The US Treasury on Friday (December 22) released its much-anticipated guidance for the Inflation Reduction Act’s (IRA’s) 45V Clean Hydrogen Production Tax Credit, laying out criteria for hydrogen producers to access tax credits of up to $3/kg.
For electrolytic hydrogen producers, the rules include the controversial “three-pillar” requirements of additionality, hourly and geographical correlation – following suit of the EU to ensure only clean electricity can be used to producer green hydrogen.
Under the original IRA text, the PTC is due to implemented in a tiered approach based on lifecycle emissions – with the lowest emissions receiving the $3/kg tax credit.
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