The Biden administration has made adjustments to stringent safeguards on a tax credit intended to promote hydrogen production. This move came in response to concerns raised by companies that the rules could hinder domestic manufacturing of fuel. The tax credit, established by President Biden's climate law, now includes provisions that benefit existing nuclear power plants, a change sought by companies like Constellation Energy Corp. Additionally, hydrogen produced from sources like natural gas with carbon capture, methane, and renewable natural gas can now qualify for the tax credit. This decision is part of an effort to foster a domestic industry for clean-burning hydrogen, which is essential for reducing carbon emissions in various sectors such as steel, cement, and heavy transportation. The alterations in the rules also accommodate the concerns of hydrogen producers, including Plug Power Inc., who have been lobbying for changes to the subsidy criteria. The revisions aim to offer certainty to hydrogen producers, facilitating the progression of projects and positioning the United States as a global leader in green hydrogen production. The tax credit, which can provide up to $3 per kilogram for hydrogen production, is a significant incentive for the industry. The final rules outline incentives for projects that utilize renewable energy sources, with a focus on wind, solar, and other renewable generating plants integrated into the grid within a specific timeframe. The rules also extend the period for meeting the requirement of simultaneous clean energy generation with hydrogen production. Furthermore, the eligibility criteria have been broadened to include nuclear reactors, states with robust greenhouse gas emission caps, and various sources of renewable natural gas like methane from wastewater and animal manure. While mainstream environmental groups like the Natural Resources Defense Council have commended the final rules as a step toward a cleaner hydrogen industry, there are criticisms from some quarters. Earthjustice has pointed out loopholes that could benefit 'dirty' hydrogen producers and has called for stronger protections to be put in place. Despite differing opinions, the revisions to the rules signify a positive step towards boosting the hydrogen industry and addressing climate change concerns.