With a final vote of 220-207, the Act has made its ascent to US President Joe Biden to be signed into law, marking a milestone for the US hydrogen industry.

Previously described as ‘the most significant legislation in history to tackle the climate crisis’ by President Biden, the Act enclosed a bill which would see producers of clean hydrogen up to $3 per kg of tax credits, as well as making up to $7,500 available for new hydrogen-electric vehicles.

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

Coalition of companies across the hydrogen value chain, Hydrogen Forward offered its support following the passing of the landmark legislation. In a statement it said, “The passage of the IRA represents a significant step forward for the broader hydrogen industry.

“The Clean Hydrogen Production Tax Credit will provide the regulatory certainty needed by industry to invest and scale the deployment of clean hydrogen throughout the United States. The federal government’s actions, through the IRA and the Infrastructure Investment and Jobs Act of 2021, demonstrate the nation’s commitment to achieving ambitious economy-wide decarbonisation goals, with hydrogen playing a prominent role in those efforts.

“Hydrogen’s unique characteristics will help decarbonise hard-to-abate sectors in the US, including power generation, transportation, heating, and industry. This sustained investment will spur the innovation needed to realise hydrogen’s potential across the country.”

Zach Friedman, Director of Federal Policy at the non-profit organisation, Ceres, said, “The Inflation Reduction Act is not just the most ambitious piece of climate legislation in our nation’s history.

“It is also a major advancement in American economic development and industrial policy. It promises to bolster US competitiveness now and in the coming decades, foster domestic supply chains and advanced manufacturing capabilities, reduce and stabilise costs for companies and families, invest in the communities that have too often been left behind, and combat the climate-related risks facing businesses, investors, and our economy.

The wider hydrogen industry has also expressed its support of the bill, and used the chance to make calls for state support for hydrogen across the globe.

Håkon Volldal, CEO of Nel, commented, “This is a fantastic development – and one that completely transforms the outlook for green hydrogen in the US. Only two weeks ago, Biden’s bill looked dead. Now it’s alive and kicking, we can say that the US is going to be one of the cheapest places in the world to produce clean hydrogen.

“What makes this record order particularly special is that it represents a change in market dynamics. The customer has secured power supply over 20 years, and end-product demand over the same time period. Similar long-term prospects will only inspire further investment in green hydrogen and related infrastructure.

“The international picture shows the power of market-based incentives and government support for green hydrogen. We of course hope to see more of the same both in Norway and overseas in the near future.”