Sunday, November 28, 2021 8:38:07 PM
The cleaner the hydrogen produced, the higher the tax credit received by producers — a move that could make green H2 derived from renewable energy cheaper than highly polluting grey hydrogen made from unabated methane. Green hydrogen is said to cost $2.50-6/kg, compared to $1-2/kg for grey — although the latter will depend on the natural gas price. So a $3/kg subsidy on green H2 could really shake up the US hydrogen market.
The House version of the bill states that only hydrogen with lifecycle greenhouse gas emissions of less than 0.45kg of carbon dioxide equivalent (CO2e) per kilo of H2 will be eligible for the full $3 credit, which is set to begin next year.
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