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Caribbeans

(1,142 posts)
Sat Jan 4, 2025, 12:25 AM Jan 2025

After Fierce Lobbying, Treasury Sets Rules for Billions in Hydrogen Subsidies


Moving an electrolyzer, a piece of equipment that generates hydrogen from water using electricity, from a train to a truck at a hydrogen production and storage facility in Delta, Utah, in 2023.Credit...Nina Riggio for The New York Times

After Fierce Lobbying, Treasury Sets Rules for Billions in Hydrogen Subsidies

With a lucrative tax credit, the Biden administration is hoping to establish a new industry that might help fight climate change.

New York Times | Brad Plumer | Jan 3, 2025

The Biden administration on Friday made final its long-awaited plan to offer billions of dollars in tax credits to companies that make hydrogen, in the hopes of building up a new industry that might help fight climate change.

When burned, hydrogen mainly emits water vapor, and it could be used instead of fossil fuels to make steel or fertilizer or to power large trucks or ships.

But whether or not hydrogen is good for the climate depends on how it is made. Today, most hydrogen is produced from natural gas in a process that emits a lot of planet-warming carbon dioxide. The Biden administration wants to encourage companies to make so-called clean hydrogen by using wind, solar or other low-emission sources of electricity.

In 2022, Congress approved a lucrative tax credit for companies that make clean hydrogen. But the Treasury Department needed to issue rules to clarify what, exactly, companies had to do to claim that credit. The agency released proposed guidance in 2023 but many businesses have been waiting for the final rules before making investments...

...“Clean hydrogen can play a critical role decarbonizing multiple sectors across our economy, from industry to transportation, from energy storage to much more,” said David Turk, the deputy secretary of energy. “The final rules announced today set us on a path to accelerate deployment.”...more
https://www.nytimes.com/2025/01/03/climate/hydrogen-subsidies-biden-treasury.html

After Fierce Lobbying, Treasury Sets Rules for Billions in Hydrogen Subsidies
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