The Biden administration has finalized its plan to offer tax credits to companies producing hydrogen in an effort to combat climate change. Hydrogen, when burned, emits mainly water vapor and can be a cleaner alternative to fossil fuels in various industries. Most hydrogen today is produced from natural gas, which emits significant carbon dioxide, but the administration aims to promote 'clean hydrogen' made with low-emission sources like wind or solar power. The Treasury Department's guidelines, released after intense lobbying, provide support for hydrogen producers, allowing more flexibility in claiming tax credits. While concerns about stringent conditions have been addressed, there is still ongoing evaluation of the details. The rules include provisions such as giving producers until 2030 to match their output with clean electricity hourly, recognizing certain states' efforts to reduce emissions, and allowing the use of methane from landfills or coal mines for hydrogen production. Industry feedback has been positive overall, with a trade group CEO noting the rules are an improvement. Environmentalists highlight the safeguards in place to prevent emissions surges. The Energy Department projects significant growth in cleaner hydrogen use by 2030. However, potential political and economic hurdles remain, as future Congresses could repeal tax credits, and production costs are still relatively high. Despite these challenges, there is bipartisan support for hydrogen, and oil and gas companies have also shown interest. The final rules provide a framework for the hydrogen industry to expand and contribute to decarbonizing various sectors of the economy.