In a pivotal moment for the clean energy landscape, the Green Hydrogen Catapult (GHC) has penned a letter expressing strong support for the climate-aligned implementation of the 45V clean hydrogen production tax credit (PTC). Addressed to key figures in the US government, the letter underscores the pivotal role the US plays in shaping international clean hydrogen standards.
The GHC, a coalition of major players in the green hydrogen sector, emphasizes the far-reaching consequences of the US’s rules for defining green hydrogen. With massive projects in the pipeline domestically and internationally, the Catapult members stress that the US standards will significantly influence global definitions, especially in countries eyeing hydrogen trade.
Harmonizing US definitions with the standards set by the European Commission earlier this year is presented as a strategic move. The GHC argues that this alignment would not only catalyze the growth of the green hydrogen market but also facilitate deep decarbonization efforts both in the US and internationally.
To ensure real climate benefits, the GHC outlines three crucial features that should be incorporated into the PTC rules. Additionality, temporal matching, and deliverability requirements are identified as essential components for making grid-connected electrolysis truly renewable and aligned with US climate goals.
The letter delves into specifics, calling for immediate requirements for green hydrogen production to be associated with new power production. This association is defined as electricity from a generator starting power production less than 36 months prior to hydrogen production, aligning with the EU’s Clean Hydrogen Standard.
While advocating for strict standards, the GHC recognizes the need for flexibility in the short term to enable early project scale-up and cost decline. The letter suggests exemptions for existing zero-carbon generators meeting certain conditions to re-qualify as “new,” ensuring a balance between regulatory rigor and industry development.
The GHC proposes monthly matching between renewable power production and grid-connected hydrogen production until 2030, gradually transitioning to hourly matching. Deliverability requirements, tied to the geographic region defined by the Department of Energy, are highlighted as crucial for ensuring the credibility of claims.
In closing, the GHC emphasizes that setting stricter, climate-aligned rules for defining green hydrogen will position the US as a leader in the global race to develop clean hydrogen markets. The letter asserts that the PTC, enacted to propel the clean fuel industry’s scale-up, must incorporate these features to deliver on the US’s decarbonization aims.
