The US wants to reduce the cost of clean hydrogen by 80% to $1 (0.71p) per kilogramme within the decade.
Official figures show that currently, hydrogen produced from renewable energy costs about $5 (£3.5) per kilogramme.
The so-called Energy Earthshot: Hydrogen Shot initiative, launched by the US Department of Energy, aims to accelerate technological innovations and spur the demand for clean hydrogen by removing barriers for its quick deployment such as cost.
It will support demonstration projects to increase their scale to meet increasing needs for cleaner sources of energy.
As part of the programme, the US Department of Energy has issued a Request for Information on viable hydrogen demonstrations that can contribute to lowering the cost of hydrogen production, reducing carbon dioxide emissions while creating new green jobs.
The US Secretary of Energy Granholm said: “Clean hydrogen is a game changer. It will help decarbonise high-polluting heavy-duty and industrial sectors, while delivering good-paying clean energy jobs and realizing a net zero economy by 2050.”