Biden recently released a proposal on subsidies for the hydrogen energy industry, aiming to promote the development of renewable energy and its technologies in the United States through tax credit incentives. However, the proposal has been criticized by clean energy companies for its strict subsidy criteria, arguing that it could hinder the development of a key industry.
White House climate adviser John Podesta expressed the importance of the proposal to **, emphasizing that the clean hydrogen tax credit is a key strategy to drive private investment across sectors, build a clean energy economy, and combat the climate crisis. Officials say the proposal is the best way to boost the hydrogen industry without increasing emissions, and it was developed in coordination with the Environmental Protection Agency and the Department of Energy.
Still, Biden** has yet to give a clear answer on how much subsidy hydrogen made from the electrolysis of nuclear power and some renewable energy sources will receive. At present, it has only said that it will solicit feedback from relevant power generation companies in the next two months. This uncertainty has raised concerns among nuclear power producers. Three of the seven Clean Hydrogen Centers supported by the U.S. Department of Energy use nuclear energy to produce hydrogen. But building new nuclear power plants faces high costs and delays.
Business groups, including the U.S. Chamber of Commerce, have also criticized the new hydrogen subsidy rules, arguing that they will slow down the construction of a hydrogen economy. In addition, producers must prove hourly that the electricity used in their electrolyzers comes from new renewable energy projects, a requirement that has sparked controversy. The U.S. Treasury Department is asking companies to implement such a program starting in 2028, earlier than many companies and industry organizations would expect.
While the hydrogen subsidy proposal has not yet become final rule, it will still go through a 60-day comment period and public hearings, giving companies the opportunity to make their comments. But for now, the strict standards in the proposal have caused widespread concern and dissatisfaction in the industry, which may hinder the development of the hydrogen industry and pose a challenge to the construction of a clean energy economy in the United States.
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