The Biden administration has unveiled final rules for a tax credit designed to promote cleaner hydrogen production, a key step in the transition towards a more sustainable energy future. The rules aim to incentivize hydrogen production as an alternative to fossil fuels in sectors where electrification is challenging, such as long-haul transportation and industrial manufacturing. While most hydrogen is currently derived from natural gas, the new rules encourage hydrogen production from renewable sources like solar, wind, nuclear, and geothermal energy, which emit minimal greenhouse gases. Environmental groups have cautiously welcomed the rules, acknowledging their potential to reduce emissions but also highlighting loopholes that could still benefit producers of 'dirty' hydrogen. The credit, part of the Inflation Reduction Act, has bipartisan support and is focused on the lifecycle emissions of hydrogen production. However, concerns persist about accurately tracking emissions, particularly for hydrogen produced from natural gas, amid potential weakening of methane regulations. Experts believe that the tax credit could significantly impact industry sectors like aviation, marine shipping, and steel production by promoting the use of cleaner hydrogen over unabated fossil fuels. The Fuel Cell & Hydrogen Energy Association, representing various stakeholders in the hydrogen sector, expressed relief at the finalization of the rules but emphasized the importance of the credit in driving industry advancements and boosting investor confidence. While the rules are seen as a positive step towards promoting clean hydrogen, ensuring uniform implementation and preventing loopholes that may incentivize less sustainable practices remain key challenges for the sector's growth and environmental impact.