ABSTRACT
Clean hydrogen, once subject to significant market enthusiasm, is now in the “trough of disillusionment.” Some of the explanation can be attributed to a natural selection process whereby only stronger technologies, and stronger use cases for hydrogen offtake, survive. Another major part, however, is inescapably caused by the regulatory environment. While government incentives play an important and beneficial role in stimulating growth for new renewables sectors, like clean hydrogen, they can also impede its growth if inconsistent, slow, or unstable. This chapter focuses on regulations in the United States, to provide comparative perspectives on how major jurisdictions outside of Europe have attempted to incentivise clean hydrogen investment and development. While this chapter addresses Canada, its focus is on the United States. As recently as last year, analysts expected the United States to be the market leader to clean hydrogen by 2030. Ensuing political changes have, however, called into question that prediction. This chapter sets out and analyses clean hydrogen regulation and incentives in the United States from a comparative perspective relative to the EU. While headwinds persist, the industry is still expected to undergo major growth in the United States in the coming years.
