Electric utilities are looking to green hydrogen as a tool to help alleviate over-congested grids and renewable energy curtailment. But what makes hydrogen “green?”
The U.S. Internal Revenue Service (IRS) will soon issue its much-anticipated guidance on what qualifies for the new green hydrogen tax credits in the Inflation Reduction Act (IRA) passed last year.
The law provides for up to $3 per kilogram of green hydrogen. The new law set a threshold of 0.45 kilograms of carbon dioxide emissions per kilogram of hydrogen, but we don’t know yet which power purchase agreement (PPA) contract structures will qualify.
