WASHINGTON – Today the U.S. Department of Treasury released its proposed guidance for the Inflation Reduction Act (IRA) federal clean hydrogen tax credits, which are expected to amount to several hundreds of billions of dollars in subsidies for the emerging industry. The rules contain strong measures to ensure that electrolytic hydrogen production does not add overwhelming new demand on the power grid and bring extra fossil fuels online at the expense of the climate and U.S. electricity customers.
Researchers predict the proposed rules will help avoid hundreds of millions of tons of carbon emissions over the next fifteen years and protect against compromising the U.S. clean energy transition. The rules will also protect U.S. households and businesses from potentially increased electricity prices caused by the highly electricity-intensive nature of electrolytic hydrogen…