Biden Administration Opens Door for Nuclear Industry Hydrogen Credits
The Biden administration has unveiled a plan allowing nuclear plants to earn tax credits for producing clean hydrogen, aiming to prevent reactor shutdowns.
Biden, Nuclear Power, Hydrogen, Tax Credits, Washington, USA
Washington: So, the Biden administration just dropped some news about nuclear power plants. They’re now able to snag tax credits for producing clean hydrogen. This move is all about keeping those reactors running instead of shutting them down.
These new rules are part of the Inflation Reduction Act, which aims to tackle climate change by supporting technologies that cut down greenhouse gas emissions. But, not everyone is on board with this. Some environmental groups think that nuclear shouldn’t be part of the clean hydrogen program since it could take away energy from the grid.
The Treasury Department mentioned that if we can keep a nuclear plant from closing, the extra demand for hydrogen won’t lead to more emissions elsewhere. They just released the final rules, making it easier for nuclear and other industries to benefit.
It’s a bit of a waiting game to see how the next administration, led by President-elect Donald Trump, will handle hydrogen production. Meanwhile, Frank Wolak from the Fuel Cell and Hydrogen Energy Association is optimistic about future discussions with Congress on how to push hydrogen development forward.
Under the new rules, if a nuclear reactor is at risk of shutting down, it can still earn credits for up to 200 megawatts of its power. John Podesta, a senior adviser to Biden, said these changes give hydrogen producers the certainty they need to keep their projects alive and help the U.S. lead in green hydrogen.
Right now, most hydrogen comes from fossil fuels, which is way cheaper than cleaner methods. The new rules also let natural gas plants that produce hydrogen get credits if they capture and bury their carbon emissions. The Treasury will figure out the credit values based on methane leakage during natural gas production, using a new climate model.