The Biden administration has unveiled long-awaited final rules for a tax credit designed to boost cleaner hydrogen production, with the aim of curbing planet-warming emissions. While environmental groups have cautiously welcomed the rules, they also highlighted potential loopholes that may incentivize the production of dirty hydrogen. The administration's goal is to escalate hydrogen production to replace fossil fuels in sectors that emit large amounts of greenhouse gases and are challenging to electrify, such as long-haul transportation and industrial manufacturing like steel-making. The tax credit system takes into account the lifecycle emissions of the hydrogen production process. It supports firms producing hydrogen from water splitting as well as those using natural gas with emissions capture and sequestration technology. Additionally, alternative sources like wastewater, animal manure, and landfill gas are included. However, hydrogen from coal mine methane may qualify for lower tiers of the credit. The industry views this tax credit as a significant step towards supporting clean hydrogen projects that can mitigate climate and health-harming pollution. The rules have garnered support from both Democratic and some Republican members of Congress. Advocates believe that encouraging the production of clean hydrogen will lead to a reduction in carbon emissions, particularly in challenging-to-decarbonize sectors. However, concerns have been raised about accurately tracking emissions from hydrogen produced using natural gas, especially if methane regulations are weakened. The Fuel Cell & Hydrogen Energy Association, which encompasses various stakeholders in the hydrogen sector, is relieved that the rules are in place. The association's president hopes that the tax credit will drive industry progress and inspire confidence for firms to invest in cleaner hydrogen production.