U.S. Treasury Department Reverses Decision, Allowing Nuclear Plants to Qualify for Tax Credits for Clean Hydrogen Production
Key Ideas
  • The U.S. Treasury Department reversed its decision to prohibit existing nuclear plants from qualifying for federal tax credits under Section 45V, now allowing a significant portion of the merchant nuclear fleet to earn credits for hydrogen production.
  • Constellation, a Fortune 200 company, expressed satisfaction with the change, highlighting the importance of reliable nuclear energy for transitioning to clean hydrogen and sustainable technologies.
  • The final rule is seen as a positive step in utilizing nuclear energy for clean hydrogen production, as demonstrated by Constellation's 10-year agreement for clean nuclear power with the U.S. General Services Administration.
  • Constellation is assessing the impact of the new rules and electric transmission charges on its proposed clean hydrogen project at the LaSalle Clean Energy Center and its involvement in the MachH2 Hub.
Constellation, the largest producer of carbon-free energy in the U.S., welcomes the U.S. Treasury Department's decision to reverse the prohibition on nuclear plants qualifying for tax credits for hydrogen production. Joe Dominguez, Constellation's president and CEO, emphasized the importance of reliable nuclear energy in enabling the transition to clean hydrogen and other sustainable technologies. The company expressed approval of the final rule, noting its significance in supporting the use of nuclear energy for clean hydrogen production. Constellation's commitment to clean energy is further evidenced by its ambitious goal of achieving 100% carbon-free generation by 2040. The company is currently evaluating the implications of the new rules and electric transmission charges on its clean hydrogen project at the LaSalle Clean Energy Center and its role in the MachH2 Hub. As a leader in clean, emissions-free energy production, Constellation continues to drive the nation's transition to a carbon-free future by investing in emerging technologies to eliminate carbon emissions across various sectors of the economy.
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