Hydrogen Plans Wobble, But Industry Stays the Course

DOE cancellations unsettle hydrogen plans, but firms like Linde and Chevron press ahead

30 Oct 2025

The U.S. hydrogen industry is adjusting course after the Department of Energy announced on Oct. 2 that it would withdraw more than $7.5 billion in clean-energy awards, including funding for two regional hydrogen hubs in California and the Pacific Northwest. The move halts several high-profile efforts but has not stalled the broader transition toward hydrogen as a clean fuel. Companies with ongoing projects are now reevaluating their funding strategies while keeping existing developments on track.

The cuts affect part of the DOE’s $7 billion regional hub program, launched to link hydrogen producers, storage facilities, and transport networks across multiple states. Several other hubs remain active. Analysts said the decision reflects growing federal caution over large-scale energy grants and a shifting focus toward financial self-sufficiency in clean-tech ventures.

“Developers are learning to balance public incentives with commercial viability,” said an analyst at the Clean Energy Leadership Council. “It’s less about replacing grants and more about proving these projects can stand on their own.”

Companies with established hydrogen portfolios have signaled continuity. Linde plc is completing construction of a 35-megawatt green hydrogen plant in Niagara Falls, New York, expected to begin operations in 2025. Chevron’s ACES Delta joint venture in Utah, one of the nation’s largest hydrogen storage facilities, continues to serve regional utilities. Air Liquide, a partner in six of the seven remaining U.S. hubs, is expanding its infrastructure partnerships with fueling station operators to support heavy-duty transport.

These efforts underscore the durability of public-private collaboration in building the hydrogen economy. While investors await clearer policy direction, firms are focused on delivering projects already under construction and securing long-term offtake agreements to stabilize demand as production ramps up.

Persistent challenges, among them rising construction costs and competition for renewable power, remain. Yet the industry’s steady momentum points to a maturing phase, defined less by federal largesse than by commercially grounded growth. The outcome, analysts suggest, could mark a more resilient path for clean hydrogen in the years ahead.