Duke Energy Hydrogen Initiatives for 2025: Key Projects, Strategies and Partnerships

Duke Energy’s Hydrogen Pivot: From Pilot Projects to Power Grids

From Foundational Research to Commercial Preparation

An analysis of Duke Energy’s hydrogen strategy reveals a significant pivot from exploratory research to commercial-scale preparation. Between 2021 and 2024, the company’s activities were characterized by foundational pilots and coalition-building. The primary focus was on proving technological concepts, exemplified by the DeBary project in Florida, designed as the nation’s first end-to-end system to produce, store, and combust 100% green hydrogen. This period also saw Duke form critical alliances, such as the Southeast Hydrogen Hub and the HyBuild™ Carolinas initiative, to establish a regional framework for a future hydrogen economy. The applications were largely experimental, centered on testing electrolyzers, storage systems, and turbine modifications in controlled environments.

Beginning in 2025, an inflection point occurred. Duke Energy’s strategy shifted from R&D to securing the capital, hardware, and fuel supply necessary for large-scale deployment. The partnership with GE Vernova to acquire up to 11 hydrogen-capable 7HA.03 gas turbines marks a move to procure commercially ready assets that de-risk future fuel switching. This was reinforced by a massive $6 billion investment from Brookfield Asset Management into Duke’s Florida utility, explicitly aimed at accelerating its clean energy transition. The long-term gas supply agreement with EQT Corporation, while seemingly counterintuitive, secures a feedstock for existing plants and a potential source for blue hydrogen production, creating a crucial bridge to a green hydrogen future. This variety of activities—from green hydrogen pilots to acquiring H2-ready gas turbines and securing natural gas—indicates a pragmatic, multi-pronged approach. The new opportunity is leveraging these hydrogen-capable gas assets to meet soaring power demand while creating a pathway for future decarbonization. The primary threat is the long-term reliance on natural gas, which could face regulatory and public scrutiny if the transition to hydrogen is delayed.

Capitalizing the Hydrogen Transition

Duke Energy’s investment strategy underscores its methodical shift from demonstration to deployment. Initial investments were targeted at specific pilot projects and foundational infrastructure. However, the 2025-2029 capital plan reveals a significant scaling of financial commitment, directly linking massive grid modernization funds to the enablement of zero-carbon technologies, including hydrogen. The infusion of capital from partners like Brookfield further validates this strategy, providing dedicated funds to accelerate the transition within key regulated markets. This financial evolution shows a clear progression from funding discrete R&D to underwriting a systemic, grid-level energy transition.

Table: Duke Energy Hydrogen-Related Capital Investments

Building a Hydrogen Ecosystem Through Strategic Alliances

Duke Energy’s partnerships are the scaffolding for its hydrogen ambitions, evolving from research collaborations to major financial and industrial alliances. The earlier period saw Duke joining coalitions and working with academic and technology partners to explore feasibility. The recent period is defined by high-stakes deals with asset managers, technology suppliers, and gas producers that are essential for execution at scale. These partnerships collectively form an ecosystem designed to address the entire hydrogen value chain, from production feedstock and generation technology to regional market development and financial backing.

Table: Duke Energy Strategic Hydrogen Partnerships

Concentrating Efforts in the Southeast Power Corridor

Duke Energy’s hydrogen activities are geographically concentrated in its core Southeast service territories, but the focus has intensified and expanded. Between 2021 and 2024, activities were centered on specific sites, such as the DeBary solar farm in Florida for the green hydrogen pilot and Clemson University in South Carolina for R&D. Initiatives like HyBuild™ Carolinas and the Person County plant proposal established North Carolina as a key state for planning and future development. This created pockets of hydrogen expertise within the region.

From 2025 onward, the strategy has scaled from site-specific projects to a coordinated, multi-state regional push. Florida has been elevated to a premier investment hub, validated by Brookfield’s $6 billion stake and a raised five-year capital plan of $87 billion. South Carolina has emerged as a target for major new generation with the proposed 1,400 MW hydrogen-capable plant in Anderson County. The Southeast Hydrogen Hub coalition, involving partners across six states, confirms this regional ambition. This concentration in the Southeast allows Duke to leverage its existing infrastructure, regulatory relationships, and deep knowledge of the regional energy market. It signals that the Southeast is poised to become a leading region for hydrogen adoption in the US, but it also creates a risk of regional dependency, where progress is tied to the political and economic climate of a handful of states.

Technology Maturation: From Demonstration to Deployment-Ready

The maturity of the hydrogen technologies in Duke’s portfolio has advanced significantly, moving from demonstration-focused components to commercially available, scalable systems.

In the 2021–2024 period, the emphasis was on pilot and demonstration. The DeBary project was the flagship, testing the integration of electrolysis, storage, and 100% hydrogen combustion in a modified GE 7E turbine. This was a critical validation step for the full green hydrogen value chain in a real-world utility setting. Similarly, the collaboration with Siemens at Clemson University was squarely in the R&D phase, studying co-firing and production fundamentals. The technology was being proven, not yet deployed for reliable grid service.

The period from 2025 to today marks a decisive shift towards commercial readiness and scalability. The partnership to acquire GE Vernova’s 7HA.03 turbines is a key validation point. These are not experimental units; they are among the most advanced commercial gas turbines, pre-engineered for hydrogen blending. This signals that the core generation technology for a hydrogen transition is now a procurable asset. The proposal for the 1,400 MW plant in South Carolina further confirms this, moving the concept of “hydrogen-capable” from a pilot-scale turbine to a gigawatt-scale power station plan. While 100% green hydrogen combustion remains in the advanced demonstration phase at DeBary, the use of hydrogen blending in large-frame gas turbines is now on a clear path to commercial scaling. This trend suggests investor interest should shift from pure-play tech risk to project execution and regulatory risk.

Table: SWOT Analysis of Duke Energy’s Hydrogen Strategy Evolution

The Path Ahead: Execution and Integration

The most recent data signals that Duke Energy’s hydrogen strategy is entering a critical execution phase. The year ahead will be less about announcing new concepts and more about advancing the large-scale projects already proposed. Market actors should closely watch the regulatory approval process for the 1,400 MW hydrogen-capable plant in Anderson County, South Carolina. Its progress will be a bellwether for the viability of building new, large-scale gas generation as a bridge to hydrogen in the Southeast. Similarly, the material outcomes from the DeBary project, expected to be fully operational, will provide invaluable data on the performance and economics of 100% green hydrogen combustion, influencing future investments. The deployment of capital from the Brookfield partnership in Florida will be a key signal of how quickly grid modernization and hydrogen-enabling infrastructure can be built. The momentum is clearly behind a dual strategy: building new, hydrogen-capable gas generation to ensure grid reliability while continuing to pilot pure-green hydrogen pathways. The signal to watch is whether the “capable” part of the strategy begins to translate into actual hydrogen blending and consumption at scale.

Frequently Asked Questions

What is the main change in Duke Energy’s hydrogen strategy?
The main change is a pivot from small-scale research and pilot projects (2021-2024) to preparation for commercial-scale deployment (2025 onwards). The company has shifted from proving concepts, like the DeBary pilot, to securing the capital (e.g., $6B from Brookfield), commercial hardware (GE Vernova turbines), and fuel supply needed to integrate hydrogen into its power grid at a large scale.

Why is Duke Energy investing in natural gas if its goal is clean hydrogen?
Duke Energy is using natural gas as a ‘bridge fuel’ in a pragmatic, multi-pronged strategy. The long-term gas supply agreement with EQT ensures grid reliability for its existing plants. Importantly, the new gas turbines being acquired are ‘hydrogen-capable,’ meaning they can run on natural gas today and be switched to a blend of hydrogen, or even 100% hydrogen, in the future. This approach de-risks the transition while meeting current energy demand.

How is Duke Energy paying for this massive hydrogen transition?
The transition is being funded through several key channels: a significantly increased five-year capital plan of over $83 billion focused on grid modernization and clean energy; strategic partnerships, such as the $6 billion investment from Brookfield Asset Management specifically for the clean energy transition in Florida; and self-funding through the sale of non-core assets to reinvest in regulated clean energy projects.

What is the significance of the partnerships with GE Vernova and the Southeast Hydrogen Hub?
These partnerships are crucial for execution. The GE Vernova alliance provides Duke with commercially available, deployment-ready gas turbines that are pre-engineered for hydrogen blending, moving the technology from a pilot concept to a procurable asset. The Southeast Hydrogen Hub coalition helps build a regional framework and market for hydrogen, addressing the entire value chain from production to end-use and positioning the region to capture federal funding and accelerate deployment.

What is the primary risk to Duke Energy’s hydrogen strategy going forward?
According to the analysis, the primary risk has shifted from technological uncertainty to execution risk. The main challenges now are navigating regulatory and public approval for building large-scale gas infrastructure (even if it’s ‘hydrogen-capable’) and managing the carbon lock-in risk associated with a long-term reliance on natural gas if the transition to green hydrogen is delayed.

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