The US government has finalized rules allowing nuclear power plants to secure tax credits for producing clean hydrogen, aiming to boost the use of this energy source in heavy industry and transportation.
Under the Inflation Reduction Act, subsidies are available for technologies that curb greenhouse gas emissions. The Treasury Department has adjusted the rules to permit nuclear power plants to qualify for these credits if they prevent reactors from retiring.
The new policy allows a maximum of 200 megawatts of a reactor’s power generation capacity to be considered new clean power eligible for credits. This could help constellations like Constellation Energy, the country’s largest generator of nuclear power, secure funding for their hydrogen production projects.
Environmental groups have opposed this move, arguing that nuclear reactors should not qualify for the program and that using them to produce hydrogen reduces clean energy available on the grid.
Industry analysts see clean hydrogen as crucial for decarbonizing heavy industry and some vehicles. The new rules offer $3 per kilogram in technology-neutral hydrogen production credits, aiming to keep projects moving forward and make the US a global leader in green hydrogen.
Treasury officials have stated that if nuclear power plants are able to prevent emissions by producing hydrogen, then the increased demand will not lead to additional greenhouse gas emissions elsewhere. The policy is seen as a positive step for the industry, with Constellation Energy expressing its support for the new rules.
Source: https://www.reuters.com/sustainability/climate-energy/biden-administration-offers-nuclear-industry-path-hydrogen-tax-credit-2025-01-03