Finance Associated Press, December 28 (edited by Zhao Hao).On Tuesday (December 26) local time, Andy Marsh, president and CEO of Plug Power, said that the eligibility criteria in the US hydrogen subsidy proposal were "disappointingly strict", but he expected the final version of the restrictions to be much looser.
It is understood that Prager Energy, which is in charge of Marsh, is the "first hydrogen energy stock" in the United States and even in the world. "Regulation is expected to be somewhat relaxed, and we do think so. Marsh told ** that he had spoken to a number of senators who told him that "the standards are going to be looser, not stricter."
On Friday, the U.S. Treasury Department published a 128-page proposal in the Federal Register** that states that U.S. companies could expect to receive up to $3 in tax credits for every kilogram of hydrogen produced, but that the electricity used by these hydrogen projects must come from new clean power projects built within the last three years and must be located in the same grid area as the hydrogen plant.
The proposal also reads that hydrogen producers must prove every hour that the electricity used by their electrolysers comes from new renewable energy projects, meaning that electrolyzers can only run within the same hour that clean electricity is available. The U.S. Treasury Department is asking companies involved in hydrogen projects to implement such a program starting in 2028, earlier than many companies and industry organizations expected.
Fortunately, this proposal is still in the public comment stage, and these requirements may not appear in the final version of the bill. Marsh said in-house models show that U.S. hydrogen production would be reduced by 70 percent by 2030 if written out. He added that Prager Energy and its peers are planning to actively work to help adjust the regulations.
Citi analyst Vikram Bagri wrote in a recent report that Prager Energy is building a green hydrogen plant in Georgia, and it is debatable whether the plant will be eligible for a tax credit given the potential requirement of "proof per hour," let alone a subsidy of up to $3 per kilogram.
Previously, business groups, including the U.S. Chamber of Commerce, slammed the new hydrogen subsidy rules, saying it would slow down the construction of a hydrogen economy. Democratic Senator Manchin has also commented that for a ** who wants to reduce emissions and combat climate change, it makes no sense to suppress the hydrogen market before it has even begun.
Frank Wolak, CEO of the Fuel Cell & Hydrogen Association (FCEA), said in a statement, "These proposed regulations and requirements will unnecessarily hinder investment and technological development in the U.S. hydrogen industry." ”