Electricity produced by fossil fuel-powered generators that have been equipped with CCS within a three-year window before hydrogen production starts will be considered eligible.
Beyond 2030, once hourly matching has been put in place, producers will be able to opt for an “hourly accounting option” to determine electricity-related lifecycle emissions on an “hour-by-hour basis” provided hydrogen produced still meets 45V’s limit of 4kg of CO2/kg of hydrogen.
The major backtrack from rules that had been described as stringent and restrictive by many comes after the Treasury received around 30,000 public comments.
“These rules incorporate helpful feedback from companies planning investments which will drive significant deployment of clean hydrogen to power heavy industry and help create good-paying jobs,” said Deputy Secretary of the Treasury, Wally Adeyemo.
U.S. Department of the Treasury Releases Final Rules for Clean Hydrogen Production Tax Credit
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