Letter on hydrogen: IRA’s reality check
Proposed regulation of production tax credits exhibits many of the complexities and tight definitions contained in EU’s green hydrogen framework
The US Treasury has published proposals on the regulation of hydrogen production tax credits to be offered under the Inflation Reduction Act (IRA). The proposals end months of speculation over the implementation of IRA in the hydrogen sector. Clarity around the definitions of green hydrogen production projects which can qualify for credits will reassure developers and their financial backers and help bring more projects to FID. But the proposals also present a reality check. IRA’s hydrogen support regime has dazzled the industry with offers of a top rate of $3/kg tax credit. Project developers and OEMs such as electrolyser manufacturers have flocked to the US market, pledging substantial inv
Also in this section
24 April 2024
Demand for energy purposes to outpace feedstock applications by the 2040s as government policies drive consumption, says DNV
24 April 2024
Danish firm joins growing list of European electrolyser manufacturers establishing production in US as IRA incentives prove strong draw
19 April 2024
UAE renewables developer weighs opportunities to join green hydrogen projects in US and Canada, Andreas Bieringer, director of green hydrogen business development and commercial, tells Hydrogen Economist
17 April 2024
Building green hydrogen ports and lower production costs key to becoming global exporter