DOE Hydrogen Program Appropriations: FY2025

DOE Hydrogen Program Appropriations: FY2025

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Updated July 22, 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 Budgetary Resources
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 (FECM)—were
(EERE), with participation by other DOE offices.
responsible for executing over 80% of DOE’s budget
authority on hydrogen and fuel cells from the FY2024
A future “hydrogen economy” using hydrogen as an energy
annual appropriation. The Office of Nuclear Energy and the
carrier and fuel could offer an alternative to today’s
Office of Science received smaller percentages. In FY2024,
economy, with its prevalent combustion of fossil fuels.
the joint explanatory statement accompanying the
Initially thought of as a new technology for personal
Consolidated Appropriations Act, 2024 (P.L. 118-42)
mobility services (e.g., cars) and high-value applications
directed $396.0 million to the hydrogen crosscutting
such as provision of electric power during space flight,
initiative. DOE anticipates that by the end of 2024, it will
hydrogen is also receiving attention for industrial processes,
announce funding for hydrogen by ARPA-E (Advanced
heavy vehicles, forklifts, portable power, and buffering and
Research Projects 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 dol ars)
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 annual y 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. ARPA-E would add to the above.
Hydrogen Strategy and Roadmap envisages 10 million
metric tons of new production of hydrogen per year by
For FY2025, the President’s budget request for the DOE
2030, further stipulated to be “clean hydrogen” as defined
hydrogen crosscutting initiative was $377.2 million (Figure
in statute and DOE regulation. The DOE May 2024 Multi-
1). The funding for HFTO makes up the majority of
Year Program Plan (MYPP) identifies challenges to
funding from EERE in Figure 1, as well as the majority of
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link to page 1 DOE Hydrogen Program Appropriations: FY2025
EERE prior-year appropriations. The House Appropriations
Treasury Department published a notice of proposed
Committee reported the Energy and Water Development
rulemaking and notice of public hearing on December 26,
and Related Agencies Appropriations Act, 2025 (H.R.
2023, for implementing 45V. The IRA had required the use
8997; H.Rept. 118-580) on July 11, 2024, with funding for
of the Greenhouse Gases, Regulated Emissions, and Energy
DOE hydrogen programs. The committee report
Use in Technologies (GREET) model to determine whether
recommended $124.1 million for the Office of Hydrogen
the lifecycle greenhouse gas emissions of a hydrogen
and Fuel Cell Technologies, part of the EERE segment of
production facility qualify for a tax credit. In H.Rept. 118-
the hydrogen crosscutting initiative, versus a DOE request
580, the House Appropriations Committee directed DOE to
of $170.0 million. The report further recommended a total
ensure that any changes to the GREET model do not treat
of $111.0 million for the three activities in FECM tracked
feedstocks differently, specifically mentioning natural gas.
in the hydrogen crosscutting initiative versus a request of
Further information is available in CRS In Focus IF12602,
$110.4 million (Figure 1).
The Clean Hydrogen Production Credit: How the
Incentives are Structured, by Nicholas E. Buffie and Martin
In addition to annual appropriations, DOE received
C. Offutt.
hydrogen-related advance appropriations from the IIJA for
FY2022 through FY2026. The IIJA appropriated $8 billion
Recent Developments
for Regional Clean Hydrogen Hubs as advance
On October 13, 2023, President Biden and Energy
appropriations of $1.6 billion for each of FY2022 through
Secretary Granholm announced seven grant awards for the
FY2026. The IIJA also appropriated funds for two
Regional Clean Hydrogen Hubs (IIJA §40314) to receive
programs—Clean Hydrogen Manufacturing Recycling
total funding of up to $7 billion. On January 17, 2024, DOE
Research, Development, and Demonstration; and Clean
announced that it had selected a consortium to receive
Hydrogen Electrolysis—in amounts of $300 million,
$1 billion for a Demand-Side Support Initiative as part of
combined, for each of FY2022 through FY2026. In an
the Regional Clean Hydrogen Hubs.
apparent reference to these two programs, the House
Appropriations Committee, in H.Rept. 118-580, directed
On February 8, 2024, ARPA-E announced the awarding of
DOE to apply $205 million of prior-year balances from
$20.0 million of FY2023 funds for geologically sourced
“clean hydrogen electrolysis and clean hydrogen
hydrogen. ARPA-E also announced the awarding of funds
manufacturing” to the EERE account activities for FY2025.
to Argonne National Laboratory to expand GREET to
include additional pathways for manufacturing hydrogen.
Where DOE Spends the Money
DOE’s Hydrogen Program awards grants, contracts, and
On March 13, 2024, DOE announced funding for 52
cooperative agreements to investigators at universities, at
projects in the first $750 million in funding for Clean
national laboratories, and in industry. This supports over
Hydrogen Manufacturing and Recycling Research,
400 projects. These include R&D focused on the hardware,
Development, and Demonstration; and Clean Hydrogen
such as the fuel cell, for a hydrogen economy.
Electrolysis.
R&D is intended to reduce cost and improve performance
Congressional Considerations
of production and end-use technology and other parts of the
H.Rept. 118-580 directed that DOE coordinate hydrogen
hydrogen value chain. The projects also include work at
and fuel cell programs across DOE offices to maximize the
higher levels of integration, such as to validate first-of-a-
effectiveness of investments. S.Rept. 118-72, which the
kind systems, reduce technological risk, and address the
joint explanatory statement to the Consolidated
other aspects of a hydrogen economy (e.g., safety, codes
Appropriations Act, 2024 (P.L. 118-42) incorporated by
and standards, and workforce development). H.Rept. 118-
reference, noted the number of coordination mechanisms,
580 encouraged DOE to establish pilot sites to simulate
such as the Hydrogen Shot discussed above, and directed
blending of hydrogen into natural gas supply networks, a
DOE to simplify and consolidate these into one function.
potential application of hydrogen for domestic use. H.Rept.
118-580 directed DOE to conduct research on using liquid
Congress continues to be interested in certain hydrogen
hydrogen as an energy storage medium on electrical grids.
topics. One topic is the 45V tax credit and how much of it
can be claimed for the Regional Clean Hydrogen Hubs, as
Hydrogen Programs at Non-DOE Federal Agencies
discussed in the March 20, 2024, House Appropriations
DOE’s HFTO has a coordinating role for hydrogen
Subcommittee on Energy and Water Development’s
activities, including those of several other agencies—the
Hearing on the Fiscal Year 2025 Budget Request for DOE.
Department of the Army, National Aeronautics and Space
Another topic is the development and update of GREET,
Administration, and Department of the Navy, among others.
which could inform adjustments to project eligibility for the
DOE estimates that, for FY2022 and FY2023 combined,
45V credit and at what dollar level.
projects funded by non-DOE agencies totaled over $70.0
million, up roughly $30.0 million from combined FY2019
A final topic is how and to what extent DOE considers the
and FY2020. The projects range from basic research on fuel
IIJA-required goals for the Regional Clean Hydrogen Hubs
cells to activities aimed at early deployment.
(e.g., long-term employment, and feedstock and end-use
diversity) and how quickly DOE obligates IIJA funding.
P.L. 117-169, commonly known as the Inflation Reduction
Act of 2022 (IRA), created the Clean Hydrogen Production
Martin C. Offutt, Analyst in Energy Policy
Tax Credit in Internal Revenue Code Section 45V. The
IF12699
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DOE Hydrogen Program Appropriations: FY2025

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