Plug Power Joins 33 Signatures in Clean Hydrogen Letter to Biden AdministrationJuly 29, 2023
The letter was to address the implementation of Section 45V Clean Hydrogen Production Tax Credit
Clean hydrogen solutions global leader Plug Power has joined 32 other signatories, including the US Chamber of Commerce, in submitting a letter to the Biden administration regarding the implementation of an H2 tax credit.
Those signing the letter are hopeful that the rules for the tax credit will support, not hinder goals.
Domestic clean hydrogen is expected to play an important role in the US effort to meet climate and economic targets. It is for this reason that Plug Power has said that it has signed the letter to officials in the Biden administration to address the implementation of the Section 45V Clean Hydrogen Production Tax Credit (PTC). The PTC was initially created by Congress to drive investments into renewable H2. That said, if the rules for PTC are not carefully designed, there is concern that it will do more harm than good to achieving the country’s goals.
The letter places the spotlight on the renewable H2 PTC’s importance of supporting energy security, decarbonization of sectors that are among the most challenging to abate, and job creation. Furthermore, the letter also cautions Biden’s administration to avoid inequitable and unworkable requirements for the PTC that would send investments out of the country, making it possible for other countries to undercut renewable H2 production in the United States.
The intention Congress had for the Clean Hydrogen PTC and Inflation Reduction Act was to rapidly scale green hydrogen.
Congress was seeking to push renewable H2 production within the US while boosting the administration’s greenhouse gas pollution reduction commitments.
Furthermore, Plug Power issued a technical and policy impact analysis, which it called “The Road to Clean Hydrogen: Getting the Rules Right,” specifically about the implementation of the PTC.
Getting it right
“The fact is clean domestic hydrogen is essential to meeting America’s climate and economic goals,” said Andy Marsh, CEO at Plug Power. “If PTC rules are too restrictive, we risk forgoing hundreds of thousands of jobs, conceding hydrogen leadership overseas, compromising our energy security, and failing to achieve decarbonization goals – especially in hard-to-abate sectors like steel and chemical production.”