Wolters Kluwer: Sustainability & ESG Law’s Post

Unlocking the potential of clean hydrogen in the U.S. requires transparency on tax credits. As identified in our report Fueling Up: How to Make U.S. Clean Hydrogen Projects Happen, the proposed IRS regulations under Section 45V have raised concerns within the industry and caused market uncertainty. Designed to incentivize clean hydrogen production, these regulations require adherence to strict criteria, with eligible credits meeting three criteria: additionality, time matching, and deliverability.   However, developers and utilities have voiced concerns on the perceived strictness of the regulations, warning that it will drive up costs and make it harder to fund and construct projects. Further clarity from the IRS on its finalized rule is cautiously awaited.   For more information, download the report: https://lnkd.in/gnft_yZc   #CleanHydrogen #TaxCredits #IRS #CleanEnergy #IndustryReport

I've long been a sceptic on CCS and its role in corporate transition plans. This report shines a light on the slow pace and poor return on investment so far. Given the underlying physics, its hard to seen a major breakthrough in the technology that will make it appropriate for the decarbonisation challenge. According to the authors: ➡ CCS the most expensive and least effective solution. ➡ Correlation of countries spending and those with incumbent FF industries (US, Canada, Norway) ➡ The whole current capacity of CCS would be only enough to capture 0.1% of current annual carbon emissions . .. ➡ But even this assumes high captures rates of 95%. Real world is no better than 80% ➡ Of currently captured CO2, 72% isn’t properly captured, it goes into enhanced oil recovery. https://lnkd.in/eXzDNHvz

On December 22, 2023, the U.S. Treasury and IRS unveiled long-awaited proposed regulations for claiming the Clean Hydrogen Production Tax Credit established by the Inflation Reduction Act of 2022.  This credit offers significant incentives for domestic production of clean hydrogen, defined as having lifecycle greenhouse gas emissions below 4 kilograms of CO2e per kilogram of hydrogen.  While uncertainties remain, the potential for innovation, market growth, and international collaboration is substantial. Developers and stakeholders alike should actively engage in the ongoing regulatory process and leverage the opportunities presented by this transformative initiative. Do you have any data or research that could inform this discussion? #USTeasury #IRS #CleanHydrogen #RenewableEnergy #CarbonOffsets #InflationReductionAct #GreenhouseGasEmissions #CO2e

Net Zero UK - “big boiler manufacturers that fund the EUA should be ashamed of themselves” The Energy and Utilities Alliance (EUA) is a “not-for-profit trade association that provides a leading industry voice to help shape the future policy direction within the sector.” (https://lnkd.in/e4iHUwXU) This is what Lord Callanan, Minister for Energy Efficiency and Green Finance, had to say on Wednesday. (https://lnkd.in/eaWmX7Bh) “I thank my noble friend for that question; I did see that article and I completely agree with her that it was very good investigative journalism. I am supportive of a sensible debate on competing technologies, but planting misleading and false stories about heat pumps to negatively affect public support for the technologies is, frankly, a disgrace, and the big boiler manufacturers that fund the EUA should be ashamed of themselves.” It is covered here by Desmog who uncovered some very disturbing practices. (https://lnkd.in/esQTAbPY) It contains this quote from Michael Liebreich “Nowhere else in Europe are incumbent boiler manufacturers and gas distribution networks so brazenly spreading misinformation as in the UK – so it’s small surprise to see the UK coming up last in Europe for heat pump installations per million homes.” In the past the EUA have frequently been invited by Westminster to present the views of its members. Should EUA Westminster access continue and should the Hydrogen All Parties Parliamentary Group reconsider its sponsors? (https://lnkd.in/eRuGcq7r)

The EUA have been deliberately sowing misinformation about heat pumps. We are in the midst of a climate emergency and all they care about is deliberately sabotaging our national decarbonisation efforts for the sake of their greedy profits. That is utterly despicable and well done DeSmog for uncovering this. I am delighted to hear that their efforts to strong-arm government seem to have failed. Thank you Department for Energy Security and Net Zero and Claire Coutinho and Lord Callanan for resisting these efforts to overturn urgently needed action to accelerate heat pump take-up. I hope that BBC "you and yours" air some much more balanced comments on heat pumps to counter the extremely negative and misleading comment by Mike Foster of the EUA. It seems from a comment by Michael Liebreich that the EUA and Mike Foster are no longer welcome in government offices. What we need next is for the gas companies and boiler manufacturers who paid for this disinformation to also be barred - they funded the disinformation and lies and should not be allowed to get away with it. However, credit where credit is due - well done government! 👏👏 👏👏 👏 👏 👏 👏 👏 👏 👏 👏 👏 👏

Just Solutions submitted comments, along with several frontline organizations and other allies, on the 45V proposed rule to raise these concerns and draw attention to the impacts that increased hydrogen production may cause in EJ communities. For recommendations and to view the submitted comments, visit our website for the full article written by Sylvia Chi, Senior Policy Analyst. https://bit.ly/3IiC3zx Among the various uncapped energy tax credits that form the core of the Inflation Reduction Act (IRA), none has been more heavily contested than 45V, the hydrogen production tax credit. This credit, newly created by the IRA, allows hydrogen producers to claim credits for every kilogram of “qualified clean hydrogen” produced. Since the passage of the IRA, industry interest in 45V has been high, due to its potential to unlock generous payouts for hydrogen producers. What has received less attention are the various environmental justice impacts and concerns related to hydrogen production, such as safety, air pollution, and water use. #IRA #InflationReductionAct #FederalEJ #Hydrogen #HydrogenProduction #HydrogenEnergy #EnvironmentalJustice #ClimateJustice

The U.S. Department of the Treasury recently released its draft rules on the 45V #hydrogen tax credit – guidance that will shape the new hydrogen economy and electricity grid for decades to come. The stakes around emissions accounting for green hydrogen, which would earn the highest tax credit, are extremely high. Producing H2 requires a LOT of electricity, so it really matters if the electricity that powers it is clean or dirty and if it’s pulling power away from other uses, like transportation. To ensure that green H2 delivers as a #climatesolution, we’re supporting a strong 3-pillar framework (requiring new clean power that is hourly matched and efficiently delivered). A new report from ERM backs the 3-pillar approach and offers key insights on how Treasury’s final guidance can be structured with targeted flexibilities to prevent pollution increases, while spurring long-term growth in the clean hydrogen economy. https://rb.gy/xic88s 

https://lnkd.in/e3ruG2jH Clean Energy Group Statement on Treasury Department Hydrogen Tax Credit Guidance On Friday, December 22, the US Treasury Department released initial guidance regarding the Inflation Reduction Act’s (IRA) clean hydrogen (45V) tax credit program.Clean Energy Group(CEG) applauds the Treasury’s decision to follow the guidance ofclimate scientists,environmental justice advocates, andtechnical expertsand apply appropriately strict standards to ensure that the 45V tax credit incentivizes truly clean hydrogen production that will not lead to a dangerous increase in greenhouse gas emissions.

#hydrogen #CO2 I would like to closely review the contents shared in this week's #WeekendRoutine and gain insights from them.

Great post summing up the latest German updates on - #hydrogen production acceleration and - carbon management strategy #ccus Whilst in the USA, the ton of captured and stored CO2 is very clear ($US 85), the German strategy is not (yet?) proposing a price; the benefit lies in the European Trading Scheme for the time being. With #renewableenergy being used straightaway, stored in batteries/salt caverns, or imported, the most important need for turning green hydrogen into hydrocarbons (the U in CCUS, for example) would be for local production of #ekerosene. This will be largely imported from countries like #Australia, though, hence the need for a well-defined carbon management strategy & carbon certification down under, as well as in all exporting countries.