Who’s Powering America’s Hydrogen Rush?

CPS Energy, Modern Hydrogen, and Plug Power drive new hydrogen projects as U.S. sector gains scale

17 Oct 2025

The U.S. hydrogen industry is entering a new phase of development as utilities and clean energy companies move from pilot projects to large-scale deployment. Partnerships between CPS Energy, Modern Hydrogen, and Plug Power highlight growing confidence that hydrogen can play a broader role in the nation’s energy transition.

CPS Energy, the San Antonio utility, has partnered with Modern Hydrogen to test on-site hydrogen production from natural gas while capturing solid carbon instead of emitting CO₂. Producing hydrogen close to consumption points could lower transport costs and emissions, offering a potential model for distributed generation if the pilot proves effective.

Plug Power is also expanding its network, extending supply contracts and planning more than 40 new sites in 2025. The expansion reflects expectations that hydrogen infrastructure will soon support a wider range of commercial and transport applications, though many sites remain under construction or in early operation.

Primary Hydrogen, meanwhile, has entered the U.S. market with the acquisition of the Dove Creek natural hydrogen project. The deal highlights growing interest in naturally occurring “white” hydrogen as a complement to more established production methods such as electrolysis and reforming.

Industry analysts estimate that more than $110bn has been committed to roughly 500 hydrogen projects worldwide, representing about 6mn tonnes of planned annual capacity. While many remain in the design or permitting phase, the volume of investment suggests the sector is preparing for scaled deployment.

The CPS-Modern Hydrogen trial could shape how utilities integrate hydrogen into gas networks by combining local generation with carbon capture. Plug Power’s site expansion will test logistics and storage capabilities, while Primary Hydrogen’s entry adds diversity to U.S. feedstock sources.

Policy uncertainty, financing limits, and high production costs still pose risks. Yet the sector’s direction is clear: hydrogen development in the U.S. is shifting from concept to construction, setting the stage for broader commercial use in the coming decade.