DOE Updates 45VH2-GREET Model for Clean Hydrogen Production Tax Credit
Key Ideas
- DOE released updated 45VH2-GREET model crucial for qualifying for Clean Hydrogen Production Tax Credit under Inflation Reduction Act.
- Model's assumptions for biogas and coal mine methane feedstocks highlighted for hydrogen producers seeking 45V credit eligibility.
- 45VH2-GREET includes specific criteria for determining lifecycle emissions, affecting credit amounts based on production pathways and feedstock types.
- Assumptions for counterfactual scenarios explained for landfill gas, anaerobic digestion of wastewater sludge, animal manure, and coal mine methane under updated model.
The DOE recently released updated versions of the 45VH2-GREET model and instructional manual, crucial for hydrogen producers seeking eligibility for the Clean Hydrogen Production Tax Credit under the Inflation Reduction Act (IRA). The model's focus on biogas and coal mine methane feedstocks is essential for demonstrating compliance with specific lifecycle emissions thresholds required to qualify for the 45V credit. The model, approved by the Treasury Secretary as the successor model for determining lifecycle emissions, includes assumptions and criteria that impact the amount of the credit based on production pathways and feedstock types.
The updated 45VH2-GREET now incorporates assumptions for biogas from anaerobic digestion of wastewater sludge, animal manure, and coal mine methane in addition to the previous inclusion of landfill gas. Notably, the model assumes a direct pipeline connection between the feedstock supplier and hydrogen producer. Specific counterfactual scenarios for landfill gas, anaerobic digestion of wastewater sludge, animal manure, and coal mine methane are detailed in the updated instructions, providing insights into avoided emissions and emissions associated with various processes.
For example, the model assumes landfill gas would be flared if not used for hydrogen production, resulting in an avoided emissions assumption. Similarly, assumptions for anaerobic digestion of wastewater sludge and animal manure biogas involve scenarios of gas usage for different purposes, flaring, and leakage, all impacting the overall emissions calculations. The updated model also addresses emissions associated with upgrading biogas to renewable natural gas and leakage during pipeline transport.
Furthermore, the model accounts for emissions from coal mine methane and distinguishes it as a fugitive methane feedstock, highlighting its unique considerations for hydrogen production. By providing detailed assumptions and criteria, the updated 45VH2-GREET model aims to streamline the process for hydrogen producers to assess their environmental impact and qualify for the Clean Hydrogen Production Tax Credit.
Topics
Power
DOE
Clean Fuels
Tax Credit
Federal Regulations
Feedstocks
Energy Incentives
Lifecycle Emissions
Emission Modeling
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