Beyond Power: Where US Hydrogen Sees Its Future

Developers and suppliers look to industry and fuels as large hubs near operation

5 Jan 2026

As the US prepares to bring its first large hydrogen hubs into commercial operation, attention is beginning to shift from technical proof to how and where hydrogen demand will develop beyond electricity generation.

Projects such as the Advanced Clean Energy Storage hub in Utah are widely seen as milestones because they demonstrate hydrogen production and storage at scale. But for developers, utilities and suppliers, the next question is how reliable volumes of hydrogen can support broader markets, particularly in industry and fuels, where decarbonisation options remain limited.

Industrial users including refineries, fertiliser producers and steelmakers already consume hydrogen, mostly made from natural gas. Clean hydrogen could allow these sectors to cut emissions without redesigning entire processes, provided supply is consistent and costs fall. Analysts say large hubs may help by anchoring long-term offtake agreements that smaller projects struggled to secure.

Energy companies have increasingly framed hydrogen as part of a portfolio rather than a standalone solution. Chevron, through its New Energies unit, has pointed to hydrogen’s potential role in supporting industrial customers and future fuels, rather than focusing solely on power generation. The strategy reflects a view that demand diversity will be critical to project economics.

Equipment and technology providers are also adjusting. Manufacturers of electrolysers and turbines have emphasised flexibility, designing systems that can serve power, industrial heat and fuel applications. This approach is intended to reduce reliance on a single revenue stream and make large investments easier to finance.

Policy remains a central factor. Federal tax credits and state-level climate policies have improved the outlook for clean hydrogen, but uncertainty remains over how emissions standards and certification rules will be enforced. Developers warn that unclear regulation could delay final investment decisions for projects that depend on long-term contracts.

Transport is another potential outlet, though growth is expected to be gradual. Heavy-duty trucking, shipping and aviation fuels are often cited as longer-term opportunities, but infrastructure constraints and competing technologies mean uptake is likely to lag industrial use.

Taken together, the emergence of large hydrogen hubs marks a transition for the sector. The immediate test is no longer whether hydrogen can be produced and stored at scale, but whether stable demand can be built across multiple sectors. How quickly that happens will shape whether hydrogen becomes a niche solution or a more durable part of the US energy system.