The Biden administration has released long-awaited final rules for a tax credit designed to support cleaner hydrogen production, which would send billions of dollars to producers in the industry. The tax credit aims to incentivize the transition towards hydrogen as an energy source to displace fossil fuels in sectors that emit substantial greenhouse gases. While most hydrogen is currently produced from natural gas, contributing to climate change, the new rules encourage production through methods like splitting water with renewable energy sources to minimize planet-warming emissions. The rules also extend the tax credit to firms using technologies to capture and sequester emissions from natural gas production, as well as those producing hydrogen from alternative sources like wastewater and landfill gas. The administration's initiative is part of efforts to promote the clean hydrogen industry, supported by both Democrats and some Republican members of Congress. Environmental groups have welcomed the rules, acknowledging the potential for reduced emissions and the development of cleaner projects. However, concerns have been raised about loopholes that could allow producers of dirty hydrogen to benefit from the program. The tax credit is seen as a critical step in decarbonizing sectors that are challenging to electrify, such as aviation, shipping, and steel production. Experts in the industry express optimism about the tax credit's potential to drive investments in clean hydrogen production, emphasizing the importance of displacing unabated fossil fuels and mitigating climate impact. The final rules have been met with a sense of relief by stakeholders, who now await the industry's response to the incentives provided. However, there are concerns about accurately tracking emissions from natural gas-produced hydrogen if regulations on methane emissions are weakened. Overall, the tax credit represents a significant milestone in advancing the clean hydrogen sector and fostering a transition towards more sustainable energy sources.