Air Products has strongly backed the US Treasury’s recent move to restrict the green subsidies that are available to hydrogen producers under the country’s 2022 Inflation Reduction Act only to those projects that are powered by renewables every hour.
The updated guidance was published in late December 2023 and prompted some disappointed developers to argue that the rules would stymie a still-nascent industry.
The guidance limits the $3-per-kilo credit to hydrogen that is made only from new clean energy projects, such as solar and wind, that are connected to the same regional grid as the hydrogen producer. It also imposes a strict interpretation of how developers prove their green hydrogen is clean.
Air Products Chairman, President and CEO Seifi Ghasemi said, “We absolutely disagree with that point of view that this is limiting. I mean, how is this limiting? We are complying with every single part of what the Treasury Department has put out … and we are committing billions of dollars to build these facilities. Other people can do the same.”
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