclear-produced hydrogen and have studies in place to explore further.
Down the road, advanced nuclear technologies will complement the efforts of today’s plants in generating clean hydrogen. These new nuclear reactor designs can facilitate higher temperatures and more flexible operations, unlocking more efficient pathways for clean hydrogen production. This year, NuScale and Shell announced a partnership to develop a concept that will use electricity and process heat from NuScale’s SMR for hydrogen production.
Attention on carbon-free hydrogen is growing—and for good reason. The opportunity for it to propel us toward a clean economy is great. But it will require prioritizing clean and reliable technologies that we have today and in the future. As with any promising new market, the road to get there takes time and comes with debate, but the urgency to keep moving forward is critical if we want to meet our climate goals. Misguided decisions should not stand in the way of a clean energy future. That's why we must do it with nuclear energy—the clearest path forward.
