Narrowly proposed 45V guidance will have significant impact on H2Hubs projects throughout the country; MachH2 also issued its own specific recommendations to revise the draft guidance
Today (Feb 26), the Midwest Alliance for Clean Hydrogen (MachH2) announced it has signed a letter with all seven regional clean hydrogen hubs (H2Hubs) urging the U.S. Department of Treasury to revise its proposed hydrogen production tax credit (45V) guidance. MachH2 also submitted specific recommendations to revise the guidance in a separate, independently issued letter. Both letters were submitted formally as comments through the Internal Revenue Service's public comment docket.
A full copy of the joint H2Hubs letter can be viewed here. A full copy of MachH2's letter with recommendations to revise the guidance can be viewed here.
"Each of our hubs has a range of ambitious projects aimed at accelerating the clean hydrogen industry, fostering economic growth, creating good-paying American jobs, and advancing environmental justice," the joint H2Hubs letter states. "Unfortunately, these investments and jobs will not fully materialize unless Treasury's guidance in its current form is significantly revised, as many of the projects generating these investments and supporting jobs will no longer be economically viable. We strongly urge the U.S. Treasury Department to reconsider and revise its proposed guidance on the hydrogen production tax credit."
MachH2's letter echoed that sentiment.
"A rapid transition to clean hydrogen is vital for America meeting its goal of net zero emissions by 2050," writes Dr. Dorothy Davidson, MachH2's Chief Executive Officer. "Achieving this, however, hinges on robust, flexible, and technology-neutral tax credit guidance. If implemented as written, Treasury's guidance will severely impact the viability of several of our hub projects and result in the cancellation of our nuclear hydrogen production project. It will also threaten the associated benefits to bringing flexible and affordable clean energy and improving the environmental quality in our local communities," writes Davidson.
MachH2 anticipates creating more than 10,000 clean energy jobs. MachH2's projects are also estimated to reduce carbon emissions by approximately 3.9 million metric tons per year - equivalent to removing emissions from more than 867,000 gasoline powered cars annually[1].
MachH2 wants to adjust the guidance so that projects can provide a liftoff to the hydrogen market and a long-term path to hard-to-decarbonize emissions.
"It is imperative that Treasury's final 45V regulations support the success of the MachH2 hub and expand opportunities to address and accelerate projects that will decarbonize our economies now and into the future," said Davidson.
About MachH2: MachH2 is a multi-state coalition of public and private entities representing every phase in the hydrogen value chain. The alliance includes a cross section of carbon-free and low-carbon energy producers, clean energy developers, hydrogen technology providers, utilities, major manufacturers, and leading hydrogen technology development and deployment institutions. MachH2 was selected by the U.S. Department of Energy's (DOE) Office of Clean Energy Demonstrations (OCED) to develop a Regional Clean Hydrogen Hub (H2Hub) in October of 2023. Learn more at MachH2.com.
