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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• While many IRA subsidies may be repealed, hydrogen incentives have gained bipartisan support, with backing from both California’s Democratic governor Gavin Newsom and Texas’ Republican governor Greg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
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