Uncertain Future for America’s Hydrogen Dreams

DOE reviews raise uncertainty for key hydrogen hubs as industry adapts

4 Dec 2025

The US hydrogen sector is preparing for a broad reshaping as the Department of Energy reviews potential changes to its national hydrogen hub programme, a process that has begun to alter expectations across the emerging clean fuel market.

The hubs were created to support regional systems for producing, storing and transporting hydrogen. But several large projects are now understood to be at risk of reduced funding, according to leaked documents and regional statements. Hubs in California, the Midwest, the Pacific Northwest and the Mid-Atlantic are among those flagged for possible cuts, representing a significant portion of the original $7bn initiative.

The uncertainty has put developers on alert, especially those planning shared pipelines, storage facilities and delivery networks. A shift in federal backing could force companies to adjust business models or move activity to regions with clearer policy support.

Industry groups have begun to adapt. A senior Plug Power executive said the sector must remain flexible and invest “where incentives remain strong”. Federal tax credits under Section 45V — worth up to $3 per kilogram of clean hydrogen — continue to underpin project economics. Analysts warn, however, that incentives alone cannot build a national market without substantial infrastructure. One energy consultant described the current moment as “a reset rather than a retreat”, pointing to continued international interest in US projects.

Some regions are pressing Washington to maintain support. Appalachian officials argue hydrogen production could deliver long-term economic gains and said reduced funding may slow progress at a critical phase. Companies with established networks, including Air Liquide, may be positioned to benefit if priorities shift, using existing assets to fill gaps left by hubs still under review.

Despite the turbulence, many developers expect the process to sharpen project focus and lead to more competitive, commercially driven plans. The sector is awaiting final DOE decisions, but expectations remain that efforts to scale clean hydrogen across the US will continue, even as the policy landscape evolves.