Growing Demand for Hydrogen Creates Opportunities for Appalachian Manufacturers

With Abundant Natural Gas and a Ready Manufacturing Base, Appalachia is positioned to be a Leader in Blue Hydrogen Production

PITTSBURGH, PA, UNITED STATES, February 5, 2026 /EINPresswire.com/ -- Growing interest in hydrogen as a flexible energy source is creating new supply chain opportunities for Appalachian manufacturers. A new report from the Energy & Manufacturing in Appalachia (EMA) initiative examines how regional manufacturers can supply the industrial components required to build hydrogen production facilities, particularly projects focused on blue hydrogen that leverage existing natural gas infrastructure, despite uncertainty around federal incentives.

The EMA initiative by Catalyst Connection, southwestern Pennsylvania’s economic development organization, along with the following regional partners: Alliance for Manufacturing and Technology (AMT), Innovative Manufacturers Center, Magnet, Manufacturers Resource Center, MANTEC, Maryland MEP, Northeastern PA IRC, Northwestern PA IRC, Reimagine Appalachia, and West Virginia University.

“For Appalachian manufacturers, the hydrogen economy is no longer a future concept, but rather an emerging market,” said Petra Mitchell, President and CEO of Catalyst Connection. “Our region’s industrial expertise and access to low-cost natural gas position us to lead in building the hydrogen supply chain.”

Appalachia Uniquely Suited to Meet Blue Hydrogen Opportunity

Blue hydrogen production, which uses natural gas combined with carbon capture technology, is gaining momentum due to Appalachia’s unique advantages. The region sits atop the Marcellus and Utica shale formations, providing abundant, low-cost feedstock, and also has suitable geological formations for the permanent storage of captured carbon dioxide. While federal seed funding helped launch regional hydrogen initiatives, recent political developments have placed approximately $1.7 billion in federal support for hydrogen hubs under review, creating uncertainty for projects dependent solely on public funding. Privately financed blue hydrogen projects, however, continue to move forward, driven by market demand and existing energy assets.

Hydrogen facilities are best understood not as experimental laboratories, but as large-scale industrial plants requiring familiar heavy manufacturing inputs. The core opportunity for manufacturers lies not in chemical processes, but in the production of durable, high-specification equipment used throughout hydrogen production systems.

Changing Federal Incentives Favor Blue Hydrogen

Recent policy changes are also shaping the market outlook. The 2025 One Big Beautiful Bill Act shortened the eligibility window for the Section 45V clean hydrogen production tax credit, moving its expiration to December 2027. This change favors blue hydrogen projects, which can be deployed more quickly using existing natural gas infrastructure, while green hydrogen projects that rely on new renewable generation may struggle to meet the 2027 deadline. At the same time, the Section 45Q tax credit for carbon capture remains intact, strengthening the economics of blue hydrogen facilities that incorporate capture and sequestration systems.

Manufacturing and Supply Chain Opportunities

EMA’s Hydrogen Supply Chain Map focuses on Steam-Methane Reforming (SMR) with carbon capture and identifies where manufacturers can align existing capabilities with hydrogen infrastructure needs. The report highlights supply-chain opportunities for Appalachian manufacturers, including:

• Heavy-gauge piping, tubing, and fittings used for natural gas feedstock and hydrogen transport
• Pressure vessels, storage tanks, and reactor housings built to ASME standards
• Compressors, pumps, and blowers for hydrogen and carbon dioxide handling
• Heat exchangers, reformer components, and high-temperature alloy tubing
• Valves, flanges, and fittings are designed to prevent hydrogen embrittlement and leaks
• Instrumentation, sensors, and control systems for monitoring pressure, temperature, and safety

As hydrogen projects race to deployment to meet current federal incentive deadlines, manufacturers that are ready to supply these components will have a significant advantage over competitors.

Read the full report.

About Catalyst Connection

Catalyst Connection is a southwestern Pennsylvania economic development organization dedicated to serving manufacturers. For more than 35 years, Catalyst has operated with a focus on powering potential through delivering technical assistance and management consulting services and developing long-standing partnerships across the region. Catalyst maintains a deeply held commitment to modernizing manufacturing and enabling opportunity across business enterprises, individuals, and throughout communities.

Catalyst Connection is supported, in part, by the Pennsylvania Department of Community and Economic Development and the National Institute of Standards and Technology Manufacturing Extension Partnership (NIST MEP). As such, we are an affiliate of the Pennsylvania Industrial Resource Center (IRC) and the MEP National Network in southwestern Pennsylvania.

About the Energy & Manufacturing in Appalachia Initiative

The Energy & Manufacturing in Appalachia (EMA) initiative provides technical assistance and business support to small and medium manufacturers and enterprises in 156 counties of Maryland, New York, Ohio, Pennsylvania, and West Virginia seeking to expand business, production, and jobs in the energy supply chains or to be more energy efficient.

Allison Moux
Catalyst Connection
+1 412-918-4252
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