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Jeff Kupfer: Hydrogen future begins in Western Pa. — if we seize it

Jeff Kupfer
8493546_web1_shapirospeak
AP
Gov. Josh Shapiro touts federal investment in hydrogen hubs in Pennsylvania alongside Philadelphia union leaders in May 2024.

Western Pennsylvania helped build America’s energy backbone. Now, we stand at the edge of another turning point – one where the region can once again lead, this time by investing in clean hydrogen technologies that power the future and support our workers, manufacturers, or communities.

Let’s be clear: This isn’t about abandoning what has worked. Rather, it is about building on the region’s deep industrial roots and skilled workforce.

Western Pennsylvania’s legacy in coal, steel and natural gas is a foundation that’s core to this new opportunity. The region already has the infrastructure that other areas can only dream of. Combine that with proximity to industrial centers and growing experience in carbon capture, and it is positioned to become a national powerhouse for clean hydrogen.

And the clean hydrogen production tax credit (45V) is key to making that possible.

A recent webinar hosted by ConservAmerica discussed how clean energy tax credits like 45Q — the carbon sequestration credit — and 45V will generate nearly $600 billion in private investment over the next decade, along with hundreds of thousands of high-quality jobs in energy, construction, and manufacturing. These are skilled, high-wage American jobs that align with the values of energy security, economic growth and technological leadership.

These tax credits support projects that reduce emissions in real, measurable ways. If implemented correctly, they won’t dictate how one gets there; they’ll reward outcomes. That’s the kind of market-based approach that fits Pennsylvania values: realistic, performance-driven, and rooted in local opportunity.

This isn’t theoretical. A year and a half ago, the federal government awarded a hydrogen hub to the region, recognizing the immense potential for hydrogen production tied to our natural gas resources. Now, with 45V as a catalyst, and with a practical implementation of the credit, the area can attract billions in private investment, create good-paying jobs, and build new industries that serve both domestic and international markets.

But there is no guarantee that 45V will remain in place. Congress is currently debating the future of tax cuts and tax credits, with the hydrogen production tax credit caught squarely in the middle of the debate. Losing 45V will risk tying the hands of developers who are ready to get to work and losing out to foreign adversaries in the space. Consider how China’s National Energy Administration directed its provinces to “steadily develop” green hydrogen production and sustainable fuel facilities.

The loss of 45V wouldn’t just impact Pennsylvania, but the country at large. It does no good to theorize about the benefits of clean hydrogen while projects stay on the drawing board. They need to be built, scaled, and delivered by people who know how to build energy systems — that’s the people of Western Pennsylvania.

Local communities are full of engineers, welders, technicians and energy workers who are ready to take on this challenge. They have been doing this for more than a century. What we need now is for federal policy to remain stable and to adopt rules that promote growth, innovation and practical deployment of hydrogen technologies.

Let’s not lose momentum. The world is moving quickly, and countries like China are racing to corner the clean hydrogen market. The U.S. has the chance to lead but that leadership needs to be built from the ground up, in regions that know energy. Regions like Western Pennsylvania.

The hydrogen production tax credit is a signal to investors, to innovators and to workers that the United States is serious about building a cleaner, stronger energy future right here at home. Let’s make sure we get it right, and let’s make sure Western Pennsylvania is leading the way.

Jeff Kupfer is president of ConservAmerica.

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Categories: Featured Commentary | Opinion
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