Sign In or Create an Account.

By continuing, you agree to the Terms of Service and acknowledge our Privacy Policy

Economy

The Clean Hydrogen Rules Will Be Delayed Until at Least October

The Biden administration will miss a deadline in the Inflation Reduction Act, as it tries to regulate one of the climate law’s most generous —and contentious — tax credits.

Janet Yellen and hydrogen infrastructure.
Heatmap Illustration/Getty Images

The Biden administration is planning to publish rules governing one of the most generous subsidies in its new climate law — a tax credit for clean hydrogen — no earlier than October, missing a key deadline inscribed in the law, according to a source familiar with the process.

The rules revolve around one of the most contentious questions that has emerged after the law’s passage: How do you know that your electricity is clean? The debate has divided climate activists, hydrogen companies, renewable developers, and nuclear-power plant owners.

The ultimate answer could — by one estimate — determine the flow of more than $100 billion in federal subsidies over the next two decades.

The new rules could come as late as December, the source said, missing the deadline by as much as four months. The climate law required the Treasury Department publish guidance about the hydrogen tax credit within one year of its passage. Because the law was signed on August 16, 2022, that deadline will arrive next week.

Get one great climate story in your inbox every day:

* indicates required
  • Hydrogen is key to the Biden administration’s climate strategy. The colorless, odorless gas has the potential to replace fossil fuels in industries that are otherwise difficult to make climate-friendly, including steelmaking, shipping, aviation, and fertilizer production. While hydrogen does not emit any carbon when burned, today most hydrogen is made from natural gas in a carbon-intensive process.

    The new tax credit is designed to make cleaner production methods more competitive, and it offers the largest reward — $3 per kilogram of hydrogen — to companies that can make hydrogen without emitting almost any greenhouse gases at all.

    The issue before the Treasury Department is how companies should calculate their greenhouse gas emissions when trying to qualify for this credit. But there’s no universally accepted way to do this accounting. That is an especially big problem for a method of producing hydrogen called electrolysis, which uses electricity to split water into its constituent hydrogen and oxygen atoms. The process is incredibly energy-intensive, but it can be emissions-free, as long as the electricity comes from a carbon-free source.

    A major debate has erupted among energy companies, environmental groups, and academics over what should qualify as carbon-free electricity. Earlier this year, researchers from Princeton University’s ZERO Lab warned that the Treasury Department’s decision could risk a major increase in emissions, underwritten by billions of public dollars, if not crafted carefully. Most — but not all — of the nascent clean hydrogen industry has pushed back on their analysis, warning that onerous rules would “devastate the economics” of clean hydrogen.

    As we’ve previously reported, the complicated tax credit could transform the nuclear power sector and America’s energy economy writ large. It could also drive the formation of a booming domestic clean-hydrogen industry — but only if the Biden administration gets it right.

    Read more about the hydrogen rules:

    The Green Hydrogen Debate Is Much Bigger Than Hydrogen

    Yellow

    You’re out of free articles.

    Subscribe to access Heatmap’s expert analysis of climate change, clean energy, and sustainability. Save $57 on an annual subscription, just $156 $99/year.
    To continue reading
    Create a free account or sign in to unlock more free articles.
    or
    Please enter an email address
    By continuing, you agree to the Terms of Service and acknowledge our Privacy Policy
    Daily Briefing

    What Worries Me Most About This Wildfire Smoke

    We didn’t know days like this could happen. Then we learned how bad they really are.

    Wildfire smoke.
    Heatmap Illustration/NOAA

    When I woke up this morning in Chicago, the Air Quality Index was in the 300s, and I could barely see the top of the skyscraper across the street. The weather app on my phone featured a little image of a man wearing a World War I-style full-face gas mask. That’s fun, I thought. I didn’t know it could do that.

    I went downstairs. Old photographs of the city were hanging in the hotel lobby — girls playing in bathing suits next to the lake — and I realized that the haze shrouding the old Lakeshore Drive condos was in fact haze, smoke, particulate matter, and not a lens artifact. It really used to be that smoky all the time, back before the Clean Air Act. Then I glanced up and saw that the haze out the window was far worse than the century-old pollution in the picture.

    Keep reading...Show less
    Blue
    Sparks

    Microsoft Sustainability Chief Hounded by Protestors at Seattle Climate Week

    “Microsoft, you can’t hide, we can see your dirty side!”

    Melanie Nakagawa.
    Heatmap Illustration/Getty Images, Katie Brigham

    Protestors interrupted one of the final sessions of PNW Climate Week — a conference that brings together climate leaders across Washington, Oregon, and British Columbia — objecting to Microsoft’s rising carbon emissions from data centers and partnerships with oil and gas companies. The company’s Chief Sustainability Officer Melanie Nakagawa was having a one on one conversation with GeekWire climate reporter Lisa Stiffler at Seattle’s City Hall when protestors carrying signs reading “Microsoft’s AI pollutes” and other slogans began shouting from the audience.

    I was there, having just moderated the prior panel on how to finance Washington’s clean energy ambitions. Early on there were some rumblings in the crowd from up front. “Climate leaders don’t build gas pipelines in Moses Lake,” was the first objection I heard clearly. It came shortly after Nakagawa kicked off the conversation by highlighting Microsoft’s partnership with sustainable aviation fuel startup Twelve, which recently opened its first commercial-scale SAF plant in Moses Lake, Washington. The tech giant has supported the project through a strategic investment from its Climate Innovation Fund, as well as an offtake agreement for the fuel that will help offset its emissions from employee travel.

    Keep reading...Show less
    Adaptation

    The East Coast’s New Forever Problem

    Smoke is back. Again. It’s time to make a plan.

    East coast smoke.
    Heatmap Illustration/Getty Images

    Heat kills more Americans than any other extreme weather event in the United States. But wildfire smoke — while not strictly “weather” — appears to kill even more. Current excess death estimates put American heat mortality at about 10,000 people per year, or possibly as high as 12,000. Recent studies on wildfire PM 2.5 exposure suggest a mortality of double that: 24,000 all-cause deaths every year.

    Needless to say, wildfire smoke is definitely not something you want to inhale if you can avoid it. (And really, you should try to.) But for the 115 million Americans in the Great Lakes and Northeast regions of the country who’ve been exposed to hazardous air from the fires in Ontario and Minnesota this week, there’s a chance that the damage is already done. According to a wildfire smoke mortality estimation tool from Cornell University’s School of Public Health and the Northeast Regional Climate Center, the total mortality for this smoke event could already be as high as 424 people so far, including nearly 100 in Michigan and more than 50 in both New York and Wisconsin.

    Keep reading...Show less