Like many parts of US policy, the Inflation Reduction Act’s (IRA) proposed rules for the section 45V clean hydrogen production tax credit (PTC) have been extremely polarised.

The proposal, unveiled last December, offered what proponents believe will provide guiderails for the US clean hydrogen industry to deliver emissions reduction, using taxpayer dollars effectively.

On the other hand, it’s been no secret that critics say the three pillars of additionality, temporal correlation and geographic correlation will make it harder and more expensive to produce green hydrogen – somewhat absorbing the up to $3/kg tax credit.

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