Energy Exchange

This blog was jointly authored by policy experts from Clean Air Task Force & Environmental Defense Fund. Our organizations share a common goal to maximize the climate benefits of clean hydrogen deployment, as well as reduce methane emissions from oil and gas operations. Individual sets of comments on the 45V hydrogen production tax credit from CATF and EDF have also been provided to the U.S. Department of the Treasury.

As the U.S. invests billions of dollars in clean hydrogen as a decarbonization solution, the 45V Clean Hydrogen Production Tax Credit stands to shape the future of the hydrogen industry and its potential impact on climate progress. 45V offers an incentive for producing clean hydrogen, regardless of method, so long as its greenhouse gas, or GHG,  intensity falls below a certain threshold — and the cleaner the hydrogen is, the more money producers can claim under the tax credit. 

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By Braulio A. Quintero

Seven years after hurricanes Irma and Maria made landfall on Puerto Rico in 2017, the island continues to struggle with a deficient electrical power infrastructure. Power outages are common, the price of electricity continues to increase and the reconstruction of the power grid is not happening fast enough. Power outages affect rural and urban communities in Puerto Rico and endanger the lives of the most vulnerable.

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By Grace Smith and Elizabeth Lieberknecht

The Biden administration just made another major investment in a cleaner, safer energy future for all Americans. On Friday, EPA and the Department of Energy announced applications are open for $850 million in funding to monitor and reduce methane emissions from the oil and gas sector.  

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By Ari Pottens and Scott Seymour

Canada recently released its latest estimate of greenhouse gas emissions which, for the very first time, includes atmospheric measurements of methane emissions taken from oil and gas facilities.

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By Morgan Rote and Chelcie Henry-Robertson

As the U.S. invests billions in deploying its hydrogen strategy with the goal of decarbonizing industry and reducing emissions, the 45V Clean Hydrogen Production Tax Credit is the big ticket item on the table aiming to kick-start the emerging hydrogen economy. Unsurprisingly, everyone wants a share of this financial incentive, and the details are being ironed out as we speak. But current loopholes in the rules are opening the door for the very real – if unintentional – prospect of boosting hydrogen that is not clean and will not reduce emissions. Here we lay out three accounting schemes that can be used to classify hydrogen as ‘clean’ but could actually worsen the climate if not addressed. To protect the integrity of our hydrogen decarbonization strategy, our taxpayer investments into new clean solutions, and our policies designed to do this, we have to ensure that the right safeguards are in place and these dangerous loopholes are closed. 

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By Anna Lorant and Guillaume Morauw

The European Hydrogen Bank, a financing instrument that supports renewable hydrogen production within the EU and internationally, has just announced a €1.2 billion investment to help boost the renewable hydrogen economy, a cornerstone of the EU’s strategy to achieve climate neutrality by 2050. While many are focusing on how this can help to meet hydrogen production targets, it’s important to remember that how we deploy hydrogen also matters. Whether or not hydrogen will actually deliver climate benefits depends on the detail, and that is why all eyes are on the Terms and Conditions  of the second Hydrogen Bank Auction, as a significant instrument to scale up the European hydrogen market.  

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