Apr 8, 2025
This report was prepared by the New York State Energy Research and Development Authority (NYSERDA) with assistance from the National Renewable Energy Laboratory (NREL) and Energy and Environmental Economics, Inc. (E3).
New York State (NYS) recognizes hydrogen as a potential solution for decarbonizing its hard-to-electrify sectors, supporting the ambitious legislative goals outlined in the Climate Leadership and Community Protection Act (Climate Act). To evaluate hydrogen’s feasibility, costs, and deployment opportunities across New York State’s energy landscape, the New York State Energy and Research Development Authority (NYSERDA) collaborated with leading research institutions to conduct a comprehensive assessment, with a focus on hydrogen produced with electrolysis and water, using renewable and nuclear energy.
Hydrogen demand could reach 1.1 million metric tons (MT) annually by 2050, accounting for 11.4% of the State’s total energy market. However, the high levelized cost of hydrogen presents a major barrier to widespread adoption. Among cost components, hydrogen production from renewable electricity represents the most significant part, contributing more than half of total hydrogen costs, outpacing storage and distribution expenses. The findings highlighted cost barriers across all examined sectors, including high-temperature industrial applications and fuel-cell electric vehicles (FCEVs). The technoeconomic landscape suggests addressing these challenges requires targeted innovation in electrolyzer efficiency, pipeline infrastructure, geologic storage solutions, and hydrogen-compatible end-use technologies.
This assessment provides a detailed framework for hydrogen development in New York State, identifying critical research priorities and deployment pathways that could position hydrogen as a complementary solution to electrification in achieving the State’s ambitious climate objectives.
View the full assessment here: