During the IRA 45V hearing on the clean hydrogen production tax credit, stakeholders emphasized the need for the IRS to adopt flexible metrics to accurately measure greenhouse gas emissions. Roxana Bekemohammadi said, "We unfortunately cannot rely on batteries to store energy to fill in these gaps [caused by solar and wind facilities] due to the lack of technological advancements for duration, scale, power and supply of batteries." Others highlighted that various energy sources like coal, nuclear, and renewables are already producing low-emission hydrogen. However, the current proposed rules could restrict these operations from claiming the tax credit.
Critics of the proposed rules argue that they are overly stringent and could hinder the hydrogen economy's growth, especially in regions like Appalachia, where the rules do not consider the local abundance of methane from coal mines. Concerns were also raised about the treatment of renewable natural gas in the proposed rules, with critics arguing that it demonstrates a misunderstanding of the resource's renewable nature. This article also features quotes from Matthew Small, Director of Project Development and Policy for StormFisher Hydrogen Ltd., Shawn Bennett of the Appalachian Regional Clean Hydrogen Hub, and Patrick Serfass, Executive Director at the American Biogas Council.
Read more here: https://www.law360.com/tax-authority/federal/articles/1817459/producers-push-irs-for-flexible-clean-hydrogen-credit-regs