Xcel Energy’s plans to establish a significant hydrogen production hub in Minnesota may be jeopardized due to preliminary federal tax credit rules. The Minneapolis-based company argues these rules could significantly slow the development of a hydrogen economy. The rules relate to whether Xcel could qualify for credits by using unused wind power and one of its nuclear plants to create hydrogen. Xcel Energy is part of the “Heartland Hydrogen Hub” which was selected for $7 billion in federal funding from the 2021 infrastructure law. However, Xcel and other Hub organizers have expressed concerns that limitations on the separate 10-year tax credits from the 2022 Inflation Reduction Act could make hydrogen projects uncompetitive. Many environmental groups support Treasury guidance on using existing power, arguing that using it would increase carbon emissions. They also doubt the idea that nuclear plants are ready to close without the hydrogen tax credit.
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
