Don’t let China dominate the hydrogen future

The race for global leadership in hydrogen is underway—and the United States is dangerously close to falling behind.

China is making a massive, coordinated push to control the hydrogen supply chain and dominate the next era of energy. In 2024 alone, Beijing committed nearly $680 billion to clean energy investments—almost as much as the U.S. and European Union combined, according to the International Energy Agency (IEA).

Back in 2020, China held less than 10% of global manufacturing capacity. Today, it commands over 60%. In March, Beijing formally directed its provinces to “steadily develop” hydrogen and sustainable fuel infrastructure—laying out a clear, coordinated strategy to corner the hydrogen market, just as it did with solar. China’s hydrogen electrolyzer orders in the first four months of 2025 have surpassed the total orders placed throughout 2024.

It’s incumbent that the U.S. lead with a strategy of its own—and that starts by preserving the Clean Hydrogen Production Tax Credit, also known has 45V. Doing so will not only keep billions in already-announced investments on American soil—it will unlock many more. A recent study from CRES Forum projects that once operational, blue hydrogen projects currently in development could support 62,200 jobs per year across the country between 2025 and 2035 and generate more than $12 billion in annual GDP. This is more than just energy policy. It’s industrial strategy.

And it’s crucial, as hydrogen is a highly versatile energy resource—used as fuel and feedstock across the U.S. economy, storable over long periods and capable of delivering energy wherever and whenever it’s needed. If investments are rescinded, those dollars, technologies and jobs will go elsewhere.

That’s why it’s important to expand global demand—from the European Union to Japan and South Korea—and it’s creating new market opportunities for U.S. hydrogen exports. Hydrogen gives traditional energy sectors a path to grow beyond conventional markets and diversify our energy economy. With smart policy, the U.S. can leverage its natural resources like natural gas, increase domestic manufacturing, expand exports and secure its global energy leadership position.

Hydrogen also strengthens supply chains here at home. It can be transported via pipeline or ship, stored in multiple forms and converted to energy through engines, turbines and fuel cells. It supports economic growth across industries—from chemicals and steel to food, pharma and heavy-duty transport—and was designed to jumpstart our domestic hydrogen industry by supporting U.S.-based manufacturing, infrastructure buildout and job creation. If implemented effectively, 45V can ignite a hydrogen economy that is cleaner, more secure and globally competitive. We still have the resources, ingenuity, and policy tools to lead—but only if we act. That means getting 45V right, with incentives that drive deployment now.

This is a moment. If we hesitate, we won’t just fall behind. We’ll be locked out of one of the most consequential energy markets of the 21st century—dependent on foreign supply chains in a world where energy equals power. The decisions we make today will determine whether the U.S. leads—or follows—in the global hydrogen economy. Let’s lead. Let’s compete. Let’s not get left behind.

Heather Reams is President Citizens for Responsible Energy Solutions (CRES).