Hydrogen development could be reined in by new government rules


If any hydrogen projects are ever going to be developed in Oklahoma, developers might be faced with some green energy challenges about to be created by the Biden administration. Challenges that some contend will only result in failure of non-government funded hydrogen projects.

In other words, shooting yourself in the foot before the hunt ever begins.

Reports indicate that a leaked draft of the Treasury Department rules for hydrogen tax credits would require hydrogen-production operations to be powered by renewable energy. In other words, if a firm or individual would seek tax credits for development of their project, they would also have to energy the project through wind, solar or other clean-power projects.

Politico reported the rules are not finalized and already drew criticism from advocates of hydrogen projects.

Jason Grumet, chief executive officer at American Clean Power Association predicted that with such requirements, the hydrogen projects would fail to get the new industry off the ground.

β€œIt is surprising and disappointing that the administration would propose such a rigid approach that is at odds with decades of learning about new technology deployment.”

The Treasury Department is not commenting about the possible requirement. Who is behind such rules?

Certain environmentalists advocated for strict rules to require that hydrogen be produced with new clean power sources, otherwise, such projects might driven higher demand for fossil-fuel based electricity and result in more greenhouse gas emissions.

Oklahoma was one of several states that recently failed to attract the support of the federal government in the development of hydrogen hubs. In October, a hydrogen hub proposed by Oklahoma, Arkansas and Louisiana was not chosen to receive part of $7 billion in government funding.

The draft recently leaked from the government agency proposed such hydrogen projects be powered through renewable energy through 2027, then on a hourly basis starting the following year.