US releases rule ensuring only green hydrogen gets $3/kg tax credit

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Solar reactor uses solar thermal energy to split water to hydrogen

Source: Hydrogen Insight

The US government has finally unveiled its long-awaited proposed rules on clean hydrogen production, determining the criteria that developers will have to meet in order to qualify for the hydrogen tax credit of up to $3 per kilogram.

The proposed guidelines closely match the draft version that was leaked to the press earlier this month, including the controversial requirements for additionality, hourly matching and geographical correlation (see panel below) — measures already introduced in the EU to ensure that fossil-fuel-fired power cannot be used directly or indirectly to produce green hydrogen.

Green hydrogen projects in the US will have to source power input from renewables assets on the same regional grid that have been installed within three years of H2 production starting.

However, while the EU allows…

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