Hydrogen hubs pan ‘overly restrictive’ Biden tax credit rules

February 27, 2024

All seven of the Department of Energy’s planned hydrogen hubs are calling on the Treasury Department to change its proposed rules for the clean hydrogen production tax credit.

In a joint letter, the leaders of the hubs argued that the Treasury guidance is “overly restrictive” and would prevent many of the hubs’ projects from being realized. DOE plans to fund the regional hubs — which are helmed by a mix of private sector groups and state governments — with $7 billion from the climate law.

“Each of our hubs has a range of ambitious projects aimed at accelerating the clean hydrogen industry, fostering economic growth, creating good-paying American jobs, and advancing environmental justice,” the leaders wrote, later adding: “Unfortunately, these investments and jobs will not fully materialize unless Treasury’s guidance, in its current form, is significantly revised, as many of the projects generating these investments and supporting jobs will no longer be economically viable.”

The joint letter marks the first time all of the hubs have publicly spoken out against Treasury’s proposed guidance for who qualifies to claim a lucrative $3 per kilogram of clean hydrogen produced. It does not include recommendations for the draft rules, which would require companies to immediately start using new clean electricity for hydrogen production.

Read more here.

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