Barriers to renewable hydrogen deployment
What are the major barriers to the launch of a renewable hydrogen industry in the United States?
Lack of appropriate incentives or regulations to reduce carbon emissions, lack of information about the nascent opportunity, and tariffs recognizing the value of interruptible loads.
What are the major barriers to the launch of a renewable hydrogen industry in the Pacific Northwest?
Arguably the biggest barrier to renewable hydrogen development is lack of widespread understanding of the current reality of the industry and the opportunity it presents. Virtually no electrification plans anticipate a major role for renewable hydrogen as of early 2021.
Several policies would help launch the renewable hydrogen industry in the Northwest, perhaps chief among them:
- Utility tariffs for flexible loads that offer reduced rates or adders that recognize the services electrolyzers can offer to the system (e.g., load balancing, reserves, and wholesale price-shopping);
- Incentives or requirements for utilities to participate in electrolyzer projects;
- Carbon emission reduction targets or carbon taxes;
- General understanding of the opportunity that exists today.