A letter addressed to US congressional leaders highlighted the critical role of Section 45V tax credits in driving the growth of the hydrogen industry, positioning the nation for “global energy dominance.”
Sent today (February 18) by a coalition of businesses and organisations representing the American hydrogen industry, the letter said the sector has been “hamstrung by delays in the regulatory guidance for this credit by the Biden Administration” over the past two and a half years.
Read more:US Treasury relaxes 45V hydrogen tax credit rules and opens nuclear pathway
The letter added, “With the final rulemaking just being issued this January, our industry is now poised to invest billions of dollars in deployments and manufacturing facilities across the country.
“However, that private sector investment is at risk due to the uncertainty around this crucial incentive. There are hundreds of companies and thousands of jobs at stake for this sector, and without this tax incentive, many of these deployments, jobs, and opportunities will shift from the US to countries around the world.
“We need to ensure that we do not miss this hydrogen moment and respectfully request that you maintain the Section 45V tax credit.”
The document noted that the domestic hydrogen sector has the potential to create 700,000 jobs by 2030 and generate $140bn in revenue.
Furthermore, the letter cautioned against China’s growing influence in the hydrogen sector, stating, “China has made global leadership in clean hydrogen a priority, as evidenced by their investments, particularly in the manufacturing of hydrogen production technologies.
“American policy – including clear and effective incentives like 45V – will help determine whether the US leads or cedes investment and manufacturing to global competitors.”
The industry had a strong and mixed reaction a month ago when the final rulings were announced just before President Trump’s inauguration, with some welcoming the changes and others voicing concerns.
Marty Durbin, President of the US Chamber of Commerce Global Energy Institute, argued that the final 45V rule “falls short.”
Read more:Analysis: Industry praises 45V hydrogen tax credit clarity, but concerns linger
“While the rule provides some of the additional flexibility we sought, especially in recognising the importance of natural gas as a cornerstone of a hydrogen economy, we believe that it still will leave billions of announced projects in limbo,” Durbin said.
“The incoming administration will have an opportunity to improve the 45V rules to ensure the industry will attract the investments necessary to scale the hydrogen economy and help the US lead the world in clean manufacturing.”
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