Energy Strategies for a Complex World: The Critical Role of Hydrogen

As the global energy landscape continues to evolve, finding the right strategies to ensure security, affordability, and sustainability is more complex than ever. This challenge is also reflected in the theme of this week’s CERAWeek event in Houston: energy strategies for a complex world.

Geopolitical tensions, shifting economic conditions, and the need to diversify energy sources demand an approach that is both resilient and adaptable. Energy diversification is essential to the future of U.S. energy security, economic growth, and sustainability. This is a core focus of Topsoe’s business and includes low-carbon and renewable hydrogen, hydrogen derivatives like ammonia and methanol, and renewable fuels such as SAF. 

With the right policies in place, this can unlock tremendous economic benefits, promote energy diversification and resilience, and reinforce America’s leadership in the global energy transition.

Achieving this requires prioritizing both efficient, reliable low-carbon hydrogen production today and the renewable hydrogen innovations that will power a more sustainable tomorrow.

Topsoe is at the forefront of this transformation. Our solutions produce every third hydrogen molecule globally.

Our catalysts are enabling low-carbon hydrogen production, including ExxonMobil’s announced groundbreaking facility in Baytown, Texas, which will use Topsoe’s SynCOR™ hydrogen technology. Set to produce 1 billion cubic feet of hydrogen per day, it will be the largest hydrogen project in the world, pending a final investment decision.

At the same time, we are advancing the development of our solid oxide electrolyzer cell (SOEC) technology to accelerate renewable hydrogen production.

Our newly constructed  SOEC factory  in Herning, Denmark—the largest such facility in the European Union—will be operational this spring. This factory is supported by a EUR 94 million grant from the EU Innovation Fund. With an initial capacity of 500 megawatts and room to scale further, this facility represents Topsoe’s largest-ever investment in renewable hydrogen technology.

This new technology is also being utilized by innovative American companies, like First Ammonia at their announced Port of Victoria, Texas, renewable ammonia production facility. 

Why Hydrogen Is Key

So why is an all-of-the-above hydrogen energy production so important? Some key points:

Energy Security

1. Hydrogen can be produced from a variety of feedstocks, including natural gas, renewable biogas, and electricity, or sourced from naturally occurring deposits.
2. This enables the use of domestic energy resources, creating jobs and strengthening U.S. energy security while also advancing decarbonization in transportation, power generation, and industrial sectors.

Economic Benefits

1. The hydrogen industry has immense potential to drive domestic economic growth, particularly in U.S. manufacturing.
2. According to McKinsey, with the right policies in place, the hydrogen industry could generate 700,000 jobs by 2030 and contribute $140 billion in revenue.
3. Many hydrogen jobs align with existing oil and gas workforce skills, making the transition seamless for workers in traditional energy sectors. 

Global Leadership

1. The international hydrogen market is expanding rapidly, and the U.S. has an opportunity to solidify its position as a global leader in hydrogen production.
2. The U.S. Department of Energy projects that by 2050, annual clean hydrogen production will reach 50 million metric tons.
3. Without strategic investments and policy certainty, the U.S. risks losing its competitive edge to countries like China, which are pouring billions into hydrogen development.

Policies Supporting Hydrogen

Given what is at stake, it is critical that the hydrogen industry receives the support needed to scale up manufacturing and deployment nationwide.

That is why Topsoe joined more than 100 other companies and industry associations in sending a letter to the congressional leadership urging them to preserve the federal Section 45V clean hydrogen production tax credit.

With supportive policies like 45V, we can accelerate the deployment of hydrogen, create economic opportunities, and strengthen the resilience of the energy system. At Topsoe, we are committed to driving this progress in collaboration with our U.S. customers—because a secure, sustainable, and economically vibrant future depends on it.