link to page 1 link to page 1 
June 28, 2024
DOE Hydrogen Program Appropriations: FY2025
The U.S. Department of Energy (DOE) Hydrogen Program
achieving a clean hydrogen economy: reducing cost and
addresses the development of applications that use
improving performance; de-risking and scaling up
hydrogen in place of today’s fuels to provide modern
technologies across the value chain; and addressing barriers
energy services. The program also considers hydrogen as an
to large-scale adoption. DOE’s “Hydrogen Shot” goal for
established industrial chemical, for example, in petroleum
the cost of hydrogen is $1/kilogram (kg) by 2031, not
refining. The DOE program includes over 400 projects
including delivery and dispensing, for production using
involving research and development (R&D), systems
electrolyzers that make hydrogen from water. Currently, the
integration, and demonstration and deployment activities—
cost of hydrogen made with electrolyzers is $5/kg to $7/kg.
collectively performed by universities, national
The MYPP has a goal of <$7 per kg, dispensed at the pump,
laboratories, and industry. These projects cover the energy
for hydrogen used in trucks by 2028. The cost of delivered
value chain starting with producing hydrogen from diverse
hydrogen currently ranges from $12/kg to $16/kg.
feedstocks; transporting and storing it; and finally using it
in various applications. The program is led by the Hydrogen
DOE Budget Authority and Request
and Fuel Cell Technologies Office (HFTO) within the DOE
Within DOE, two offices—EERE and the Office of Fossil
Office of Energy Efficiency and Renewable Energy
Energy and Carbon Management—were responsible for
(EERE), with participation by other DOE offices.
executing over 80% of DOE’s budget authority on
hydrogen and fuel cells from the FY2024 annual
A future “hydrogen economy” using hydrogen as an energy
appropriation. The Office of Nuclear Energy and the Office
carrier and fuel could offer an alternative to today’s
of Science received smaller percentages. In FY2024, the
economy, with its prevalent combustion of fossil fuels.
joint explanatory statement accompanying the Consolidated
Initially thought of as a new technology for personal
Appropriations Act, 2024 (P.L. 118-42) directed $396.0
mobility services (e.g., cars) and high-value applications
million to the hydrogen crosscutting initiative. DOE
such as provision of electric power during space flight,
anticipates that by the end of 2024, it will announce funding
hydrogen is also receiving attention for industrial processes,
for hydrogen by ARPA-E (Advanced Research Projects
heavy vehicles, forklifts, portable power, and buffering and
Agency-Energy).
balancing of grid electric power. For more information, see
CRS Report R47487, The Hydrogen Economy: Putting the
Figure 1. FY2025 Budget Request for Hydrogen
Pieces Together, by Martin C. Offutt.
Activities at DOE, by Office
(in millions of dollars)
Federal Hydrogen Programs
Authorizing Legislation
The Electric and Hybrid Vehicle Research, Development,
and Demonstration Act of 1976 (P.L. 94-413) authorized a
federal hydrogen program, initially at 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 Act of 1990 (P.L. 101-566). The Energy
Policy Act of 2005 (EPAct; P.L. 109-58) and its
amendments, including the Infrastructure Investment and
Jobs Act (IIJA; P.L. 117-58), further defined the DOE
hydrogen program’s scope and purpose.
The DOE Hydrogen Program
Participants in the DOE Hydrogen Program include several
offices with responsibility for supporting hydrogen work
Source: DOE FY2025 Congressional Justification. ARPA-E funding
based on different sources of energy (e.g., renewable, fossil,
for hydrogen is determined annually based on programs developed
nuclear) and types of end use (e.g., vehicles, portable
through office and stakeholder priorities and defined, in part, by the
power, thermal comfort). DOE’s June 2023 National Clean
proposals it receives and awards. Any ARPA-E funding would add to
Hydrogen Strategy and Roadmap envisages 10 million
the above.
metric tons of new production of hydrogen per year by
2030, further stipulated to be “clean hydrogen” as defined
For FY2025, the President’s budget request for the DOE
in statute and DOE regulation. The DOE May 2024 Multi-
hydrogen crosscutting initiative was $377.2 million (Figure
Year Program Plan (MYPP) identifies challenges to
1). The funding for HFTO makes up the majority of
https://crsreports.congress.gov
link to page 1 DOE Hydrogen Program Appropriations: FY2025
funding from EERE in Figure 1, as well as the majority of
Greenhouse Gases, Regulated Emissions, and Energy Use
EERE prior-year appropriations. HFTO intends to divide its
in Technologies (GREET), the model the IRA requires to
$170 million request for FY2025 as follows: hydrogen
be used to determine whether the “well-to-gate” greenhouse
production, $15 million; infrastructure, $52 million; fuel
gas (GHG) emissions meet the threshold for eligibility for
cells, $25 million; systems development and integration,
the tax credit and at what dollar level. Further information
$75 million; and analysis, $3 million.
is available in CRS In Focus IF12602, The Clean Hydrogen
Production Credit: How the Incentives are Structured, by
In addition to annual appropriations, DOE received
Nicholas E. Buffie and Martin C. Offutt.
hydrogen-related advance appropriations from the IIJA for
FY2022 through FY2026. These include funds for two
Recent Developments
programs—Clean Hydrogen Manufacturing and Recycling
On February 9, 2024, ARPA-E announced the awarding of
Research, Development, and Demonstration; and Clean
$20.0 million of FY2023 funds for geologic hydrogen for
Hydrogen Electrolysis—which together were appropriated
16 projects. One-half the amount of the awards went to
$300 million for each of FY2022 through FY2026. On
universities and roughly one-quarter each to the private
March 13, 2024, DOE announced funding for the first $750
sector and to DOE national laboratories. The projects
million in funding for these two programs. The IIJA also
collectively would address two areas. In one area, projects
appropriated $8 billion for Regional Clean Hydrogen Hubs.
would consider management of reservoirs of naturally
In October 2023, DOE announced up to $7 billion available
occurring hydrogen; these projects would receive roughly
for awards negotiations to seven hubs.
two-thirds of funds. In a second area, projects would focus
on the subsurface production of hydrogen through
Where DOE Spends the Money
stimulated mineralogical processes; these projects would
DOE’s Hydrogen Program awards grants, contracts, and
receive roughly one-third of funds. ARPA-E also
cooperative agreements to investigators at universities, at
announced the awarding of funds to Argonne National
national laboratories, and in industry. This supports over
Laboratory to expand GREET to include additional
400 projects. These include R&D focused on the hardware,
pathways for manufacturing hydrogen.
such as the fuel cell, for a hydrogen economy. R&D is
intended to reduce cost and improve performance of
On October 13, 2023, President Biden and Energy
production and end-use technology and other parts of the
Secretary Granholm announced seven grant awards for the
hydrogen value chain. The projects also include work at
Regional Clean Hydrogen Hubs (IIJA §40314) to receive
higher levels of integration, such as to validate first-of-a-
total funding of up to $7 billion. On January 17, 2024, DOE
kind systems, reduce technological risk, and address the
announced that it had selected a consortium to receive
other aspects of a hydrogen economy (e.g., safety, codes
$1 billion for a Demand-Side Support Initiative as part of
and standards, and workforce development). In H.Rept.
the Regional Clean Hydrogen Hubs. The Hubs received
118-126, which the joint explanatory statement to P.L. 118-
advance appropriations of $1.6 billion for each of FY2022
42 incorporated by reference, the House Appropriations
through FY2026.
Committee encouraged DOE to examine the potential of
hydrogen to provide power for electric vehicle charging in
Congressional Considerations
grid-constrained locations.
H.Rept. 118-126 and S.Rept. 118-72 directed that DOE
coordinate hydrogen and fuel cell programs across DOE
Hydrogen Programs at Non-DOE Federal Agencies
offices. S.Rept. 118-72 noted the number of coordination
DOE’s HFTO has a coordinating role for hydrogen
mechanisms, including crosscuts and “Earthshots,” such as
activities across the executive branch. Several other
the Hydrogen Shot discussed above, and directed DOE to
agencies—the Department of the Army, National
simplify and consolidate these into one function.
Aeronautics and Space Administration, and Department of
the Navy, among others—administer hydrogen programs.
Congress continues to be interested in certain hydrogen
DOE estimates that, for FY2022 and FY2023 combined,
topics. One topic is the 45V tax credit and how much of it
projects funded by non-DOE hydrogen programs totaled
can be claimed for the Regional Clean Hydrogen Hubs,
over $70.0 million, an increase of roughly $30.0 million
which was discussed in the March 20, 2024, House
from combined FY2019 and FY2020. The projects range
Appropriations Subcommittee on Energy and Water
from basic research on fuel cells to activities aimed at early
Development’s Hearing on the Fiscal Year 2025 Budget
deployment, including demonstrations of fuel cells in
Request for the Department of Energy. Another topic is the
applications such as forklifts and unmanned underwater and
development and update of GREET, which could inform
aerial vehicles.
adjustments to project eligibility for the 45V credit and at
what dollar level. A final topic is how and to what extent
P.L. 117-169, commonly known as the Inflation Reduction
DOE considers the IIJA-required goals for the Regional
Act of 2022 (IRA), created the Clean Hydrogen Production
Clean Hydrogen Hubs (e.g., long-term employment, and
Tax Credit in Internal Revenue Code Section 45V. The
feedstock and end-use diversity) and how quickly DOE
Department of the Treasury published a notice of proposed
obligates IIJA funding.
rulemaking (NPRM) and notice of public hearing on
December 26, 2023, for implementing 45V. In S.Rept. 118-
Martin C. Offutt, Analyst in Energy Policy
72, which the joint explanatory statement to P.L. 118-42
incorporated by reference, the Senate Appropriations
IF12699
Committee instructed DOE to support updates to
https://crsreports.congress.gov
DOE Hydrogen Program Appropriations: FY2025
Disclaimer
This document was prepared by the Congressional Research Service (CRS). CRS serves as nonpartisan shared staff to
congressional committees and Members of Congress. It operates solely at the behest of and under the direction of Congress.
Information in a CRS Report should not be relied upon for purposes other than public understanding of information that has
been provided by CRS to Members of Congress in connection with CRS’s institutional role. CRS Reports, as a work of the
United States Government, are not subject to copyright protection in the United States. Any CRS Report may be
reproduced and distributed in its entirety without permission from CRS. However, as a CRS Report may include
copyrighted images or material from a third party, you may need to obtain the permission of the copyright holder if you
wish to copy or otherwise use copyrighted material.
https://crsreports.congress.gov | IF12699 · VERSION 1 · NEW