The Hydrogen Stream: Proposed US tax credit could support US hydrogen

The US House of Representatives is set to vote on a bill this week that could provide a new production tax credit for green hydrogen production, while the European Commission has approved plans to support renewable hydrogen in Romania.
NREL’s heavy-duty hydrogen fueling station
Image: Joe DelNero, NREL

The US House of Representatives is scheduled to vote on a bill this week that could eventually help several states, including California, to become some of the world’s cheapest sources of green hydrogen. Last week, the US Senate passed the Inflation Reduction Act, which proposes $369 billion in energy spending, including a new production tax credit to cover the first 10 years of operation for qualified clean hydrogen production facilities. The base credit amount would be $0.60/kg, multiplied by an “applicable percentage” defined as a function of greenhouse gas emission rates. The credit could be five times the base credit amount, up to $3/kg, if the hydrogen is produced according to key requirements. Electric vehicles and carbon capture and sequestration are also poised to benefit from the proposed legislation.

SAIC Motor has revealed plans to put 410 fuel cell vehicles into operation in Shanghai, in pursuit of its aims to put more than 10,000 such vehicles into service by 2025. In addition, the Chinese state-owned automotive manufacturer said that it would launch at least 10 new fuel cell models by 2025.

Korea Gas Corp. (Kogas) has signed a memorandum of understanding (MoU) with US industrial engineering contractor Oklahoma-based Matrix Service Co. to develop new technology to support onshore large-scale liquid hydrogen storage in South Korea. “The agreement also supports the development of solutions that will allow transportation of greater volumes of hydrogen by transport ship,” said Oklahoma-based Matrix Service. Kogas is reportedly seeking new tech for hydrogen shipping, storage, and distribution.

Advent Technologies has signed an MoU with Greek gas supplier DEPA, potentially setting the stage for a forthcoming agreement. The two companies want to team up in several areas, including the production of low-carbon hydrogen and the creation of a hydrogen and fuel cell innovation center in Greece. In addition, they said they aim to jointly develop a proprietary combined heat and power system “ready for mass production with efficiency approaching 90% and with multi-fuel operating capabilities (hydrogen, natural gas, efuels).”

Anglo American has revealed plans to build on-site solar plants and off-site wind farms in South Africa to “provide the foundation for green hydrogen production” to power its haul trucks. In its first-half earnings report, the company said it aims to replace its global fleet with hydrogen trucks over the next decade. It currently operates around 400 diesel cargo vehicles.

The European Commission has approved a €149 million ($152.6 million) scheme in Romania to to support renewable hydrogen production. The plans will be executed under the EU Recovery and Resilience Facility.

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