The introduction of this House Bill will significantly lower greenhouse gas emissions within the state by incentivising low-carbon hydrogen production in addition to its exportation across borders.

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New Mexico to slash greenhouse gas emissions with hydrogen

With the US Government placing major emphasis in building the hydrogen economy throughout the country, $8bn has been allocated to incentivise the development of four regional hydrogen hubs to support various sectors.

In passing this House Bill in New Mexico, it ensures that the growing hydrogen economy aligns with climate goals within the state as well as helping the creation of clean energy jobs.

Several key areas of industry will be affected by the bill with low-carbon hydrogen set to be utilised in trucking, manufacturing, mining, construction, and electricity generation.

It is hoped that the bill will create tax incentives for low-carbon hydrogen production, distribution, use, refuelling, and electric generating facilities across the state to further decarbonise the economy.

As well as this, it will offer the option to develop regional hydrogen hubs through the creation of public-private partnerships, including funding options through the New Mexico Finance Authority.

The Bill will also prioritise the tax incentives, both inside and outside a regional hydrogen hub, for negative-carbon intensity hydrogen, and establish a greenhouse gas emission limit for any hydrogen electric generating facility seeking tax incentives.

Governor Lujan Grisham said, “By incentivising clean hydrogen development through this legislation, we are steering this emerging industry toward a lower-carbon future.

“This is New Mexico’s chance to reap the vast economic and environmental benefits of clean hydrogen, and I urge legislators to think boldly and support the Hydrogen Hub Development Act.”

US Senator Martin Heinrich said, “As we make strides toward electrification and clean energy generation, there will still be difficult to decarbonise sectors like heavy trucking, aviation, and parts of the industrial sector.

“Clean hydrogen will be critical in solving these challenges. With science-based, rigorous standards in place, clean hydrogen production can become a quickly growing economic driver in New Mexico.

“By taking this step, New Mexico can become the nation’s leader in clean hydrogen production, research, and workforce development.”

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