Nuclear-assisted hydrogen production is gaining traction as a viable pathway to decarbonize hard-to-abate sectors, combining the reliability of nuclear energy with the versatility of hydrogen. Governments worldwide are implementing policy measures to accelerate its adoption, aiming to bridge the gap between pilot projects and commercial-scale deployment. This article surveys global policy frameworks, compares national strategies, and evaluates their effectiveness in fostering market growth.
The United States has been a frontrunner in supporting nuclear hydrogen through a mix of subsidies, tax incentives, and research funding. The Inflation Reduction Act includes a production tax credit for clean hydrogen, which benefits nuclear-produced hydrogen by providing up to $3 per kilogram for projects meeting stringent emissions criteria. The Department of Energy has also allocated substantial funding to advanced reactor demonstrations capable of high-temperature electrolysis, a key enabler for efficient nuclear hydrogen production. These measures have spurred private-sector interest, with several utility companies announcing partnerships to integrate nuclear plants with hydrogen facilities. However, regulatory hurdles, such as licensing delays for advanced reactors, remain a bottleneck.
In Europe, the European Union has adopted a multi-pronged approach under its Hydrogen Strategy and REPowerEU plan. The EU’s Carbon Border Adjustment Mechanism indirectly supports nuclear hydrogen by penalizing high-carbon alternatives, while the Innovation Fund has earmarked grants for nuclear-coupled electrolysis projects. France, in particular, has prioritized nuclear hydrogen in its national energy strategy, with state-owned EDF leading pilot projects to produce hydrogen from existing nuclear fleets. Despite these efforts, fragmented national policies and uneven R&D investment across member states have slowed progress. The lack of a unified hydrogen infrastructure plan also limits cross-border collaboration.
Japan’s policy framework emphasizes technological leadership, with substantial R&D funding directed toward high-temperature gas-cooled reactors (HTGRs) optimized for hydrogen production. The government’s Green Growth Strategy includes subsidies for HTGR demonstrations and partnerships with industry players like Kawasaki Heavy Industries. Japan’s approach is unique in its focus on export potential, aiming to position itself as a supplier of nuclear hydrogen technology. However, public skepticism toward nuclear power post-Fukushima has constrained domestic deployment, and the high capital costs of HTGRs remain a barrier.
China has integrated nuclear hydrogen into its broader hydrogen economy plan, leveraging state-backed enterprises to drive rapid scaling. The National Development and Reform Commission has identified nuclear hydrogen as a priority under its Medium and Long-Term Hydrogen Plan, with pilot projects already underway in Shandong and Fujian provinces. China’s policy effectiveness stems from centralized planning and access to low-cost financing, but intellectual property restrictions limit international collaboration. Additionally, the dominance of coal-based hydrogen in China’s energy mix creates competition for low-carbon alternatives.
South Korea’s strategy focuses on hybrid systems combining nuclear and renewable hydrogen. The government has introduced a clean hydrogen certification system that recognizes nuclear hydrogen, alongside subsidies for electrolyzer deployment. Korea Hydro & Nuclear Power is piloting a nuclear hydrogen project at the Kori Nuclear Power Plant, with plans to scale up by 2030. While these initiatives are promising, the lack of a clear pricing mechanism for nuclear hydrogen has deterred private investment.
Canada stands out for its leveraging of existing nuclear infrastructure, with Ontario’s Bruce Power exploring hydrogen co-production to support regional industry. The federal government has introduced investment tax credits for clean hydrogen, but the absence of nuclear-specific incentives has limited progress. Meanwhile, the United Kingdom’s Advanced Nuclear Fund includes provisions for hydrogen-compatible reactors, though policy delays have stalled momentum.
Comparative analysis reveals several policy gaps. First, most nations lack a dedicated roadmap for nuclear hydrogen, instead subsuming it under broader hydrogen or nuclear strategies. This leads to underprioritization and funding disparities. Second, regulatory frameworks often fail to address the unique requirements of nuclear hydrogen, such as safety standards for integrated systems. Third, international collaboration is hindered by divergent certification standards and trade barriers.
To foster market growth, policymakers should consider the following recommendations:
1. Establish nuclear hydrogen-specific targets within national hydrogen strategies, backed by tailored funding mechanisms.
2. Streamline regulatory processes for integrated nuclear-hydrogen facilities, ensuring alignment between energy and safety authorities.
3. Expand international cooperation on R&D, particularly in areas like high-temperature electrolysis and modular reactor designs.
4. Introduce carbon pricing or low-carbon mandates to create a level playing field for nuclear hydrogen against fossil-based alternatives.
5. Develop transparent certification systems to ensure nuclear hydrogen can compete in global markets.
The transition from pilot projects to commercial-scale deployment hinges on coherent policy support. While progress varies by region, nations that address these gaps stand to unlock the full potential of nuclear-assisted hydrogen production in the clean energy transition.