API responds to Treasury's preliminary guidance on 45V tax credit for hydrogen expansion
(WO) — The American Petroleum Institute (API) released the following statement on Dec. 22 from API Senior Vice President of Policy, Economics and Regulatory Affairs Dustin Meyer after the U.S. Department of Treasury released its preliminary guidance on the 45V tax credit.
The expansion of a hydrogen economy, including all forms of low-carbon hydrogen, is critical to meeting any meaningful emissions reductions goals, particularly in hard-to-abate sectors such as shipping, cement and steel manufacturing.
“Our industry is leading the way in low-carbon hydrogen, investing billions in the nation’s largest hydrogen projects and driving innovation. Expanding the hydrogen economy is a key path for accelerating emissions reductions, and ensuring its full potential will require hydrogen of all types, a technology-neutral approach and solutions to build out hydrogen infrastructure. As the administration moves forward in this process, we urge them to finalize a policy that fosters more development and flexibility for hydrogen expansion, not less.”
With the appropriate policies in place to encourage hydrogen development, the U.S. hydrogen economy could generate 700,000 jobs and an economic benefit of $140 billion by 2030. To meet the Department of Energy’s goal of 10 MMT by the end of the decade, it will require supportive, consistent policies, including Treasury’s 45V guidance as well as a clear permitting process for low-carbon infrastructure.