The U.S. Treasury Department plans to release guidance later this week on accessing H₂ production tax credits under the 2022 Inflation Reduction Act, according to sources. The guidance is expected to allow H₂ produced with nuclear power to qualify for the credits, addressing a contentious debate about including existing nuclear plants. Environmentalists have argued that only H₂ from new clean energy sources should be eligible.

The Treasury Department aims to finalize rules that balance scaling the clean H₂ industry with environmental safeguards. Proposed regulations from December 2023 outlined credit values ranging from 60 cents to $3 per kilogram, based on the lifecycle emissions of the energy source used. Nuclear power producers, noting its near-zero carbon emissions, have lobbied for the inclusion of existing reactors.

The final decision on including nuclear power will impact the commercial viability of H₂ production. Possible guidelines may limit the megawatts from existing nuclear plants that qualify for the credits. The guidance is expected to be released by Friday.

Source: Reuters

For more information, visit: https://www.reuters.com/sustainability/climate-energy/us-issue-H2-credit-rule-this-week-with-path-nuclear-sources-say-2024-12-31/