A dispatch from the dawn of the green hydrogen era

[Think. Again.]

Canary gets a firsthand look at electrolyzer maker Verdagy’s pilot line. It’s one of many companies hoping to cash in on lucrative new subsidies for fossil-free hydrogen.

24 July 2023
Eric Wesoff, Canary Media
Full article: https://www.canarymedia.com/articles/hydrogen/a-dispatch-from-the-dawn-of-the-green-hydrogen-era


The interior of Verdagy's pilot plant in Moss Landing, Calif. (Verdagy)

MOSS LANDING, California — A green hydrogen boom is about to jolt American heavy industry, and it’s all thanks to a set of tax incentives that are wildly generous, wickedly complex — and still not fully finalized.

Hydrogen is carbon-free if produced with renewable energy, and some experts see it as the key to decarbonizing certain ​“difficult-to-abate” industries. As of now, the fuel exists more in clean-energy models than in the real world, as almost all hydrogen is currently made with fossil gas.

But now we may be at the dawning of the green-hydrogen economy, as tens of billions of dollars in Inflation Reduction Act incentives encourage both startups and established companies to invest in driving down the cost of generating the carbon-free fuel.
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The clean-hydrogen production tax credit in the IRA is ​“incredibly rich,” said Jane Sadler, an associate at think tank RMI’s U.S. program, during a recent webinar. (Canary Media is an independent affiliate of RMI.)

“It’s definitely going to change the landscape of hydrogen,” she added. ​“Unlike some tax credits in the IRA, the uncapped hydrogen incentive is available as direct pay (rather than a credit) to any applicant for five years and 10 years to tax-exempt applicants.”

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Much more at: https://www.canarymedia.com/articles/hydrogen/a-dispatch-from-the-dawn-of-the-green-hydrogen-era