The Green Blueprint
The Latitude: Could government rules hinder green hydrogen?
Mar 22, 2024
Explore the US green hydrogen industry's reaction to government rules for tax credits, with mixed responses on matching renewables to hydrogen production. Hear about the impact on projects, cancellation of some, and challenges faced by developers. Delve into the implications of Treasury Department guidance and the complexities involved in green hydrogen production in the US, including hurdles like high costs, lack of renewable energy tracking systems, and differing opinions on proposed guidelines.
23:00
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Quick takeaways
- Proposed rules demand green hydrogen production with strict renewable matching, leading to project cancellations.
- Industry faces challenges meeting hourly matching requirements for hydrogen production, affecting project feasibility and cost competitiveness.
Deep dives
US Green Hydrogen Industry at a Critical Juncture
The US green hydrogen industry faces a critical juncture with new draft rules for tax credits setting strict requirements for renewable matching to hydrogen production. While hailed as crucial by some, the reaction across the industry has been mixed. The rules demand creating green hydrogen using new renewables in the same grid region as the electrolyzers and time matching annually and eventually hourly, posing challenges that led to project cancellations.
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