Webinar - Understanding the Impact of the Section 45V Tax Credit Extension

About this Video

• Video Title: Webinar - Understanding the Impact of the Section 45V Tax Credit Extension
• Channel: Solar Energy Events
• Speakers: Jason Muster, Roxanna Bec Mahome, Kyle Core, Michael Sykes
• Duration: 01:02:08

Introduction

This webinar discusses the Section 45V clean hydrogen production tax credit extension in the USA. The speakers, industry leaders and clean energy advocates, analyze the credit's evolution, impact on the hydrogen industry, and the challenges and opportunities it presents.

Key Takeaways

• 45V Credit Evolution: The 45V tax credit, initially offering up to $3 per kilogram of clean hydrogen, underwent several changes, including the introduction of "three pillars" (incrementality, deliverability, and temporal matching) impacting eligibility. The timeline for hourly matching was extended to 2030, and the construction deadline for qualification was shortened to January 1st, 2028. Blue hydrogen, initially excluded, is now eligible under certain conditions.
• Industry Impact: The fluctuating credit availability and evolving regulations created uncertainty. While some well-advanced projects continue, others stalled or were abandoned, leading to a shift in investment towards other regions. The hype of 2022 subsided, and collaboration is crucial for future success.
• State-Level Initiatives: States play a significant role in hydrogen development through incentives and mandates (like California's Air Resources Board). Successful strategies combine incentives with mandates, creating market demand and fostering growth. Focusing on local needs and political landscapes is essential.
• Federal and State Strategies: To navigate 45V, stakeholders should focus on meeting verification requirements, understand emission rate calculations, and engage in lobbying efforts at state and federal levels. Building strong relationships with local politicians and presenting a positive, additive narrative for hydrogen are essential for success.
• Global Competition: The US has lost some of its competitive edge in the global hydrogen market. The cost of green hydrogen, approximately double that of blue hydrogen, remains a significant barrier. Matching international standards will be crucial for increased US exports of green hydrogen.