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

The Trump Administration Is Now Delaying Renewable Projects It Thinks Are Ugly

The Army Corps of Engineers is out to protect “the beauty of the Nation’s natural landscape.”

Donald Trump, wetlands, and renewable energy.
Heatmap Illustration/Getty Images

A new Trump administration policy is indefinitely delaying necessary water permits for solar and wind projects across the country, including those located entirely on private land.

The Army Corps of Engineers published a brief notice to its website in September stating that Adam Telle, the Assistant Secretary of the Army for Civil Works, had directed the agency to consider whether it should weigh a project’s “energy density” – as in the ratio of acres used for a project compared to its power generation capacity – when issuing permits and approvals. The notice ended on a vague note, stating that the Corps would also consider whether the projects “denigrate the aesthetics of America’s natural landscape.”

Keep reading...Show less
Yellow
Hotspots

A Data Center Dies in Wisconsin

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

The United States.
Heatmap Illustration/Getty Images

Dane County, Wisconsin – The QTS data center project we’ve been tracking closely is now dead, after town staff in the host community of DeForest declared its plans “unfeasible.”

  • As I previously explained to Fight readers, this QTS project was a quintessential data center conflict. Not only was it situated in a blue county inside of a purple state, but a recent imbroglio over emails between the village mayor and QTS have made it a key example of how private conversations between tech companies and local governments can tarnish the odds of getting a data center permitted.
  • Late Tuesday, DeForest town staff issued a public statement disclosing they would recommend rejecting QTS’ petition to annex land for construction, without which the developer can’t build. A vote on whether to formally deny the petition was scheduled for February 3.
  • If the town rejects the project, the statement reads, DeForest staff expect QTS to “formally withdraw” its request for changes to land zoning plans and the annexation application. The town also cited vociferous opposition to the project, declaring: “The Village of DeForest appreciates the dedicated engagement of our community. Engagement is at the core of democracy. Reviewing public information, participating in public meetings, and discussing potential opportunities and impacts are all important civic activities.”
  • I was prepared to wait and see what happened at the public meeting before declaring this project dead in the water, but QTS itself has gone and done it : “Through our engagement, it has become clear that now is not the right time for our proposed project to move forward in DeForest.”

Marathon County, Wisconsin – Elsewhere in Wisconsin, this county just voted to lobby the state’s association of counties to fight for more local control over renewable energy development.

Keep reading...Show less
Yellow
Q&A

How Data Centers Became an Election Issue in Georgia

A conversation with Georgia Conservation Voters’ Connie Di Cicco.

The Q&A subject.
Heatmap Illustration

This week’s conversation is with Connie Di Cicco, legislative director for Georgia Conservation Voters. I reached out to Connie because I wanted to best understand last November’s Public Service Commission elections which, as I explained at the time, focused almost exclusively on data center development. I’ve been hearing from some of you that you want to hear more about how and why opposition to these projects has become so entrenched so quickly. Connie argues it’s because data centers are a multi-hit combo of issues at the top of voters’ minds right now.

The following conversation has been lightly edited for clarity.

Keep reading...Show less
Yellow