U.S. to unveil hydrogen subsidy guidance post-COP28, aiming to boost green hydrogen production and decarbonization efforts.

The U.S. is set to release crucial guidance on securing hydrogen subsidies embedded in the Inflation Reduction Act (IRA). The guidance, expected post the COP28 climate conference in Dubai, aims to unlock billions of dollars in subsidies for green hydrogen production. The Biden administration views hydrogen as a crucial part of decarbonization efforts, particularly in sectors like aluminum and cement. The subsidies aim to kickstart the green hydrogen industry with an $3 per kilogram incentive. While green hydrogen is currently limited due to high costs, these subsidies could pave the way for a significant increase. The Department of Energy has earmarked $7 billion for seven proposed regional “hydrogen hubs” which include existing nuclear plants.