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
26 July 2024
European offtakers and strategic investors start to unlock North African country’s vast potential as a green hydrogen and ammonia supplier
25 July 2024
Investment in 100MW green hydrogen facility in Germany comes as oil major’s wider transition strategy comes under scrutiny
24 July 2024
World’s largest green fertiliser supply agreement puts Villeta project in Paraguay on track for FID later this year
23 July 2024
Awards experience 20% increase in nominations this year, with submissions from 27 countries