Full Title: Fueling Up: How to Make U.S. Clean Hydrogen Projects Happen - Overcoming the Obstacles Facing Developers and Utilities
Author(s): Daniel Archuleta, Gregory Len, Anne Loomis, and Mindy McGrath
Publisher(s): Troutman Pepper
Publication Date: June 25, 2024
Full Text: Download Resource
Description (excerpt):
In this report, the authors look at the factors guiding clean hydrogen development activity in the U.S. Clean hydrogen is an alternative to fossil fuels and can help cut carbon dioxide emissions in hard-toabate sectors such as chemical production and transportation. This is why the federal government has sought to support the growth of clean hydrogen with large policy announcements in recent years, including production tax credits (PTCs) made available by the IRA and billions of dollars in funding to support the development of regional hydrogen hubs and to stimulate demand.
However, developers face a series of obstacles as they seek to take projects to financial close, which is the vital point in a project’s development cycle when it shifts from planning to execution. These challenges include needing clarity on PTCs under the proposed Section 45V rules from the Internal Revenue Service (IRS); needing greater demand for clean hydrogen; and the need to secure other vital infrastructure.
This report shares insights from leading market experts about the state of clean hydrogen in the U.S. and steps needed to move early projects into utility-scale schemes. These experts reflect on the opportunities and challenges presented by accelerating the growth of clean hydrogen, the impacts of policy and regulatory support announced in the last three years, and how federal and state policymakers can further boost production and demand.