Donald Trump might not be a big fan of game hunting, unlike his sons, but sometimes Trump’s spotlight does fall on something to be “hunted”. Currently, hydrogen is in Trump’s spotlight. We live in a world facing broken supply chains, ever-increasing global tensions, and relentless environmental scrutiny, with the U.S. standing at a critical and decisive point in time. Hydrogen can redefine America’s energy landscape, secure its agricultural backbone, and regain its strategic edge, but beware of the “Trump Effect.”
Why is hydrogen in the spotlight?
Hydrogen is quite resourceful. It’s simultaneously a fuel as well as a carrier of energy, being a channel for electrons that can energize power factories, propel trucks, and store our sun and wind’s bountiful energy. It’s also the backbone of agriculture, as it breaks down into ammonia that supplements our crops and, by extension, America.
According to the International Energy Agency (IEA), ammonia production utilizes over 50% of global hydrogen, but historically unstable regions like Russia and Ukraine supplied 20% of the world’s ammonia before they were struck by war. Per the World Bank, this toppled their exports, resulting in fertilizer prices skyrocketing 80% in just one year. This left a lasting impact on American farmers, while consumers felt the sting at the grocery store. If America could produce hydrogen locally, it would remedy costs and seize control from ill-willed hands.
This is how hydrogen can redefine America
Did you know that America holds over 500 trillion cubic feet of natural gas proved reserves, according to the Energy Information Administration (EIA)? This makes America ideal for blue hydrogen to contain carbon during manufacturing. Should the natural gas reserves be paired with America’s renewable potential, solar in the Southwest, wind in the Plains, hydro in the Northwest, and green hydrogen, powered by electrolysis, becomes highly achievable.
The Department of Energy’s Hydrogen Shot will be approximately $1 per kilogram by 2030, with Europe and China as America’s greatest competitors. Thanks to the country’s wealth of resources and willingness to take risks, it may just have the edge over its competitors, but only if the opportunity is seized. Per IEA forecasts, a vigorous hydrogen economy could power 20% of U.S. heavy industry by 2035.
Agriculture could change to hydrogen microgrids, which are small, self-reliant systems. This will protect rural communities from grid failures, a growing threat as wildfires and storms worsen. Hydrogen could tactically flip the American trade balance by exporting ammonia to Asia or fuel to Europe. This will compete with China’s grip on clean-tech hardware (70% of global electrolyzers in 2025).
This is how being in Trump’s spotlight can trigger the “Trump Effect”
Key role players in hydrogen applications are concerned with what others have dubbed the “Trump Effect.” Per a Reuters report in March, the US Department of Energy (DOE) conducted a department-wide review and is considering decreasing funds for four of seven hydrogen hubs selected to initiate clean hydrogen manufacturing across the US.
“There’s been a flurry of executive actions. Some sections of the IRA from the grants have come into question and including the hydrogen production tax credit.” – Mark Hutchinson, Fortescue Energy CEO
Air Products canceled three of its planned US projects, including a sustainable aviation fuel expansion project in California and a carbon monoxide project in Texas, as well as a green liquid hydrogen project in New York. Unfavorable economics, challenging commercial conditions, and regulatory conditions are to blame. They expect pre-tax charges of up to $3.1 billion in the second quarter of 2025.
With all the challenges of trying to “follow the law and align with the Trump administration’s priorities,” as well as the possible cuts in the $7 billion funding of the economics of clean energy projects, the dream of leading in hydrogen production seems less feasible.
Read the whole thing?
Get the week's signal, not the noise
Our sharpest reporting on energy, climate and nature — free, once a week.
