link to page 1 
July 8, 2022
Department of Energy Funding for Hydrogen and Fuel Cell
Technology Programs
The U.S. Department of Energy (DOE) Hydrogen Program,
units manufactured per year (which DOE calculates would
led by the Hydrogen and Fuel Cell Technologies Office
reduce the cost).
(HFTO) within the Office of Energy Efficiency and
Renewable Energy (EERE) addresses the development of
DOE describes its hydrogen program as being part of its
applications that use hydrogen in place of today’s fuels and
clean energy portfolio. DOE launched a “Hydrogen Shot”
technologies that provide modern energy services. DOE
initiative in June 2021, one of its “Energy Earthshots”
programs also consider hydrogen as an established
dedicated to the scale-up of emerging clean energy
chemical feedstock, for example, in petroleum refining. The
technologies. The goal of Hydrogen Shot is to make
DOE programs include over 400 projects of research and
hydrogen commercially available at a cost of $1 for 1
development (R&D), systems integration, demonstrations,
kilogram in 1 decade. The cost, as defined by DOE, is for
and initial deployment activities performed by universities,
production using electrolyzers that split water to make the
national laboratories, and industry. These programs cover
hydrogen and does not include delivery and dispensing.
the hydrogen energy value chain starting with producing the
DOE has numerous other goals and reviews these internally
hydrogen from diverse feedstocks; transporting and storing
and at its annual merit review, most recently in June 2022.
it; and finally using it in various applications.
DOE Spending
A future “hydrogen economy” using hydrogen as an energy
Within DOE, two offices—EERE and the Office of Fossil
carrier and fuel could offer an alternative to today’s
Energy and Carbon Management—are responsible for
economy with its prevalent combustion of fossil fuels.
executing over 80% of DOE’s budget authority on
Initially thought of as a new technology for personal
hydrogen and fuel cells in fiscal year (FY) 2022. The Office
mobility services (e.g., cars) and high-value applications
of Nuclear Energy and the Office of Science receive
such as provision of electric power during space flight,
smaller amounts of the DOE-wide total of $330.3 million in
hydrogen now is receiving attention for industrial
FY2022. (See Figure 1.)
processes, heavy vehicles, forklifts, portable power, and
buffering and balancing of electric power.
Figure 1. FY2022 Appropriations for DOE Hydrogen
Programs, by Office ($million, pending year-end)
Federal Hydrogen Programs
Authorizing Legislation
The Electric and Hybrid Vehicle Research, Development,
and Demonstration Act of 1976 (P.L. 94-413) authorized a
hydrogen program, which initially resided with the National
Science Foundation. Congress transferred overall
management responsibility of the hydrogen program to
DOE with the Spark M. Matsunaga Hydrogen Research,
Development, and Demonstration Program Act of 1990
(P.L. 101-566). The Energy Policy Act of 2005 (EPAct,
P.L. 109-58) and its subsequent amendments further
defined the program scope and purpose and established
administrative requirements such as annual reports.
Source: Sunita Satyapal, Director, DOE Hydrogen and Fuel Cell
The DOE Program
Technologies Office, 2022 AMR Plenary Session, June 6, 2022,
https://www.energy.gov/sites/default/files/2022-06/hfto-amr-plenary-
The DOE hydrogen program includes several offices with
satyapal-2022-1.pdf.
responsibility for supporting hydrogen work based on
different sources of energy (e.g., renewable, fossil, nuclear)
The FY2022 total may increase by end-of-year, once DOE
and types of end-use (e.g., vehicles, portable power,
offices determine how to allocate extramural spending
thermal comfort). DOE’s 2020 Hydrogen Program Plan
according to office and stakeholder priorities. For FY2023,
identifies key goals for the program including the cost of
DOE requested $406 million, and while the House
the hydrogen itself and the component costs of hydrogen-
Appropriations Committee approved the FY2023 Energy
consuming devices. For example, DOE has programs that
and Water Development and Related Agencies
aim to reduce the cost of the fuel cell system that powers a
appropriations bill on June 28, 2022 (H.R. 8255, H.Rept.
vehicle to $80 per kilowatt; DOE estimates it to be
117-394), the bill and report do not provide enough detail to
$185/kW with current technology and an assumed 100,000
determine a DOE-wide total for hydrogen programs.
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link to page 2 link to page 1 Department of Energy Funding for Hydrogen and Fuel Cell Technology Programs
Where DOE Spends the Money
the Regional Clean Hydrogen Hubs, DOE is to make
DOE’s hydrogen programs include grants, contracts, and
awards totaling $8 billion to support at least four
cooperative agreements awarded to investigators at
demonstration projects involving networks of clean
universities, industry, and national laboratories,
hydrogen producers and consumers and the connecting
encompassing more than 400 projects. These include R&D
infrastructure. Congress directed DOE to choose hubs with
focused on the hardware for a hydrogen economy and
a diversity of feedstocks (i.e., the primary resources
improving its technology, where R&D is intended to reduce
converted into hydrogen), together with varied types of
cost and improve performance of the fuel cell and other
end-use of the hydrogen in its various applications. DOE
parts of the hydrogen value chain. The projects also include
has conducted initial consultations and Requests for
work at higher levels of integration, such as to validate
Information (RFIs) and on June 6, 2022, issued a Notice of
first-of-a-kind systems across applications, reduce
Intent to Issue a Funding Opportunity Announcement.
technological risk, and address the “software” needs of a
hydrogen economy such as safety, codes, standards, and
IIJA also appropriated $500 million for the Clean Hydrogen
workforce development. In H.Rept. 117-394, the House
Manufacturing Recycling Research, Development, and
Appropriations Committee directed DOE to prioritize
Demonstration Program, with funding appropriated in five
partnerships with academia and national laboratories.
equal, annual installments starting with FY2022. DOE has
allocated these funds into two programs authorized by
Some of DOE’s hydrogen program’s projects progress in
EPAct (§815a and b; IIJA §40314) on manufacturing and
stages, starting with a policy decision or congressional
recycling. IIJA further appropriated $1 billion for the Clean
requirement leading to a funding opportunity announcement
Hydrogen Electrolysis Program, also appropriated in five
(FOA), receipt of proposals, and awarding of funds (grants,
equal annual installments, to achieve the goal of $2 per
etc.). An example of this is the Regional Clean Hydrogen
kilogram of produced hydrogen by 2026 (§40314). IIJA
Hubs designated in the Infrastructure Investment and Jobs
specifically calls for a demonstration project on electrolysis
Act (§40314, P.L. 117-58), discussed further below in
to validate information on cost and performance and to
“Recent Developments.” Other projects arise using funds
demonstrate electrolysis for clean hydrogen (§40314). DOE
not specifically designated by Congress as intended for
issued an RFI on both the IIJA programs in March 2022 “to
hydrogen (i.e., where the selection of a hydrogen-related
obtain feedback on the status of and opportunities for
topic is below the point of congressional control). DOE
technologies” and to “develop and refine the programs.”
takes input from networks of stakeholders to inform its
project selections. For example, Advanced Research
DOE approved a $504 million loan guarantee in June 2022
Projects Agency-Energy (ARPA-E) funding for hydrogen is
to construct 220 megawatts of electrolyzers in Delta, UT,
determined annually based on programs developed through
paired with underground storage caverns to store the
office and stakeholder priorities and defined, in part, by the
hydrogen produced. DOE says this will address cost
proposals it receives and awards; in FY2021 this included
reduction of hydrogen though the project is not explicitly
$34.3 million.
tied to the $2 per kilogram by 2026 goal. DOE used its Title
XVII authority under EPAct.
Hydrogen Programs at Non-DOE Federal Agencies
Several other agencies—Department of the Army, National
Congressional Considerations
Aeronautics and Space Administration, and Department of
In H.Rept. 117-394, the House Appropriations Committee
the Navy, among others—administer hydrogen programs;
reiterated that DOE should coordinate hydrogen and fuel
DOE estimates that, for FY2019 and FY2020 combined,
cell programs across DOE offices and specifically between
projects funded by these other hydrogen programs totaled
HFTO and the Vehicle Technologies Office. The report
over $40 million. Their projects range from basic research
noted that while the committee requested, in its report on
on materials and novel methods of producing hydrogen to
the FY2022 bill, a briefing on DOE cooperation with civil
activities aimed at early deployment, including
society and on low carbon intensity hydrogen, DOE had not
demonstrations of fuel cells in applications such as shore
yet conducted the briefing.
power or emergency response ground vehicles. DOE’s
HFTO has a coordinating role within the federal
IIJA required that DOE consider a number of goals (e.g.,
government as a whole. Congress has directed agencies to
long-term employment) for the $8 billion Regional Clean
cooperate on hydrogen and fuel cell activities and, in EPAct
Hydrogen Hubs and established timetables for DOE’s
(§806), directed the President to create, and DOE to lead,
implementation of these hubs. How and to what extent
an interagency working group; the group continues to meet
DOE implements these goals and how quickly it can make
monthly. The language in the IIJA (§40314) requires the
the awards may be of continued interest to Congress. IIJA
Secretary of Energy to develop a strategy and roadmap that,
further set a target for the cost of hydrogen that is to be
among other purposes, identifies points of interaction with
achieved roughly five years earlier than DOE’s own
federal agencies involved with hydrogen and clarifies the
Hydrogen Shot cost goal. How these two goals align in
responsibilities of those agencies.
practice may also be of interest to Congress.
Recent Developments
Martin C. Offutt, Analyst in Energy Policy
IIJA appropriated $9.5 billion for three hydrogen- and fuel
cell-related DOE programs (Division J, Title III) in addition
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to those amounts shown in Figure 1. In the largest of these,
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Department of Energy Funding for Hydrogen and Fuel Cell Technology Programs
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