[Click eStock] "US to Foster 'Hydrogen Industry' Regardless of Presidential Election Results"

원본보기 아이콘

There is an analysis that the United States will foster and expand the hydrogen industry regardless of the outcome of the presidential election this November. On the 21st, Kyuheon Choi, a researcher at Shinhan Investment Corp., stated, "The alignment and virtuous cycle formation among sectors in the U.S. hydrogen economy value chain are now in full swing."

The core legal basis for fostering the U.S. hydrogen industry is the bipartisan Infrastructure Investment and Jobs Act (BIL) and the Inflation Reduction Act (IRA). Through BIL, $9.5 billion (approximately 13 trillion KRW) and through IRA, at least $13 billion (approximately 17 trillion KRW) in support measures have been prepared. Researcher Choi explained, "The U.S. Republican Party is friendly to cheap energy sources such as fossil fuels (natural gas, oil, etc.), but unlike the IRA, BIL passed the House and Senate more smoothly through bipartisan agreement, as its name suggests."

He added, "Currently, there are significant concerns that if former U.S. President Donald Trump returns to power, the growth of U.S. eco-friendly energy-related industries, including hydrogen, could slow down. However, the atmosphere within the Republican Party is also changing. Support based on the IRA for eco-friendly energy-related industries is concentrated in Republican constituencies, raising expectations that it will have positive effects on local economies (such as job creation)."

Furthermore, "Fossil fuel-based companies are also promoting clean hydrogen-related businesses based on this support. The Information Technology and Innovation Foundation (ITIF), a U.S. nonprofit public policy think tank, believes that both the Democratic and Republican parties recognize hydrogen-related technologies as one of the next-generation energy technologies," he emphasized.

From the perspective of technological hegemony competition, the U.S. cannot just watch China's 'hydrogen rise.' Researcher Choi said, "China has secured a very strong growth foundation with abundant resources (coal and other fossil fuels, renewable energy), an overwhelming domestic market size, and hydrogen production volume. Adding the Communist Party-style policy execution power, the hydrogen industry is growing at a frightening speed." He added, "The formula of 'domestic market and low-price offensive' used in the display, solar, wind, battery, and electric vehicle industries is also being applied to foster the hydrogen industry."

Meanwhile, last month in California, the Alliance for Renewable Clean Hydrogen Energy Systems (ARCHES) was officially launched. It is the first of seven U.S. clean hydrogen hubs, securing a total investment fund of $12.6 billion (approximately 17 trillion KRW), including $1.2 billion (approximately 2 trillion KRW) through BIL and $11.4 billion (approximately 15 trillion KRW) from public and private funds.

Researcher Choi said, "Clean hydrogen hubs are concepts of mega pilot projects promoted for full-scale commercialization," adding, "Through focused investments in infrastructure such as production, storage, and transportation, the alignment and virtuous cycle formation among sectors in the U.S. hydrogen economy value chain, including utilization sectors, are now in full swing."

© The Asia Business Daily(www.asiae.co.kr). All rights reserved.