One of the central tenets of the Biden administration’s energy policy is the pursuit of “green” hydrogen, defined as hydrogen manufactured with zero carbon emissions.
This push has involved $7 billion dollars in subsidies for the creation of Regional Clean Hydrogen Hubs as well as significant tax breaks for hydrogen production through the Inflation Reduction Act.
While the administration touts this as beneficial, the reality is that using hydrogen as an energy source makes no economic sense.
There are two reasons this scheme won’t work.
First, we cannot create usable energy out of thin air. Instead, we expend energy to obtain energy resources — drilling for oil and gas, mining coal — to convert it to forms we can use for things like generating electricity or powering your car.
This works because the conversion process uses much less energy than those resources provide.
We would never refine crude oil into gasoline if two gallons’ worth of energy were required to produce every gallon.
But that’s precisely the problem with green hydrogen, which must be manufactured.
Continue reading the entire piece here at the New York Post
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Jonathan A. Lesser, PhD, is the president of Continental Economics, an economic consulting firm, and an adjunct fellow with the Manhattan Institute. Based on a recent issue brief.
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