A bill amendment from Rep. Jim Costa (D-Fresno) would begin the process of demonstrating hydrogen in heavy manufacturing.

Experts say hydrogen has the energy potential to power steel, glass, chemical, and fuel manufacturing in a more reliable way than solar or wind and in a cleaner way than coal.

The bipartisan Hydrogen for Industry Act, introduced by Costa, Eric Sorensen (D-Illinois), Marc Molinaro (R-New York), Nikki Budzinski (D-Illinois), and Don Bacon (R-Nebraska) creates a commercial-scale demonstration program for manufacturers.

“I am proud to introduce this bipartisan legislation to provide funds for demonstration projects that will showcase hydrogen’s ability to decarbonize the manufacturing, transportation, and agricultural industries,” Costa said. “Sustained investment in hydrogen is necessary to bolster U.S. energy independence and further efforts to cut greenhouse gas emissions in half by 2035.”

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Up to $400 Million in Grants for Hydrogen

The act seeks to prove hydrogen can be used in heavy industry. It opens up $1.2 billion in grants to manufacturers willing to use at least 50% hydrogen-blend fuel. The grants — up to $400 million — can go toward building new facilities capable of using hydrogen fuel or adapting existing facilities.

The bill also directs the federal agencies to study the gas’ potential.

President Joe Biden’s Infrastructure Investment and Jobs Act authorized $8 billion to develop large-scale hydrogen programs across the country.

A $24 million grant in 2023 from that program helped pay for 22 hydrogen powered buses in Fresno.

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Major Investment Required to Get Hydrogen to Manufacturers

While essential to the U.S. economy, heavy industry’s fuel needs contribute an outsized amount of greenhouse gas emissions.

MIT Technology Review estimated 20% of emissions come from the production of steel, cement and chemical production.

Producing steel requires heating furnaces to temperatures over 2,900 degrees F, which requires a level of energy more easily provided by sources such as coal. Solar’s place in heavy manufacturing is still very nascent.

Hydrogen, however, shows potential, the MIT article states.

The gas can be produced in large quantities and at scale, according to Chevron. With solar power or biogas — such as dairy digesters — hydrogen can be produced using clean energy.

Adapting billion-dollar manufacturing plants, however, takes significant investment, the MIT article states.

“A major steel mill can cost upwards of a billion dollars to build, and they usually operate for decades — so companies looking to cut emissions in the future need to invest a lot of money in new technologies,” the article states.

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