The Biden administration has introduced new tax credit rules to support the domestic production of hydrogen fuel while also providing a lifeline to struggling nuclear power plants. Hydrogen, produced through processes like electrolysis, is viewed as a sustainable alternative to fossil fuels due to its emission of water vapor instead of greenhouse gases. The tax credit, known as 45V, values hydrogen production at up to $3 per kilogram, incentivizing companies to limit pollution and use clean energy sources. Initially facing backlash from the nuclear industry, the rules were eventually modified to allow existing nuclear power plants to benefit from the tax credit, aiding in hydrogen production. The guidelines also extend support for hydrogen production from methane emissions in various sectors and relax requirements for renewable energy usage. The move aims to position the U.S. as a leader in green hydrogen production while addressing concerns about the strain on the country's limited carbon-free electricity supply. By allowing flexibility in energy sources and easing regulations, the rules aim to maintain the momentum of hydrogen projects and support the development of clean energy infrastructure. The final rules also accommodate hydrogen production with electricity from sources like fossil fuel plants equipped with carbon capture technology, expanding the range of eligible projects. The regulations provide certainty to hydrogen producers, promoting the growth of the industry and aligning with the Biden administration's climate goals. Additionally, the rules support the development of new nuclear technologies, such as small modular reactors, to meet the rising demand for carbon-free energy from tech companies like Microsoft, Google, and Amazon. The initiatives signify a step towards a greener energy landscape in the U.S., balancing environmental concerns with energy production and infrastructure development.