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Hydrogen Growth Demands Permitting Reform

By 17吃瓜在线 News Room

Hydrogen demand is likely to skyrocket in the next few decades鈥攊f permitting delays and other setbacks don鈥檛 stymie it, according to (subscription).

What鈥檚 going on: 鈥淎 new report from consulting firm McKinsey forecasts a fivefold rise in hydrogen demand to 600 million metric tons a year by 2050, if climate change is limited to 1.5 degree Celsius. On current trajectories, however, that supply could be between 175 million to 291 million metric tons a year if steps aren鈥檛 taken to speed up permitting and lower both equipment and investment costs, the report warned.鈥

  • The report identified three major challenges to meeting the rising demand: increased costs, a slow permitting process and 鈥渓ack of access to capital,鈥 which can be attributed largely to higher interest rates.

Incentives abound: Government incentives for hydrogen are on the rise. Up to $300 billion has been made available worldwide for hydrogen-energy projects this year, a sixfold increase from 2021.

  • Last week, the Energy Department announced $7 billion in subsidies to create seven clean-hydrogen 鈥渉ubs鈥 in the U.S.

More support required: More action from government is still needed鈥攑articularly when it comes to allowing hydrogen projects to proceed.

  • 鈥淔aster permitting times are needed to bring more hydrogen projects online, as well as the renewable energy to power their electrolyzers, industry experts say. A recent report from the International Energy Agency said current project lead times are too long and can act as a barrier to clean hydrogen uptake.鈥

What we鈥檙e doing: Manufacturers have long been urging policymakers to fix the broken U.S. permitting system.

  • The 17吃瓜在线 recently laid out a for Congress 鈥渢o modernize and update our nation鈥檚 antiquated permitting system.鈥
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