In a recent report, ‘Hydrogen Insights 2022’ the Hydrogen Council in collaboration with McKinsey & Co state that capturing the maximum climate value of hydrogen to help meet the 2050 net-zero carbon emissions target requires a tripling of investment in hydrogen projects to $700-billion by 2030.

This is equivalent to an additional $460-billion over and above the $240-billion of direct investment between now and 2030 already announced.

In this context, the US Inflation Reduction Act (IRA) is welcome news, says industry organisation the World Platinum Investment Council (WPIC).

Passed by Congress in August, the Act sets out plans to invest $369-billion over ten years into energy and climate programmes, injecting significant sums into clean energy and electric vehicle incentives and programmes, the council outlines.

The WPIC posits that the Act has been highlighted as a “game-changer” for the growing green hydrogen sector.

By offering a $3/kg tax credit for lower-carbon hydrogen, subject to certain requirements, it is expected to make green hydrogen produced in the US the most cost competitive in the world.

At the same time, the IRA also includes a variety of grants supporting the domestic production of clean transportation technologies, including hydrogen fuel cell electric vehicles (FCEVs), the council points out.

The WPIC outlines that, owing to its unique chemical and physical properties, platinum is at the forefront of proton exchange membrane (PEM) applications – transformative technology that holds the key to unlocking the zero-emissions potential of hydrogen.

PEM technology is used in both electrolysers to produce green hydrogen from renewable energy and in hydrogen fuel cells which can power FCEVs.

The passing of the IRA is expected to stimulate the use of green hydrogen in industries, such as shipping, aviation, heavy industry and transport, that are seeking ways to decarbonise, the WPIC highlights.

The hydrogen division of Howden, a provider of hydrogen compression solutions, has already stated that it will step up its investment in hydrogen projects in the US on the back of the IRA, the council notes.

It adds that subsequent to the passing of the IRA, Bosch, a global supplier of technology and services, also announced a $200-million investment to produce hydrogen fuel cell stacks in the US.

The fuel cell stacks will be used to drive hydrogen-powered trucks coming to the roads of the US in the next few years, with Bosch aiming to be one of the first to market with large-scale production to support hydrogen-powered commercial vehicles.

The company recently announced it would invest more than $1-billion globally to develop mobile fuel cell technologies by 2024.