Passed with a margin of 51 to 50, the Inflation Reduction Act holds a landmark Tax and Climate Bill, offering $3 per kg in tax credits for low hydrogen production, which could make the clean energy carrier cheaper than grey produced hydrogen.
Read more: Landmark US Tax and Climate Bill offers tax credits for clean hydrogen production
Set at a basic rate of $0.60/kg, the Bill will use a scale of credit calculation based on lifecycle emissions (measured in carbon-dioxide equivalent), offering hydrogen manufactured with 0.45-1.5kg, 1.5-2.5kg, and 2.5kg of lifecycle emissions the chance to collect 33.4%, 25% and 20% of the credits respectively.
Aside from credits for production, the Bill also offers a revision to the electric vehicle tax credit to include hydrogen fuel cell-electric vehicles, with up to $7,500 available for new vehicles and $4,500 for used vehicles.
Following the passing of the Bill, in a statement, US President Joe Biden, said, “This Bill also makes the largest investment ever in combatting the existential crisis of climate change. It addresses the climate crisis and strengthens our energy security, creating jobs manufacturing solar panels, wind turbines, and electric vehicles in America with American workers.”
Despite still needing to pass the House of Representatives and be signed by the president before it becomes law, the passing of the Senate is seen one of the biggest wins for President Biden.
When proposed on July 28 (2022), players within the hydrogen industry widely welcomed the Bill, with several claiming it will come as the most significant piece of legislation for the industry.
Elina Teplinsky, International Practice Lead, Deputy Energy Industry Leader at Pillsbury Winthrop Shaw Pittman LLP, said in a LinkedIn post, “If passed, this bill would constitute a historic investment in the US clean energy industry, including nuclear energy, hydrogen and fuel cells, carbon capture and storage, renewables and battery storage, and the supply chain for clean energy manufacturing in the US.”
Read more: Industry reacts to clean hydrogen tax credits in the US Tax and Climate Bill
Let’s make hydrogen happen – the closing message from H2 View’s North America Hydrogen Summit
Closing an exciting, informative day of discussion at H2 View’s North America Hydrogen Summit, Bill Elrick, Executive Director of the California Fuel Cell Partnership (CaFCP), reflected on the summit while looking ahead to the future.
Elrick said, “Hydrogen has changed entirely. It used to be the unicorn in the room, but I feel now it is a completely different ballgame.
“We know climate change and the urgency that we know now sees around that is really pushing the hydrogen momentum and the fuel cells and everything around that…
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