US trade associations have warned current Inflation Reduction Act (IRA) clean hydrogen production tax credit (PTC) rules could jeopardise blue hydrogen projects due to upstream emission assumptions.
The proposed 45V PTC’s GREET model for calculating hydrogen production emissions currently assesses upstream methane emissions in blue hydrogen production pathways as “background data.”
However, in a letter to Treasury officials, associations have warned the data cannot be altered by a producer, even if they have “verifiable upstream emissions rates” that would “more accurately represent the project’s carbon intensity.”
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