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illuminem summarizes for you the essential news of the day. Read the full piece in The Financial Times or enjoy below
🗞️ Driving the news: Energy firms are actively lobbying in Washington regarding forthcoming regulations they believe could impact the feasibility of multi-billion-dollar hydrogen fuel investments
• They are advocating for an approach that allows hydrogen production from electricity generated by fossil fuels
🔭 The context: Last year's significant US climate legislation heavily subsidized the creation of green hydrogen, produced by splitting water molecules with clean electricity
• The Treasury Department is about to release tax guidelines defining the eligibility criteria for various hydrogen projects
🌎 Why does it matter for the planet: The current discussion is centered on how hydrogen producers can demonstrate that the power they use is "clean", not increasing their total carbon output
• The most stringent Treasury proposal involves certification that each hour of hydrogen production is powered by a zero-carbon energy source
⏭️ What's next: Industry lobbyists are advocating for an alternative to the strict approach
• They suggest an "annual matching" system that allows producers to purchase credits for renewable electricity corresponding to their yearly energy consumption
💬 One quote: “Our business is based on the need to decarbonise. If we’re doing things, building things, and taking advantage of the incentives that are provided without actually decarbonising, that would be a travesty.” (Raffi Garabedian, chief executive of Electric Hydrogen)
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