The Biden administration has announced that nuclear power plants will be eligible for tax credits to support the production of clean hydrogen under the Inflation Reduction Act. This move is part of efforts to combat climate change by promoting technologies that cut down on greenhouse gas emissions. Some environmental groups have expressed concerns that diverting nuclear energy to hydrogen production could impact the availability of clean energy for other consumers. The U.S. Treasury finalized the rules, allowing up to 200 megawatts of a nuclear reactor's capacity to be considered new clean power and qualify for the tax credits if the reactor was at risk of closure due to economic reasons. Additionally, the rules now permit natural gas facilities producing hydrogen to access the credits if they adopt carbon capture and storage mechanisms. The government aims to evaluate the credits based on a climate model that includes lifecycle emissions like methane leakage from natural gas production. The adjustments in the rules are designed to provide assurance to hydrogen producers, promote the advancement of green hydrogen projects, and establish the U.S. as a leading player in sustainable hydrogen production.