Hydrogen hubs pan ‘overly restrictive’ Biden tax credit rules

By Christian Robles | 02/27/2024 06:14 AM EST

The regional hubs, which stand to receive $7 billion from DOE, said many projects wouldn’t be economically viable under Treasury’s proposed guidance.

A hydrogen pumping station.

A hydrogen pumping station for hydrogen-powered cars is shown in Berlin. Sean Gallup/AFP via Getty Images

All seven of the Department of Energy’s planned hydrogen hubs are calling on the Treasury Department to change its proposed rules for the clean hydrogen production tax credit.

In a joint letter, the leaders of the hubs argued that the Treasury guidance is “overly restrictive” and would prevent many of the hubs’ projects from being realized. DOE plans to fund the regional hubs — which are helmed by a mix of private sector groups and state governments — with $7 billion from the climate law.

“Each of our hubs has a range of ambitious projects aimed at accelerating the clean hydrogen industry, fostering economic growth, creating good-paying American jobs, and advancing environmental justice,” the leaders wrote, later adding: “Unfortunately, these investments and jobs will not fully materialize unless Treasury’s guidance, in its current form, is significantly revised, as many of the projects generating these investments and supporting jobs will no longer be economically viable.”


The hubs are part of the Biden administration’s efforts to cut planet-warming emissions, with a goal of producing 10 million metric tons of “clean” hydrogen annually by 2030. The hope is that the gas could fuel up to a fifth of the U.S. economy, helping it reach net-zero emissions by 2050. DOE has said the hubs will support more than 330,000 direct jobs while reducing carbon dioxide emissions by 25 million metric tons annually.