Hydrogen is emerging as a critical component in the global energy transition, providing a low-carbon alternative for sectors such as industry and transportation. This paper aims to comprehensively address water usage in hydrogen production by exploring the water demands of different production methods and their implications for water management, particularly in Texas. Key variables influencing water consumption are identified, and potential water demands under different hydrogen market scenarios are estimated. Using spatial analysis, regions where hydrogen production may stress local water resources are identified, alongside policy recommendations for sustainable water use.

This paper delves into the critical role of tax credits, specifically Sections 45Q and 45V, in the financing and economic feasibility of low-carbon-intensity hydrogen projects, with a focus on natural-gas-based hydrogen production plants integrated with carbon capture and storage (CCS). This study covers the current clean energy landscape, underscoring the importance of low-carbon hydrogen as a key component in the transition to a sustainable energy future, and then explicates the mechanics of the 45Q and 45V tax credits, illustrating their direct impact on enhancing the economic attractiveness of such projects through a detailed net present value (NPV) model analysis. Our analysis reveals that the application of 45Q and 45V tax credits significantly reduces the levelized cost of hydrogen production, with scenarios indicating a reduction in cost ranging from USD 0.41/kg to USD 0.81/kg of hydrogen. Specifically, the 45Q tax credit demonstrates a slightly more advantageous impact on reducing costs compared to the 45V tax credit, underpinning the critical role of these fiscal measures in enhancing project returns and feasibility. Furthermore, this paper addresses the inherent limitations of utilizing tax credits, primarily the challenge posed by the mismatch between the scale of tax credits and the tax liability of the project developers. The concept and role of tax equity investments are discussed in response to this challenge. These findings contribute to the broader dialogue on the financing of sustainable energy projects, providing valuable insights for policymakers, investors, and developers in the hydrogen energy sector. By quantifying the economic benefits of tax credits and elucidating the role of tax equity investments, our research supports informed decision-making and strategic planning in the pursuit of a sustainable energy future.

As carbon capture and storage (CCS) technologies mature, the concept of a low-carbon or net-zero-carbon economy becomes more and more feasible. While many chemical and energy products do not contain carbon in their compounds, the upstream production process does. An added CCS module allows the removal of carbon emissions from the production process, which expands the value chain. This paper focuses on one of such commodities—low-carbon-intensity ammonia (LCIA). Even though ammonia is carbon-free in its final product, it is commonly made from natural gas, and the production process could generate significant carbon emissions. The idea of LCIA is to reduce the carbon footprint of the ammonia production process (e.g., blue ammonia) or eliminate carbon from the production process (e.g., green ammonia via electrolysis) so that the entire supply chain is decarbonized. The goal of this paper is two-fold. We first explore the US domestic market and the international market for LCIA. We then discuss relevant federal and local policies that could help grow markets for LCIA. The agricultural sector will be the center of the discussion, which consumes an estimated 70–90% of the global ammonia supply as fertilizers. The paper also examines other potential uses of LCIA, such as alternative fuels for decarbonizing agricultural machinery and transportation sectors. Finally, we argue that developing a comprehensive LCIA value chain, supported by dedicated policy measures and broad stakeholder engagement, is critical for materializing the potential of LCIA in contributing to a climate-resilient and sustainable economy.