The Fight

Sign In or Create an Account.

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

Q&A

Trump’s Hydrogen Mystery

A conversation with Frank Wolak of the Fuel Cell and Hydrogen Energy Association.

Frank Wolak.
Heatmap Illustration

We’re joined today by Frank Wolak, CEO of perhaps the most crucial D.C. trade group for all things hydrogen: the Fuel Cell and Hydrogen Energy Association. The morning after Election Day we chatted about whether Trump 2.0 will be as receptive as members of Congress have been to hydrogen and the IRA’s tax credit for producing the fuel. Let’s look inside his crystal ball, shall we?

Simply put, will president-elect Donald Trump keep the IRA’s 45V tax credit in place?

So a couple things there. First, the production tax credit still has to be finalized and what they do about the tax credits, if anything, is a function of whether the Biden administration issues final guidance.

If they issue final guidance, then what that guidance says will determine what kind of reaction the Trump administration may have, whether to adjust it or tweak it.

The second thing: I think the tax credits fit into a question of the IRA broadly and hydrogen specifically. The Trump administration is going to be looking at the entirety of the IRA. There’s the question of what pushback hydrogen has in this administration and if it’s viewed as valuable or important or secondary, tertiary to other things. And I think we’ve yet to see that in the form of any platform.

So Trump’s view on hydrogen is a mystery then – how will that uncertainty impact hydrogen projects in development today?

The uncertainty that has been experienced by this industry predates the election outcome. The long wait for guidance has definitely slowed down the amount of investment. They’ve put many things on hold. This is not a secret.

What I’ll say is, the ability to regroup and fulfill the expectations that this industry had two or three years ago is hugely dependent on the outcome of the tax credit.

What do you think we’ll see companies do in this information vacuum? Will we see them double down on supporting the credit or potentially get out of hydrogen since it’s an emerging, nascent technology?

The doubling down on the tax credit depends on what the guidance looks like.

If the guidance looks flexible, the question is: how do you take that flexibility and make sure the Trump administration continues it and sees it as valuable or vital?

If the tax credit becomes rigid and stays rigid in the Biden administration, you’ll have a two step process – to unwind the rigidity and then also encourage the Trump administration to see the merits. If the guidance stays as stated, the work is harder.

The degree to which industry continues to make investments and says, “hey, we’re all in,” is a function of how these tax credits emerged. Are they going to really keep fighting and to keep the momentum going, or are the [credits] so limited that companies go, “look this is going to be very very hard to overcome in the U.S. so we’re going to take our investment elsewhere.”

You think we might see companies dip out of the hydrogen space over the credit’s outcome?

Mature long term players who are multinationals … are remaining extremely positive. They may adjust the sequence of their investments but they’re in this because they’re in hydrogen and want to be in this market as much as possible.

But those who saw this as an opportunity to come in and take advantage of tax credits are having those reactions of, “Should I invest? Do I look [at it] positively?” And that’s probably natural.

This article is exclusively
for Heatmap Plus subscribers.

Go deeper inside the politics, projects, and personalities
shaping the energy transition.
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
Spotlight

Secrecy Is Backfiring on Data Center Developers

The cloak-and-dagger approach is turning the business into a bogeyman.

A redacted data center.
Heatmap Illustration/Getty Images

It’s time to call it like it is: Many data center developers seem to be moving too fast to build trust in the communities where they’re siting projects.

One of the chief complaints raised by data center opponents across the country is that companies aren’t transparent about their plans, which often becomes the original sin that makes winning debates over energy or water use near-impossible. In too many cases, towns and cities neighboring a proposed data center won’t know who will wind up using the project, either because a tech giant is behind it and keeping plans secret or a real estate firm refuses to disclose to them which company it’ll be sold to.

Keep reading...Show less
Yellow
Hotspots

Missouri Could Be First State to Ban Solar Construction

Plus more of the week’s biggest renewable energy fights.

The United States.
Heatmap Illustration/Getty Images

Cole County, Missouri – The Show Me State may be on the precipice of enacting the first state-wide solar moratorium.

  • GOP legislation backed by Missouri Governor Mike Kehoe would institute a temporary ban on building any utility-scale solar projects in the state until at least the end of 2027, including those currently under construction. It threatens to derail development in a state ranked 12th in the nation for solar capacity growth.
  • The bill is quite broad, appearing to affect all solar projects – as in, going beyond the commercial and utility-scale facility bans we’ve previously covered at the local level. Any project that is under construction on the date of enactment would have to stop until the moratorium is lifted.
  • Under the legislation, the state would then issue rulemakings for specific environmental requirements on “construction, placement, and operation” of solar projects. If the environmental rules aren’t issued by the end of 2027, the ban will be extended indefinitely until such rules are in place.
  • Why might Missouri be the first state to ban solar? Heatmap Pro data indicates a proclivity towards the sort of culture war energy politics that define regions of the country like Missouri that flipped from blue to ruby red in the Trump era. Very few solar projects are being actively opposed in the state but more than 12 counties have some form of restrictive ordinance or ban on renewables or battery storage.

Clark County, Ohio – This county has now voted to oppose Invenergy’s Sloopy Solar facility, passing a resolution of disapproval that usually has at least some influence over state regulator decision-making.

Keep reading...Show less
Yellow
Q&A

Why Environmental Activists Are Shifting Focus to Data Centers

A conversation with Save Our Susquehanna’s Sandy Field.

Sandy Field.
Heatmap Illustration

This week’s conversation is with Sandy Field, leader of the rural Pennsylvania conservation organization Save Our Susquehanna. Field is a climate activist and anti-fossil fuel advocate who has been honored by former vice president Al Gore. Until recently, her primary focus was opposing fracking and plastics manufacturing in her community, which abuts the Susquehanna River. Her focus has shifted lately, however, to the boom in data center development.

I reached out to Field because I’ve been quite interested in better understanding how data centers may be seen by climate-conscious conservation advocates. Our conversation led me to a crucial conclusion: Areas with historic energy development are rife with opposition to new tech infrastructure. It will require legwork for data centers – or renewable energy projects, for that matter – to ever win support in places still reeling from legacies of petroleum pollution.

Keep reading...Show less
Yellow