The Biden administration has announced that nuclear power plants will be eligible for tax credits to produce clean hydrogen, under the Inflation Reduction Act. This move is part of efforts to combat climate change by supporting technologies that reduce greenhouse gas emissions. Environmental groups are divided on the decision, as some argue that diverting clean energy from nuclear reactors for hydrogen production could impact other electricity consumers. The U.S. Treasury finalized rules that allow struggling reactors to collect credits for up to 200 megawatts of power generation capacity, if at risk of closure due to economic reasons. The administration believes these changes will provide certainty to hydrogen producers and position the U.S. as a leader in green hydrogen. Additionally, the updated rules also enable natural gas facilities to access credits if they implement carbon capture technologies. This decision aligns with efforts to promote cleaner alternatives to fossil fuel-based hydrogen production. The government plans to factor in greenhouse gas emissions, including methane leakage, in a climate model known as GREET to determine credit values for hydrogen production. The industry is optimistic about engaging with the new administration to further advance hydrogen development and federal energy policies.