The Biden administration has announced that nuclear power plants will now be eligible to receive tax credits for producing clean hydrogen as part of the Inflation Reduction Act, a law aimed at combating climate change by supporting technologies that reduce greenhouse gas emissions. This decision has settled a contentious issue and is seen as crucial for decarbonizing heavy industry and certain vehicles. Environmental groups have raised concerns that diverting clean energy from nuclear reactors to hydrogen production could have negative repercussions, but the Treasury Department believes that preventing reactor retirements will offset induced emissions. The new rules, recently released by the U.S. Treasury, aim to support nuclear power and other industries in advancing the production of green hydrogen. Additionally, the rules allow natural gas facilities producing hydrogen to access tax credits if they implement carbon-capture technologies. This move is part of the administration's efforts to promote cleaner alternatives to fossil fuel-based hydrogen production and establish the U.S. as a leader in green hydrogen development. The rules also consider factors such as methane leakage during natural gas production in determining the value of credits earned by plants, aligning with efforts to reduce lifecycle emissions in the hydrogen sector.