US to problem hydrogen credit score rule this week, with path to nuclear, sources say By Reuters

WASHINGTON/NEW YORK (Reuters) – The U.S. Treasury Division plans to problem steering later this week on learn how to entry tax credit for hydrogen manufacturing underneath the Discount Act of 2022 inflation, in response to two sources acquainted with the matter.

The long-awaited steering will pave the best way for hydrogen produced utilizing nuclear energy to entry credit, the sources informed Reuters, though particulars of that plan weren’t instantly clear.

The query of whether or not present nuclear energy vegetation must be eligible for the hydrogen subsidy has been a significant sticking level, with environmentalists arguing that solely hydrogen produced from new clear power sources ought to obtain these advantages. .

One of many sources mentioned the steering would doubtless be launched on Friday.

A spokesperson mentioned the Treasury Division was working to finalize the steering and the company was reviewing varied requests associated to the principles.

“Finalizing guidelines that can assist develop the clear hydrogen business whereas implementing the environmental safeguards established within the regulation stays a prime precedence for Treasury,” mentioned spokesperson Michael Martinez. “On this course of, we’re rigorously contemplating the numerous feedback we acquired on the proposed rules.”

In December 2023, the Treasury Division unveiled its proposed guidelines governing how power firms would qualify for credit underneath the regulation.

In its draft tips, the company mentioned the credit score can be between 60 cents and $3 per kilogram and can be primarily based on the life cycle greenhouse gasoline emissions of the electrical energy supply used within the hydrogen manufacturing.

Nuclear energy producers within the nation, which is just about carbon-free, have since lobbied the Biden administration to incorporate present reactors in this system.

The extent of inclusion of nuclear energy within the last guidelines will decide whether or not it’s commercially viable to spend money on hydrogen manufacturing, a supply mentioned.

Some potential tips may embody a restrict on the variety of credit-eligible megawatts allowed for present nuclear energy vegetation utilized in hydrogen manufacturing, one supply mentioned.