Trump’s One Big Beautiful Bill Act Offers Certainty for U.S. Hydrogen — But Green Energy Still in Question

The U.S. hydrogen industry has gained long-awaited policy clarity following the passage of the One Big Beautiful Bill Act (OBBBA) on July 4, 2025. While the bill is seen as a relief for many in the clean hydrogen sector, its limited support for green hydrogen and renewable energy development could hinder future growth.

Compared to earlier drafts, the final version of the bill is far less damaging to the hydrogen economy, softening concerns raised by the industry. However, it offers significantly less support than the Inflation Reduction Act (IRA) and is unlikely to spark the same scale of investment in zero-emission hydrogen production.

One bright spot for developers is the retention of the 45Q tax credit, which provides $85 per metric ton of CO₂ captured and stored. This credit supports blue hydrogen projects, including those using carbon capture and storage (CCS) for enhanced oil recovery or geological sequestration.

“Keeping 45Q intact gives blue hydrogen a path forward,” said an energy analyst. “But for green hydrogen, the lack of renewable energy support is a major gap.”

With no clear roadmap for scaling clean electricity to power electrolytic hydrogen production, experts warn that the U.S. may fall short of its net-zero goals and lose ground in the global hydrogen race.

About the U.S. Hydrogen Landscape

The OBBBA provides stability for natural gas-based hydrogen projects but leaves a policy gap for green hydrogen development, raising questions about how the U.S. will meet growing clean energy demand in the years ahead.