US rules on clean hydrogen not so simple after all?

The US Treasury’s guidance for clean hydrogen producers to claim the top $3/kg rate of the H2 production tax credit could be even stricter than EU regulations, based on details of a leaked draft reported in Politico and Bloomberg. The rules also include additionality and geographical correlation, despite pushback from industry and politicians (read more).

In addition, the Department of Energy released an assessment that shows that blue hydrogen is unlikely to qualify for US H2 tax credits due to high upstream emissions. The figures released in its new Hydrogen Shot Technology Assessment suggest that most blue hydrogen will not only be much higher-cost than the US target of $1/kg by 2031, but have an emissions footprint beyond what can be considered “clean” H2, making it ineligible for tax credits (read more).