To lower hydrogen storage infrastructure costs, governments can leverage a multi-pronged policy approach focused on financial incentives, collaborative frameworks, and regulatory support:
1. Enhanced Tax Credits and Direct Funding
The U.S. Energy Storage Credit under the Inflation Reduction Act (IRA) provides tax incentives for hydrogen storage until 2025, which could be extended and expanded to cover advanced storage technologies like cryogenic or metal hydride systems. Direct grants for demonstration projects—as seen in the Hydrogen Shot initiative—can de-risk early-stage deployments.
2. Subsidized Construction and Operational Costs
Adopting subsidy models similar to those for hydrogen refueling stations could streamline storage infrastructure development:
- Construction subsidies: Cover 30–80% of upfront costs, as practiced in China and Japan for refueling stations.
- Operational subsidies: Offset ongoing expenses (e.g., compression, maintenance) to improve project viability.
3. Public-Private Hydrogen Hubs
The U.S. $50 billion hydrogen hub program demonstrates how state-industry collaboration pools resources, shares technical expertise, and scales infrastructure. Expanding such models globally can reduce per-unit costs through shared R&D and optimized supply chains.
4. Regulatory Support and Standards
- Streamlined permitting: Fast-track approvals for storage facilities to reduce project timelines.
- Harmonized safety standards: Unified regulations for storage materials (e.g., carbon fiber tanks) can lower compliance costs across jurisdictions.
5. Research and Development Incentives
Targeted R&D tax credits or grants for innovations in high-density storage (e.g., liquid organic hydrogen carriers) could accelerate cost reductions, mirroring the IRA’s focus on technology demonstration.
By integrating these measures, governments can address both capital and operational cost barriers, accelerating affordable hydrogen storage deployment.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/how-can-government-policies-and-subsidies-further-lower-the-cost-of-hydrogen-storage-infrastructure/
