US carbon capture tax incentives could hand blue hydrogen producers millions in subsidies with no net cut to greenhouse gas (GHG) emissions, according to a new Institute for Energy Economics and Financial Analysis (IEEFA) report.

IEEFA labelled the current 45Q incentive structure a “lose-lose” for taxpayers and the environment, warning that it could “cost billions in subsidies” for “essentially zero environmental benefits” – particularly when applied to blue hydrogen projects.

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