A leaked draft of hydrogen tax credit rules from the US Treasury Department has reignited disputes within the industry and environmental circles. According to sources familiar with the plan, as reported by Bloomberg and Politico, the leaked draft indicates that the proposed USD-3-per-kilogram credit would be restricted to hydrogen production derived from wind, solar, or other clean-power projects executed within the last three years.
Additionally, the draft outlines stringent requirements, with electrolysers mandated to be matched with new clean power on an annual basis starting from 2027 and an hourly basis from 2028, surpassing regulations in the European Union.
Deputy Energy Secretary David Turk, speaking at the COP28 climate summit in Dubai, acknowledged the intense debates on the topic, emphasizing their potential contribution to an overall solution. The leaked guidelines faced criticism from Jason Grumet, head of the American Clean Power Association, who expressed concern that they could impede the industry's development.
However, a sector player cited by Bloomberg suggested that if the leaks prove accurate, the Biden-Harris Administration has struck a rational middle ground, recognizing that complete satisfaction across stakeholders was challenging.
Anticipation for the release of the tax credit rules by the year-end persists, but a recent Reuters report, citing sources familiar with the matter, suggests that ongoing disputes over the guidelines might extend the release into 2024.
