Nikola Corp (fka NKLAQ)

[WeTheMarket]

DNU, Manchin is arguing for all types/colors of hydrogen. The additionality (new source of power) and power matching (the time to power hydrogen production has to match the time the power was generated) requirements affect all colors of hydrogen. For example, the additionality requirement, would affect pink hydrogen the most, that is the hydrogen produced using the excess power and heat from nuclear power plants, since they haven't built a new reactor in the US in decades, and by the time the next new nuclear power plant will be built, the subsidies will have expired. Similarly, green hydrogen produced using hydroelectric power from dams would not qualify based on these draft rules, because the dams were built many years ago.

Manchin is arguing from a strong position, as he was a major contributor to forging the IRA clean hydrogen production credits (PTC), which were signed into law last August 2022, and he stated that these proposed regulations were never discussed and were not the intent of the IRA. Thus Manchin and other lawmakers are arguing that these draft guidelines are not only too strict and not the intent of the IRA, but since the IRA was signed into law last fall, they argue that they are illegal or against the law, and are threatening lawsuits.