API Welcomes Administration’s Focus on Accelerating Hydrogen, Urges Technology-Neutral Approach

WASHINGTON, December 22, 2023 – The American Petroleum Institute (API) released the following statement today from API Senior Vice President of Policy, Economics and Regulatory Affairs Dustin Meyer after the U.S. Department of Treasury released its preliminary guidance on the 45V tax credit. The expansion of a hydrogen economy, including all forms of low-carbon hydrogen, is critical to meeting any meaningful emissions reductions goals, particularly in hard-to-abate sectors such as shipping, cement and steel manufacturing. 

“Our industry is leading the way in low-carbon hydrogen, investing billions in the nation’s largest hydrogen projects and driving innovation. Expanding the hydrogen economy is a key path for accelerating emissions reductions, and ensuring its full potential will require hydrogen of all types, a technology-neutral approach and solutions to buildout hydrogen infrastructure. We welcome the administration’s focus on this issue, and we look forward to working with the department to maximize the emissions reduction potential of low-carbon hydrogen through clear and consistent regulatory policies that advance our shared goal for a cleaner energy future.”

With the appropriate policies in place to encourage hydrogen development, the U.S. hydrogen economy could generate 700,000 jobs and an economic benefit of $140 billion by 2030. However, the current proposed production capacity of 6.5 MMT by 2030 still lags U.S. Department of Energy’s (DOE) goal of 10 MMT by the end of the decade. Clear, consistent policies – from Treasury’s 45V guidance to the permitting process for hydrogen infrastructure – are critical to achieving DOE’s hydrogen goals and accelerating emissions reductions across the economy. 

Learn more about API’s support for hydrogen solutions here. 

API represents all segments of America’s natural gas and oil industry, which supports more than 11 million U.S. jobs and is backed by a growing grassroots movement of millions of Americans. Our approximately 600 members produce, process and distribute the majority of the nation’s energy, and participate in API Energy Excellence®, which is accelerating environmental and safety progress by fostering new technologies and transparent reporting. API was formed in 1919 as a standards-setting organization and has developed more than 800 standards to enhance operational and environmental safety, efficiency and sustainability.

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