The future of clean hydrogen in the US could hinge on a new tax credit

Joe Biden visits the Cummins Power Generation Facility in Fridley, Minnesota, on Monday, April 3rd, 2023. Last year, Cummins announced Fridley would be the site of its first electrolyzer manufacturing facility in the US. | Photo by Elizabeth Flores/Star Tribune via Getty Images


The Biden administration proposed new tax guidelines today aimed at making it cheaper to produce hydrogen as a less-polluting alternative to fossil fuels. The tax credit comes with strict stipulations around using newly constructed sources of clean energy to produce hydrogen, as opposed to more polluting sources.


The guidelines elicited strong reactions from clean energy advocates and industry today, some celebrating, others outraged. Some experts said new guardrails are needed to ensure that the Biden administration’s push to develop a domestic supply chain for hydrogen doesn’t inadvertently increase pollution. Meanwhile, clean energy trade groups argued that the tax credit is now too restrictive to allow clean hydrogen production to…



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