The Biden administration has released final rules for a tax credit aimed at supporting cleaner hydrogen production. The rules are designed to send billions of dollars to producers of hydrogen with lower carbon emissions, with the ultimate goal of reducing planet-warming emissions and displacing fossil fuels. While environmental groups have cautiously welcomed the rules, they have raised concerns about loopholes that may still benefit producers of dirty hydrogen. The tax credit, part of the Inflation Reduction Act, is considered a significant policy to support the clean hydrogen industry. It has garnered bipartisan support and is expected to drive investments in renewable energy sources like hydrogen. Industry experts believe that encouraging the production of clean hydrogen can play a crucial role in decarbonizing hard-to-electrify sectors such as aviation, marine shipping, and steel production by replacing fossil fuels. However, there are concerns about accurately tracking emissions, especially for hydrogen produced from natural gas, in light of potential regulatory changes. The Fuel Cell & Hydrogen Energy Association, which represents various stakeholders involved in hydrogen production, distribution, and use, has expressed relief that the rules are finally in place. The industry is now waiting to see if the tax credit will effectively move the hydrogen industry forward and provide firms with the confidence to make investments.