Department of Energy Funding for Hydrogen and Fuel Cell Technology Programs FY2022

Department of Energy Funding for Hydrogen and Fuel Cell Technology Programs FY2022

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Updated March 23, 2023
Department of Energy Funding for Hydrogen and Fuel Cell
Technology Programs FY2022
The U.S. Department of Energy (DOE) Hydrogen Program,
baseline cost to be $200/kW with current technology and an
led by the Hydrogen and Fuel Cell Technologies Office
assumed 100,000 units manufactured per year (which DOE
(HFTO) within the Office of Energy Efficiency and
calculates would reduce the cost).
Renewable Energy (EERE) addresses the development of
applications that use hydrogen in place of today’s fuels and
DOE describes its hydrogen program as being part of its
technologies that provide modern energy services. DOE
clean energy portfolio. DOE launched a “Hydrogen Shot”
programs also consider hydrogen as an established
initiative in June 2021, one of its “Energy Earthshots”
chemical feedstock, for example, in petroleum refining. The
dedicated to the scale-up of emerging clean energy
DOE programs include over 400 projects of research and
technologies. The goal of Hydrogen Shot is to make
development (R&D), systems integration, demonstrations,
hydrogen commercially available at a cost of $1 for 1
and initial deployment activities performed by universities,
kilogram in 1 decade. The cost, as defined by DOE, is for
national laboratories, and industry. These programs cover
production using electrolyzers that split water to make the
the hydrogen energy value chain starting with producing the
hydrogen and does not include delivery and dispensing.
hydrogen from diverse feedstocks; transporting and storing
DOE has numerous other goals and reviews these internally
it; and finally using it in various applications.
and at its annual merit review, most recently in June 2022.
A future “hydrogen economy” using hydrogen as an energy
DOE Spending
carrier and fuel could offer an alternative to today’s
Within DOE, two offices—EERE and the Office of Fossil
economy with its prevalent combustion of fossil fuels.
Energy and Carbon Management—are responsible for
Initially thought of as a new technology for personal
executing over 80% of DOE’s budget authority on
mobility services (e.g., cars) and high-value applications
hydrogen and fuel cells in fiscal year (FY) 2022. The Office
such as provision of electric power during space flight,
of Nuclear Energy, Office of Science, and ARPA-E
hydrogen now is receiving attention for other applications,
(Advanced Research Projects Agency-Energy) received
including industrial processes, heavy vehicles, forklifts,
smaller amounts of the DOE-wide total of $318.8 million in
portable power, and electric power buffering and balancing.
FY2022. (See Figure 1.)
Federal Hydrogen Programs
Figure 1. FY2022 Appropriations for DOE Hydrogen
Programs, by Office ($million)
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.
The DOE Program
The DOE hydrogen program includes several offices with
responsibility for supporting hydrogen work based on
different sources of energy (e.g., renewable, fossil, nuclear)

and types of end-use (e.g., vehicles, portable power,
Source: Department of Energy FY2024 Congressional
thermal comfort). DOE’s September 2022 draft National
Justification: Vol. 4, Energy Efficiency and Renewable Energy, March 2023,
Clean Hydrogen Strategy and Roadmap identifies key
at https://www.energy.gov/sites/default/files/2023-03/doe-fy-2024-
milestones for the program goals including the cost of the
budget-vol-4-eere-v2.pdf.
hydrogen itself and the component costs of hydrogen-
consuming devices. For example, DOE has programs that
aim to reduce the cost of the fuel cell system that powers a
heavy-duty vehicle to $80 per kilowatt; DOE estimates the
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Where DOE Spends the Money
to those amounts shown in Figure 1. In the largest of these,
DOE’s hydrogen programs include grants, contracts, and
the Regional Clean Hydrogen Hubs, DOE is to make
cooperative agreements awarded to investigators at
awards totaling $8 billion to support demonstration projects
universities, industry, and national laboratories,
involving networks of clean hydrogen producers and
encompassing more than 400 projects. These include R&D
consumers and the connecting infrastructure. Congress
focused on the hardware for a hydrogen economy and
directed DOE to choose hubs with a diversity of feedstocks
improving its technology, where R&D is intended to reduce
(i.e., the primary resources converted into hydrogen),
cost and improve performance of the fuel cell and other
together with varied types of end-use of the hydrogen in its
parts of the hydrogen value chain. The projects also include
various applications. On September 22, 2022, DOE issued a
work at higher levels of integration, such as to validate
Funding Opportunity Announcement for a first tranche of
first-of-a-kind systems across applications, reduce
up $7 billion to support six to ten Regional Clean Hydrogen
technological risk, and address the “software” needs of a
with proposals due by April 7, 2023. In December 2022,
hydrogen economy such as safety, codes, standards, and
DOE sent letters of encouragement to submit formal
workforce development. In H.Rept. 117-394, the House
applications to 33 groups, based on concept papers those
Appropriations Committee directed DOE to prioritize
groups had submitted.
partnerships with academia and national laboratories.
IIJA also appropriated $500 million for the Clean Hydrogen
Some of DOE’s hydrogen program’s projects progress in
Manufacturing Recycling Research, Development, and
stages, starting with a policy decision or congressional
Demonstration Program, with funding appropriated in five
requirement leading to a funding opportunity announcement
equal, annual installments starting with FY2022. DOE has
(FOA), receipt of proposals, and awarding of funds (grants,
allocated these funds into two programs authorized by
etc.). An example of this is the Regional Clean Hydrogen
EPAct (§815a and b; IIJA §40314) on manufacturing and
Hubs designated in the Infrastructure Investment and Jobs
recycling. IIJA further appropriated $1 billion for the Clean
Act (§40314, P.L. 117-58), discussed further below in
Hydrogen Electrolysis Program, also appropriated in five
“Recent Developments.” Other projects arise using funds
equal annual installments, to achieve the goal of $2 per
not specifically designated by Congress as intended for
kilogram of produced hydrogen by 2026 (§40314). IIJA
hydrogen (i.e., where the selection of a hydrogen-related
specifically calls for a demonstration project on electrolysis
topic is below the point of congressional control). DOE
to validate information on cost and performance and to
takes input from networks of stakeholders to inform its
demonstrate electrolysis for clean hydrogen (§40314). DOE
project selections. For example, ARPA-E funding for
issued a Request for Information on these IIJA programs in
hydrogen is determined annually based on programs
March 2022 and issued a Funding Opportunity
developed through office and stakeholder priorities and
Announcement in March 2023.
defined, in part, by the proposals it receives and awards; in
FY2022 this included $2 million.
DOE approved a $504 million loan guarantee in June 2022
to construct 220 megawatts of electrolyzers in Delta, UT,
Hydrogen Programs at Non-DOE Federal Agencies
paired with underground storage caverns to store the
Several other agencies—Department of the Army, National
hydrogen produced from excess renewable electricity. DOE
Aeronautics and Space Administration, and Department of
says this will address cost reduction of hydrogen though the
the Navy, among others—administer hydrogen programs;
project is not explicitly tied to the $2 per kilogram by 2026
DOE estimates that, for FY2019 and FY2020 combined,
goal. DOE used its Title XVII authority under EPAct.
projects funded by these other hydrogen programs totaled
over $40 million. Their projects range from basic research
Congressional Considerations
on materials and novel methods of producing hydrogen to
In H.Rept. 117-394, the House Appropriations Committee
activities aimed at early deployment, including
reiterated that DOE should coordinate hydrogen and fuel
demonstrations of fuel cells in applications such as shore
cell programs across DOE offices and specifically between
power or emergency response ground vehicles. DOE’s
HFTO and the Vehicle Technologies Office.
HFTO has a coordinating role within the federal
government as a whole. Congress has directed agencies to
IIJA required that DOE consider a number of goals (e.g.,
cooperate on hydrogen and fuel cell activities and, in EPAct
long-term employment) for the $8 billion Regional Clean
(§806), directed the President to create, and DOE to lead,
Hydrogen Hubs and established timetables for DOE’s
an interagency working group; the group continues to meet
implementation of these hubs. How and to what extent
monthly. The language in the IIJA (§40314) that required
DOE implements these goals and how quickly it can make
the Secretary of Energy to develop the draft National Clean
the awards may be of continued interest to Congress. IIJA
Hydrogen Strategy and Roadmap, also required, among
further set a target for the cost of hydrogen that is to be
other purposes, that the report identify points of interaction
achieved roughly five years earlier—but at higher cost—
with federal agencies involved with hydrogen and clarify
than DOE’s own Hydrogen Shot cost goal. How these two
the responsibilities of those agencies.
goals align in 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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Department of Energy Funding for Hydrogen and Fuel Cell Technology Programs FY2022

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