Read more: Landmark US Tax and Climate Bill offers tax credits for clean hydrogen production

Commenting on the announcement which offers hope for hydrogen in the US, Rick Buettel, Vice-President of Hydrogen Business at Bloom Energy, said, “The long-term growth opportunities this bill provides have great implications for our country’s ability to generate abundant, low-cost clean hydrogen in the near future.

“Closing the near-term cost gap with Production Tax Credits between legacy grey hydrogen solutions and clean hydrogen generated from electrolysis will enhance both the supply- and demand-side for green hydrogen which will accelerate decarbonisation and arresting global climate change.

“Executing upon these opportunities and projects will accelerate our nation’s progress towards President Biden’s 2030 goals. Bloom Energy is dedicated to leading these innovations through new collaborations and partnerships within the industry, and we celebrate the progress being made in Washington.”

Coalition of companies along the entire hydrogen value chain, Hydrogen Forward has offered its support for the package, saying it will a critical role in addressing the decarbonisation of hard-to-abate sectors.

Hydrogen Forward, said, “A hydrogen production tax credit is critical to the advancement of the technology necessary to reduce emissions and grow the clean energy economy.

“Hydrogen Forward is very pleased to see this incentive, along with a fuel cell electric vehicle tax credit, included in this draft legislation. This will encourage further growth of clean hydrogen, which will play a critical role in addressing hard-to-decarbonise sectors like transportation, heavy industry, agriculture, and power generation.”

H2 View understands, Connecticut-based FuelCell Energy, believes federal government policy direction will help the private sector, and that the US can follow the model like those seen in the European Union in terms of hydrogen, carbon capture, and clean base generation platforms.

We expect a comment from FuelCell Energy later today.

Against this backdrop, the Maryland-based, non-profit research and educational organisation, SUN DAY campaign, revealed today (July 29), its analysis found three reports released by the US Energy Information Administration (EIA) point to the conclusion that renewable energy sources have continued to expand their share of the nation’s energy production and electricity generation.

With incentives now available for low-carbon hydrogen production, rapidly growing renewable energy resources could provide a foundation for the rapid scaling of clean hydrogen production.

SUN DAY has said, “During the first third of 2022, renewable energy sources (i.e., biofuels, biomass, geothermal, hydropower, solar, wind) accounted for 13.82% of total US energy production for electricity, transportation, heating, feedstocks, and other needs compared to 12.85% a year earlier. Renewable energy output for the first four months of 2022 was 14.03% higher than for the same period in 2021.

“Renewables also accounted for 13.14% of domestic energy consumption up from 12.21% a year earlier. The use of solar energy rose by 27.57% while that of wind increased by 24.25%. Consumption of biofuels expanded by 9.74%.”