US Spending Bill Boosts Clean Energy
By: GenH2 Staff
Read Time: 2 minutes
US Senate Passes Sweeping Spending Bill with Billions Going Toward Clean Energy
On Sunday, August 7, 2022, the United States Senate passed what many are calling “the most important climate bill in U.S. history”. The flagship economic package would invest roughly $370 billion in renewables, electric vehicles, hydrogen, clean energy equipment manufacturing, home efficiency and other climate programs. It is set to boost the nation’s hydrogen economy in the form of tax credits. The Inflation Reduction Act holds a landmark Tax and Climate Bill, offering $3 per kg in tax credits for low hydrogen production, which could make the clean energy carrier cheaper than grey produced hydrogen.
Set at a basic rate of $0.60/kg, the Bill will use a scale of credit calculation based on lifecycle emissions (measured in carbon-dioxide equivalent), offering hydrogen manufactured with 0.45-1.5kg, 1.5-2.5kg, and 2.5kg of lifecycle emissions the chance to collect 33.4%, 25% and 20% of the credits respectively. Aside from credits for production, the Bill also offers a revision to the electric vehicle tax credit to include hydrogen fuel cell-electric vehicles, with up to $7,500 available for new vehicles and $4,500 for used vehicles.
GenH2 is pleased with the Bill but does have some concerns. “We really excited about the package and the fact that steps are being made,” said GenH2. “However, there are two pieces that are missing, in order to reach a long-term successful hydrogen economy. Those are 1. A mandated trickledown requirement in the bill so that the funds will reach smaller pure play hydrogen companies, and 2. Incentives for the larger companies to grow the hydrogen economy and achieve long-term success.”
“With the passing of the Bill, I anticipate there will only be a small trickle-down effect which means the key will be how companies can work together, understand funds, and explain both the short-term and long-term value.”
GenH2 believes that a portion of funds from the bill needs to go to companies that are doing advanced research and commercialization to help get hydrogen to the market as soon as possible, like GenH2. “We have so many ideas and ways to create hydrogen,” said GenH2, “and the only way an optimal solution can be created is if a lot of people doing independent research come together. We need to get out of our space, reach out to other people, show people that this is real, and that this is a good thing for the planet, for our children and for our future.”
This is a huge step forward for clean energy, but the bill still needs to pass the House of Representatives and be signed by the president before it becomes law.
