The U.S. Treasury Department plans to release long-awaited guidance later this week on accessing tax credits for hydrogen production under the 2022 Inflation Reduction Act, according to sources familiar with the matter.
The guidance will clarify how hydrogen produced using nuclear power could qualify for the credits. A key point of contention has been whether existing nuclear plants should be eligible, with environmentalists arguing that only hydrogen derived from new clean energy sources should benefit from the subsidy.
Treasury spokesperson Michael Martinez emphasized the agency’s focus on scaling the clean hydrogen industry while ensuring compliance with environmental safeguards. “We are carefully considering the numerous comments received on the proposed regulations,” he said.
In December 2023, the Treasury introduced draft rules proposing credit values ranging from 60 cents to $3 per kilogram, depending on the greenhouse gas emissions from the energy source used in hydrogen production. Nuclear power producers have since pushed for the inclusion of existing reactors, citing their near-zero carbon emissions.
The final decision, expected as early as Friday, will determine the feasibility of significant investments in hydrogen production using nuclear energy.
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