US act would introduce credits for hydrogen production
Projects making clean hydrogen could get a tax credit of up to $3/kg if bill survives in current form
The US’ proposed Inflation Reduction Act of 2022 bill, announced last week, will extend tax credits for the hydrogen sector. Projects making clean hydrogen could get a tax credit of up to $3/kg if lifecycle CO₂ emissions are below 0.45kg per kg of hydrogen produced and if labour rules are met. Producers then receive less support on a sliding scale as the emissions intensity of their hydrogen production increases. Hydrogen manufacture that emits more than 4kg of CO₂ per kg of hydrogen produced will receive no support. The compromise ‘July surprise’ announced by Senate majority leader Chuck Schumer and West Virginia Senator Joe Manchin—both Democrats—sets aside $369bn to support climate initia
Also in this section
22 October 2024
Hydrogen is making inroads as a fuel for power plants as governments seek clean fuels to back up intermittent wind and solar
21 October 2024
Gulf Energy Information will host the largest women's event in the energy industry on 19–20 November in Houston, Texas
18 October 2024
Project in northeast of country set to start up in 2025 as developer signs technology deal with Icelandic firm Carbon Recycling International
17 October 2024
Experts debate carbon pricing and fossil fuel subsidies in the MENA region on second day of summit