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We’re about to give billions of dollars to clean hydrogen. How should we define it?

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This document discusses the debate over how to define 'clean hydrogen' as the U.S. government prepares to distribute up to $100 billion in tax credits under the Inflation Reduction Act. It explains that hydrogen is only truly clean if produced using clean electricity through a process called electrolysis, and that the IRS must decide how strict the standards should be. Experts warn that overly lax definitions could inadvertently increase greenhouse gas emissions rather than reduce them.

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Volts podcast transcript from March 29, 2023, hosted by David Roberts, featuring Rachel Fakhry of the Natural Resources Defense Council (NRDC). Discusses the Inflation Reduction Act (IRA) clean hydrogen production tax credit ranging from $0.60 to $3 per kilogram, tied to lifecycle greenhouse gas emissions. The $3/kg top credit requires achieving 0.45 kg CO2 per kg of hydrogen — a 95% reduction from status quo fossil-fuel-derived hydrogen (~10 kg CO2/kg). Covers how the IRS is defining ‘clean hydrogen’ and ‘clean electricity’ for electrolyzer-based green hydrogen, the risk of lax standards increasing grid emissions, and industry lobbying by companies including BP and NextEra. Up to $100 billion in subsidies at stake through 2045.

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