Hydrogen producers adapt to new US regulations

Hydrogen producers in the United States are exploring renewable energy sourcing strategies to meet new regulations and stimulate investment.

Share:

Producteurs hydrogène régulations États-Unis

Comprehensive energy news coverage, updated nonstop

Annual subscription

8.25$/month*

*billed annually at 99$/year for the first year then 149,00$/year ​

Unlimited access • Archives included • Professional invoice

OTHER ACCESS OPTIONS

Monthly subscription

Unlimited access • Archives included

5.2$/month*
then 14.90$ per month thereafter

FREE ACCOUNT

3 articles offered per month

FREE

*Prices are excluding VAT, which may vary depending on your location or professional status

Since 2021: 35,000 articles • 150+ analyses per week

Hydrogen developers in the U.S. are examining various renewable energy sourcing strategies to comply with national and international electricity sourcing standards. This thinking comes against the backdrop of the US government’s proposed Inflation Reduction Act (IRA) rules, which aim to promote low-carbon hydrogen production.

Impact of new regulations

Hydrogen producers have highlighted the growing popularity of integrated projects to facilitate compliance with global regulations. The proposed guidelines for 45V Production Tax Credits announced by the U.S. Treasury and Internal Revenue Service on December 22, 2023, could impose barriers to the adoption of low-carbon hydrogen. According to an analysis by S&P Global Commodity Insights, these rules could slow investment in hydrogen production, reduce affordability and curb market growth.

Sourcing challenges and strategies

Developers of green hydrogen electrolysis projects are exploring interim options to secure renewable energy and comply with additionality criteria. Prior to the introduction of the provisional IRA rules, many projects were planning to connect to the grid to meet their electricity needs. However, current rules, designed to ensure that subsidized hydrogen production does not increase emissions, make integrated projects using dedicated renewable energies more commonplace. Large-scale projects in the United States, designed to export hydrogen to Europe, have a better understanding of European legislation on renewable hydrogen. However, a lack of clarity on domestic production could delay financial decisions and investments for hydrogen developers.

Producer outlook

A major developer of hydrogen electrolysis projects in the USA said on May 30 that it would continue to use a mix of grid electricity and a renewable power purchase agreement until the finalIRA rules are published. This developer aims to reduce its carbon footprint by combining its energy consumption with renewable energy credits. Other sources are considering oversizing their renewable energy purchase agreements to optimize operations in line with grid prices, a viable strategy only if it meets the three-pillar criteria.

Regulatory implications

The draft IRA rules received around 30,000 comments from market players. Some argue that facilitating grid connections would speed up hydrogen production, leading to initial cost reductions. Michael Wheeler, Vice President of Government Affairs at Intersect Power, stressed that regulations should promote long-term sustainable hydrogen installations, even after tax incentives end. New Fortress Energy warned that the 45V interim rules would severely limit the adoption of clean hydrogen in the U.S., delay the Biden administration’s decarbonization efforts and eliminate the potential for millions of jobs. The company plans to produce hydrogen by electrolysis to fuel OCI’s green ammonia plant in Beaumont, Texas.
New U.S. hydrogen regulations pose significant challenges for producers seeking to comply with strict renewable electricity sourcing criteria. While integrated projects using dedicated renewable energies are gaining in popularity, regulatory uncertainty continues to hold back investment. The future of green hydrogen will depend on producers’ ability to navigate this complex regulatory landscape and find viable solutions to meet new requirements while sustaining market growth.

Asset manager Quinbrook expands its North American portfolio with a first Canadian investment by acquiring a strategic stake in developer Elemental Clean Fuels.
Lhyfe commissions a 10 MW site in Schwäbisch Gmünd, its first in Germany, to supply RFNBO-certified green hydrogen to industrial and heavy mobility clients.
Brookfield will invest up to $5 billion in Bloom Energy's fuel cells to power future artificial intelligence factories, initiating the first phase of a dedicated global digital infrastructure strategy.
Metacon acquired components from the bankruptcy estate of Hynion Sverige AB for SEK3.5mn ($320,000), aiming to support its hydrogen refuelling station projects in Sweden.
The United Kingdom has carried out its first real-life trial of green hydrogen blending into the national gas transmission network, with power generation as a result.
Swedish company Liquid Wind has secured €3.6mn in public funding for the engineering phase of its eMethanol plant, integrated into a biomass-fuelled cogeneration site.
The Japanese industrial group will replace a 73.5 MW coke and gas-fired turbine with a 30 to 40 MW hydrogen-ready unit, scheduled to start operations in 2030 with ¥7.1bn ($47mn) in public support.
A two-year project aims to identify areas in Texas suitable for natural hydrogen exploitation, despite challenges related to infrastructure, public policy and economic viability.
Plug Power has announced the appointment of Jose Luis Crespo as President effective October 10, before assuming the role of Chief Executive Officer once the company publishes its annual report, expected in March 2026.
Plug Power finalised a deal with an institutional investor to raise $370mn through the immediate exercise of warrants, with the possibility of securing an additional $1.4bn if new warrants are exercised.
Air Liquide announces a $50mn investment to strengthen its hydrogen network on the US Gulf Coast, following long-term contracts signed with two major American refiners.
Global demand for industrial gases will grow on the back of hydrogen expansion, carbon capture technologies, and advanced use in healthcare, electronics, and low-carbon fuel manufacturing.
Green ammonia reaches a new industrial milestone with 428 active projects and over $11bn in investments, highlighting accelerated sector growth across Asia, the Middle East, Europe and the Americas.
Nel Hydrogen US will supply a containerised electrolyser to H2 Energy for a hydrogen production facility commissioned by the Association for Waste Disposal in Buchs, Switzerland.
UK-based manufacturer ITM Power has signed an engineering contract for a green hydrogen project shortlisted under the country's second Hydrogen Allocation Round.
Agfa strengthens its industrial position with the launch of a ZIRFON membrane production site for electrolyzers, backed by a €11mn European subsidy.
Driven by Air Liquide and SEGULA Technologies, the ROAD TRHYP project aims to lower hydrogen transport costs and improve safety through a series of technical innovations by 2030.
Qair obtains structured bank financing of €55mn for its Hyd’Occ ecosystem, integrating renewable hydrogen production and distribution in Occitanie, with commissioning scheduled before the end of 2025.
Swedish firm Metacon has secured a EUR7.1mn ($7.7mn) contract to deliver a 7.5 MW electrolysis plant to Elektra Power SRL, marking its operational entry into the Romanian market.
The Clean Hydrogen Partnership has closed its first call for Project Development Assistance (PDA), totaling 36 applications from 18 countries. Results are expected in October, with support starting in November.

All the latest energy news, all the time

Annual subscription

8.25$/month*

*billed annually at 99$/year for the first year then 149,00$/year ​

Unlimited access - Archives included - Pro invoice

Monthly subscription

Unlimited access • Archives included

5.2$/month*
then 14.90$ per month thereafter

*Prices shown are exclusive of VAT, which may vary according to your location or professional status.

Since 2021: 30,000 articles - +150 analyses/week.