Xcel Energy warns hydrogen tax credit rules could jeopardize Minnesota’s major hydrogen production hub plans.

Xcel Energy and the University of North Dakota have warned that preliminary rules for a hydrogen production tax credit could put plans for a major hydrogen production hub in Minnesota at risk. The company is part of the “Heartland Hydrogen Hub” which also includes North Dakota, South Dakota, Wisconsin and Montana, one of seven regional hubs selected last year for $7 billion in federal funding from the bipartisan 2021 infrastructure law. However, Xcel may have to scale back or cancel plans to use unused wind power and one of its two Minnesota nuclear plants to create carbon-free hydrogen. The rules have been controversial among industry and environmental groups, with Xcel arguing that they would not be enough to make its hydrogen projects competitive.