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Congressional tax incentives help Cemvita produce hydrogen from oil-eating microbes

Anela DoksoBy Anela Dokso28/09/20221 Min Read
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Cemvita Factory will be able to expand its ambitions to create hydrogen using oil-eating microorganisms thanks to tax credits enacted by Congress last month.

Recently, Cemvita launched a new company with Chart Industries and venture firm 8090 Partners to deploy the technology to several US oil fields, following successful tests on two defunct oil wells in West Texas’s Permian Basin.

The firm claims it can create the clean-burning fuel hydrogen for $1 per kilogram, and it intends to sell it at market prices. A marginal well that only produces one to two barrels of oil per day can produce one ton of hydrogen per day when used in conjunction with the company’s microorganisms.

As a result of the tax rebates, the firm will be able to increase its hydrogen production to 250 tons per day by the year 2025.

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