The Hydrogen Energy Storage Revolution: Reshaping the US Energy Sector

Hydrogen Energy Storage Market

The US hydrogen energy storage market is an emerging sector within the global market that is expected to grow significantly due to the rise in fuel cell adoption, strict regulations related to emission control, and the inclination toward cleaner fuels. The US government aims to target a nationwide 100% green energy economy and achieve net‐zero emissions by 2050. For instance, the Government of California will invest USD 20 million annually until 100 public hydrogen refueling stations (HRS) are in operation. The state of California targets to install 200 HRS by 2025 and 1,000 HRS and 1,000,000 (Fuel Cell Electric Vehicles) FCEVs by 2030. Based on surveys conducted with auto manufacturers, the California Air Resources Board forecasts an installation of 27,000 FCEVs by 2023 and 48,900 by 2026 in California. Therefore, an increase in FCEVs and HRS is expected to fuel the growth of the hydrogen energy storage market in the US.

According to a new market research report, The global hydrogen energy storage market is estimated to grow from USD 11.4 billion in 2023 to USD 196.8 billion by 2028; it is expected to record a CAGR of 76.8% during the forecast period.

Further, the US Government is further implementing policies that are being framed to encourage the research and usage of clean fuels, such as hydrogen, for various energy needs. For instance, The Clean Air Act amendments and related fuel regulations in the US aim to reduce the sulfur content and other harmful contents in the atmosphere. The US Department of Energy’s Hydrogen Program, led by the Hydrogen and Fuel Cell Technologies Office (HFTO) of the Office of Energy Efficiency and Renewable Energy (EERE), conducts research and development on hydrogen production, delivery, infrastructure, and storage for use in transportation, industry, and stationary power applications. The program includes technological validation, manufacturing, analysis, system design and integration, safety, codes and standards, education, and workforce development. All such factors are anticipated to drive the market growth for hydrogen energy storage in the US in the near future.  

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With the rise in several promising projects and various R&D studies, hydrogen energy storage has begun to demonstrate significant potential in the US. SoCalGas, a natural gas company based in Southern California, has been involved in hydrogen energy storage projects. In July 2022, SoCalGas partnered with GKN Hydrogen and the US National Renewable Energy Laboratory (NREL) to demonstrate green hydrogen as a megawatt-scale clean energy storage resource. The US Department of Energy funded USD 1.7 million, and SoCalGas funded USD 400,000 for the project. This project will connect two of GKN Hydrogen’s HY2MEGA hydrogen storage subsystems with 500 kg of hydrogen storage capacity to an electrolyzer and fuel cell at NREL’s Flatirons Campus near Boulder, Colorado. Hence, upcoming hydrogen storage projects and investments are expected to drive the hydrogen energy storage market.

There are several players headquartered in the US that offer hydrogen energy storage, such as, Plug Power Inc., FuelCell Energy Inc., Energy Vault, Inc., Power to Hydrogen (P2H2), Ergenics Corp., etc., for various applications such as stationary power and transportation. To establish a strong product portfolio for hydrogen energy storage, these companies adopt strategic developments such as collaboration, agreements, and contracts among others. FuelCell Energy, Inc. is one of the key fuel cell manufacturing and sales companies. The company offers solid oxide hydrogen-based storage solutions. The company invests heavily in research & development. It invested nearly 27% of its revenue in R&D activities to strengthen its presence in the market. Similarly, Plug Power Inc. is also one of the prominent American companies that specializes in providing hydrogen fuel cell solutions. The company provides storage solutions for hydrogen energy generated using renewable energy. These storage solutions are used for various applications, such as industrial and electric utilities. In October 2021, Plug Power Inc. acquired Applied Cryo Technologies, Inc. (ACT), a manufacturer of specialty cryogenic equipment. The acquisition of ACT adds significant capabilities, expertise, and technologies to Plug Power Inc. that will help the company expand the green hydrogen ecosystem. Such strategic partnerships will boost the hydrogen energy storage market in the US.  

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The expansion of hydrogen energy storage in the US market is being driven further by improvements and advancements in energy storage technology and their incorporation into fuel cell vehicle systems, and data centers for power backup application. The primary advantage of using hydrogen energy storage is that a large amount of energy can be stored for an extended period. It is used by industries, commercial end users, and utilities.