The U.S. clean hydrogen sector is set for significant growth, with strong backing from the Inflation Reduction Act (IRA) and the Bipartisan Infrastructure Law (BIL), which provide tax credits and billions in funding for clean hydrogen projects. However, the industry faces regulatory uncertainty, particularly around the Internal Revenue Service and U.S. Department of the Treasury's proposed rules for the Section 45V tax credit, which imposes strict criteria for hydrogen production. Clear and consistent regulations, especially in areas like hydrogen pipeline transport and tax incentives, are essential to building investor confidence and accelerating the development of hydrogen infrastructure.
Additionally, the industry needs robust certification standards to ensure transparency and credibility in hydrogen production and usage. Establishing clear policies will be key to driving market demand, both domestically and internationally, while fostering innovation through hydrogen hubs and regional collaborations. With proper regulatory frameworks, hydrogen can play a transformative role in decarbonizing hard-to-abate industries and positioning the U.S. as a global leader in the clean energy transition.
Read more here: https://www.powermag.com/unlocking-americas-clean-hydrogen-potential-navigating-policy-challenges-and-market-opportunities/