US leads quadrupling of global H2 subsidies

Financial heft of IRA far outweighs support offered by Europe and Asia Pacific, BloombergNEF says

State subsidies announced for low-carbon hydrogen have quadrupled over the last two years to around $280b, with the US standing out as by far the largest provider of support to the sector, according to analysis by research company BloombergNEF (BNEF). In the US, $137b is expected to flow to eligible projects over the next ten years, mainly via tax credits offered under the Inflation Reduction Act (IRA), BNEF analysis showed. “The US edge comes from the compelling offer of [up to] $3kg of low-carbon hydrogen produced – promised under the IRA,” says Adithya Bhashyam, associate, hydrogen, at BNEF. “The US support makes low-carbon hydrogen competitive with hydrogen from natural gas, enables econ