Fossil-fuel companies are lobbying Trump to save a green-fuel program

illuminem summarizes for you the essential news of the day. Read the full piece on The Wall Street Journal or enjoy below:

🗞️ Driving the news: Oil-and-gas companies and renewable energy groups are lobbying the Trump administration to keep the 45V hydrogen tax credit, a key Biden-era incentive for green hydrogen production
• Despite Trump's push to dismantle climate subsidies, industry leaders argue that maintaining the credit is crucial for U.S. energy leadership
• Over 100 companies and organizations, including ExxonMobil (see sustainability performance), Chevron, General Motors, and Airbus, signed a letter urging policymakers to preserve the credit

🔭 The context: The 45V tax credit provides up to $3 per kilogram for green hydrogen production, which uses renewable energy
• The credit was finalized just before Trump took office and is seen as essential for scaling hydrogen production in the U.S.
• While many IRA subsidies may be repealed, hydrogen incentives have gained bipartisan support, with backing from both California’s Democratic governor Gavin Newsom and Texas’ Republican governor Greg Abbott

🌍 Why it matters for the planet: Hydrogen, especially green hydrogen, is a low-emission fuel that could help decarbonize industries like steel and transportation
• If the tax credit is revoked, U.S. hydrogen development could slow, giving other countries an edge in this emerging global market
• Expanding hydrogen production could enhance energy security and support a transition away from fossil fuels

⏭️ What's next: The Trump administration may revise the tiered system of the tax credit to allow more fossil-fuel-derived hydrogen (such as blue hydrogen) to qualify for incentives
• The decision will shape the future of U.S. hydrogen investments and its role in global energy markets
• Industry players fear that prolonged political uncertainty could stall private investment in hydrogen projects

💬 One quote: "Expanding hydrogen production will enhance America’s energy security, drive economic growth, and create jobs." — Amy Chiang, Chief Sustainability and External Affairs Officer, Topsoe

📈 One stat: The U.S. produced 16.4 million metric tons of hydrogen in 2024, with 77% of announced low-carbon hydrogen projects focused on blue hydrogen, which is cheaper but less sustainable than green hydrogen

See here detailed sustainability performances of Airbus, ExxonMobil Corporation, Chevron Corporation, and General Motors 

Click for more news covering the latest on oil & gas