Will Trumps LNG push help prime a hydrogen economy?
The Trump Administration has moved to expand U.S. liquefied natural gas (LNG) exports, a shift that could indirectly support hydrogen infrastructure. A new executive order directs the Department of Energy to lift restrictions on LNG exports and calls for a reevaluation of environmental reviews for deep water LNG port projects. These measures aim to counteract Biden-era policies favoring electric vehicles and renewables, which the administration argues have distorted the market.
Expanding LNG exports could accelerate domestic LNG adoption, particularly in the heavy-duty vehicle sector. This move aligns with existing growth trends, as U.S. LNG export capacity was already set to more than double by 2028 under Biden. While not a stated goal, an expanded LNG supply chain could also facilitate hydrogen development, complementing the $8 billion hydrogen hub initiative launched under the previous administration.
The approach to hydrogen production is expected to shift under Trump, with a stronger focus on “blue” hydrogen—produced from natural gas with carbon capture—rather than “green” hydrogen, which relies on renewable-powered electrolysis. This could lead to increased hydrogen availability but with a higher environmental footprint compared to Biden’s push for cleaner production methods.
Green hydrogen, which generally relies on electrolysis powered by renewable energy, is eligible for tax credits outlined in 2023. However, a key uncertainty remains around tax credits for green hydrogen, which were structured to reward the lowest-emission production methods. While they may not be eliminated outright, their future is less certain under Trump, potentially reshaping investment trends in the hydrogen sector.
