US Treasury Final Rules Boost Nuclear and Natural Gas Producers in Hydrogen Production
Key Ideas
  • US Treasury final rules offer clarity on clean hydrogen production tax credit, encouraging investment in hydrogen projects.
  • Nuclear power and natural gas producers can now qualify for significant credits, potentially unlocking billions in funding.
  • Stocks of companies like Plug Power and Constellation Energy surged due to the positive impact of hydrogen tax credit eligibility for nuclear providers.
  • Government's inclusion of nuclear power in the tax credit has led to notable gains for companies involved in clean hydrogen infrastructure.
The US Treasury has released final rules on clean hydrogen production, providing clarity on the clean hydrogen production tax credit of up to $3 per kilogram. This has led to increased interest from nuclear energy stocks and companies. Credits for hydrogen production are now available to nuclear power and natural gas producers, potentially unlocking substantial funding. The tax credit, ranging from $0.60 to $3/kg based on carbon emissions, is part of the Inflation Reduction Act. Companies like Plug Power, focusing on green hydrogen, have seen stock surges and investments. Other nuclear-related companies have also experienced significant gains due to eligibility for the hydrogen tax credit, indicating a positive sentiment towards clean hydrogen production and infrastructure.
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