US Hydrogen Policy: A Dynamic Landscape Shaped by the Inflation Reduction Act
Key Ideas
- The Inflation Reduction Act has sparked a vigorous debate and significant market activity in the US hydrogen sector.
- The clean hydrogen production tax credit provided by Section 45V within the IRA has incentivized new factories, projects, and business strategies.
- US Regional Clean Hydrogen Hubs are seeking amendments to the guidance on the clean hydrogen PTC to further enhance the sector's growth and evolution.
- The hydrogen landscape in the US has witnessed remarkable developments in less than two years post the introduction of the IRA, with $7bn funding allocated to hydrogen hubs.
The United States has experienced a transformative period in its hydrogen policy following the Inflation Reduction Act (IRA) of August 2022. This legislation, particularly the clean hydrogen production tax credit (PTC) offered by Section 45V within the IRA, has catalyzed a surge in market activity and research and development efforts within the hydrogen sector. Electrolyzer Original Equipment Manufacturers (OEMs) and project developers have been quick to capitalize on the incentives provided by the PTC, leading to the announcement of new factories, large-scale projects, and innovative business strategies focused on clean hydrogen production.
Furthermore, the establishment of US Regional Clean Hydrogen Hubs, supported by a combined $7 billion in funding, marks a significant milestone in the country's transition towards a hydrogen-based economy. These hubs have now called upon the government to review and potentially modify the proposed guidelines related to the clean hydrogen PTC to ensure optimal utilization of the allocated funds and to drive further advancements in the sector. The dynamic and rapidly evolving landscape of hydrogen in the US highlights the promising future of this clean energy source and underscores the importance of continued policy support and strategic investments in the domain.
Topics
North America
Policy
Clean Energy
Tax Credit
Inflation Reduction Act
Market Activity
R&D Efforts
PTC
Electrolyzer OEMs
Latest News