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.
