WASHINGTON, DC – FEBRUARY 14: U.S. President Donald Trump, accompanied by (L-R) Environmental … More Protection Agency (EPA) Administrator Lee Zeldin, Energy Secretary Chris Wright, Interior Secretary Doug Burgum and Transportation Secretary Sean Duffy, speaks before signing an executive order establishing the Energy Dominance Council led by Secretary of the Interior Doug Burgum in the Oval Office at the White House on February 14, 2025 in Washington, DC. President Trump signed a second executive order withholding federal funding from schools and universities that impose a COVID-19 vaccine mandate. (Photo by Andrew Harnik\/Getty Images)<\/p>\n
Getty Images<\/p>\n
The race to decarbonize the global economy hasn\u2019t ended yet, although it seems on somewhat shaky ground these days. Assuming the race continues, hydrogen has emerged as one of the linchpins for progress \u2014 a versatile, low-carbon fuel poised to transform industries from steelmaking to shipping.<\/p>\n
Not surprisingly, natural gas, increasingly the workhorse of today\u2019s energy system, is the key to unlocking America\u2019s leadership in the hydrogen sector. Far from being a relic of the fossil fuel past, natural gas\u2014abundant, affordable, and geopolitically secure in the United States\u2014offers a pragmatic means of seizing global leadership in the hydrogen sector. By leveraging it smartly, the U.S. can dominate the global hydrogen market, bolster its energy security, and meet rising international demand.<\/p>\n
Natural Gas: The Backbone of Hydrogen Today<\/p>\n
Here are some stubborn facts:<\/p>\n
This is where it gets really interesting: By pairing SMR with carbon capture and storage (CCS), we can produce hydrogen from natural gas while slashing emissions. This isn\u2019t a distant dream\u2014projects like ExxonMobil\u2019s Baytown facility<\/a> in Texas are already in motion. With plans to produce 1 billion cubic feet of hydrogen daily and capture 10 million metric tons of CO\u2082 annually, Baytown could become the world\u2019s largest low-carbon hydrogen plant. It\u2019s a blueprint for decarbonizing hard-to-abate sectors like manufacturing and heavy transport, where electrification alone won\u2019t cut it. And it\u2019s ready now, not decades in the future.<\/p>\n Chairman and CEO of ExxonMobil Darren Woods gestures as he speaks during a session at the Qatar … More Economic Forum in Doha on May 15, 2024. (Photo by KARIM JAAFAR \/ AFP) (Photo by KARIM JAAFAR\/AFP via Getty Images)<\/p>\n AFP via Getty Images<\/p>\n As with every other aspect of today\u2019s global energy picture, policy support is critical to this vision. The 45V tax credit, part of the Inflation Reduction Act, incentivizes clean hydrogen production by offsetting costs for projects like Baytown. Exxon CEO Darren Woods has made clear <\/a>that, without 45V locked in, the facility won\u2019t move forward. This isn\u2019t corporate posturing\u2014it\u2019s simple economics. Hydrogen can also drive demand for natural gas, creating a virtuous cycle that boosts production while advancing decarbonization.<\/p>\n America has all the tools it needs: It just needs the will to use them.<\/p>\n America\u2019s Edge in the Hydrogen Game<\/p>\n The U.S. isn\u2019t starting from scratch. Beyond its natural gas advantage, America already enjoys hydrogen infrastructure that\u2019s the envy of the world. One little known fact is that more than 1,600 miles of hydrogen pipelines<\/a> already crisscross the Gulf Coast, a legacy of decades of industrial use. More than just pipes in the ground\u2014this network represents a head start on scaling up distribution. Add to that an unmatched industrial base, a skilled energy workforce honed by decades in oil and gas, and expertise in CO\u2082 management from enhanced oil recovery and CCS projects. The U.S. doesn\u2019t need to reinvent this wheel; it\u2019s already rolling and has been in motion for years.<\/p>\n PRODUCTION – 22 July 2024, Lauffen am Neckar: At a construction site for a new pipeline for gas and … More hydrogen, the words “Ready for H2” are written on pipes. Energie Baden-W\u00fcrttemberg (EnBW) is investing around one billion euros in the construction of an initial infrastructure for hydrogen. The company is thus making a contribution to the development of a hydrogen core network in Germany worth billions. Photo: Bernd Wei\u00dfbrod\/dpa (Photo by Bernd Wei\u00dfbrod\/picture alliance via Getty Images)<\/p>\n dpa\/picture alliance via Getty Images<\/p>\n Compare that to the competition. China, the UAE, and Australia are gunning for hydrogen export dominance, but they face big hurdles<\/a>. China\u2019s coal-heavy energy mix and paucity of domestic natural gas production undercuts its low-carbon credentials and ability to bring blue hydrogen to scale.<\/p>\n The UAE leans on oil and gas but lacks the U.S.\u2019s pipeline network and industrial depth. Australia has vast renewable potential for green hydrogen, but its remoteness and reliance on untested electrolysis at scale leave gaps. The U.S., with its natural gas-driven blue hydrogen, can move faster and cheaper, leveraging existing systems while others build from the ground up.<\/p>\n The Global Prize In The Hydrogen Sweepstakes<\/p>\n