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This is a re-post from H2View.

The inflation reduction act lays the foundation and creates a future economy, and an investment in our future.

August 12, 2022

GenH2: Inflation Reduction Act needs to go further

Despite widespread hydrogen industry support for the climate and tax package detailed in the landmark US Inflation Reduction, GenH2, has made a call for further support.

Under the Act, qualified clean hydrogen producers could be set to receive a tax credit for up to $3 per kg of hydrogen, as well as offering up to $7,500 for new hydrogen fuel cell vehicles, and up to $4,500 for used vehicles.

Although expressing excitement at the prospect of the Act, which has now passed through the US Senate with a margin of 50 to 51, Bateman believes smaller, pure play companies could miss out.

GenH2 said, “We really excited about the package and the fact that steps are being made. However, there are two pieces that are missing, in order to reach a long-term successful hydrogen economy: 1. A mandated trickledown requirement in the bill so that the funds will reach smaller pure play hydrogen companies, and 2. Incentives for the larger companies to grow the hydrogen economy and achieve long-term success.”

“With the passing of the bill, we anticipate there will only be a small trickle-down effect which means the key will be how companies can work together, understand funds, and explain both the short-term and long-term value. A portion of funds need to go to pure play companies, like GenH2, who are doing advanced research and commercialization to get to the market as soon as possible. That is how you create an optimal solution.

“At the end of the day, this package is for a long-term investment. To lay the foundation and create a future economy, and an investment in our future. We need to better tell that story as an industry: How this bill will ultimately effect everything – the planet, our children and the economy.”