Hydrogen Steps on the Gas as Policy and Partnerships Align

Air Liquide and FirstElement Fuel grow U.S. hydrogen networks as new policies spur momentum

23 Oct 2025

Hydrogen is gaining traction in the clean energy transition, propelled by new public investment, corporate collaboration, and infrastructure growth. Once dominated by pilot projects, the industry is now laying the groundwork for a more durable market, with signs of steady, if measured, momentum.

In the United States, partnerships between global producers and regional fuel providers are multiplying. Air Liquide’s collaboration with FirstElement Fuel is expanding refueling capacity in California and other markets, advancing hydrogen’s role in both passenger and heavy-duty transport. The effort aligns with state and federal policies designed to cut emissions and accelerate access to low-carbon fuels.

California’s recent update to its Low Carbon Fuel Standard reaffirmed support for hydrogen while refining how cleaner fuels are produced and tracked. The revised framework emphasizes accountability and lifecycle emissions monitoring, even as it stops short of hydrogen-specific verification rules. Developers are responding by investing in renewable sourcing and digital tracking systems to stay competitive.

At the federal level, the Department of Energy’s hydrogen hub initiative continues to define the sector’s direction. The program channels billions of dollars toward regional ecosystems that integrate production, storage, and end use. These hubs are meant to prove commercial viability, attract private capital, and encourage companies to share infrastructure and expertise.

Analysts say that while large-scale mergers remain limited, partnerships are accelerating innovation. Companies are prioritizing cost reduction, electrolyzer efficiency, and supply chain integration over consolidation.

Challenges persist, from infrastructure costs to verification standards and uncertain demand timelines. Yet growing policy clarity and investor confidence are fueling cautious optimism. “The hydrogen sector is evolving from concept to execution,” said Daniel Kim, an energy strategist at CleanTech Insights. “The focus now is on proving scalability and reliability.”

Momentum may be gradual, but it is real. As alliances deepen and incentives align, hydrogen is advancing from demonstration projects toward a central role in the clean energy economy, a shift that could help define industrial growth and decarbonization in the years ahead.