The proposed US federal tax credit program on hydrogen production has been questioned for its potential impact on the market growth of green hydrogen projects. The primary goal of the program is to stimulate the adoption of sustainable hydrogen production by offering financial incentives to producers. The $3/kg hydrogen production tax credit under the Inflation Reduction Act (IRA) aims to significantly reduce the cost barrier associated with green hydrogen production, promoting its widespread use as a clean energy source. The implementation of the tax credit is expected to facilitate the transition towards green hydrogen technologies, which use renewable energy sources such as solar and wind to power electrolyzers that extract hydrogen from water. However, the long-term viability of these projects will depend on market demand, regulatory framework, and technological advancements.
Solar Dominates US Energy Capacity Growth
The Federal Energy Regulatory Commission (FERC) has published data showing that solar accounted for over 75% of US electrical generating
