Tax credits vary between $0.60 and $3 per kilogram (Representative image)|Raimond Spekking|CC BY-SA 4.0

The Biden administration announced yesterday its eagerly awaited plan to allocate billions of dollars in tax credits to hydrogen producers—a move to advance the cleaner alternative in the US.

The initiative is a crucial component of the Inflation Reduction Act. It aims to generate $140 billion in revenue and 700,000 jobs by 2030, contributing to the broader effort to build a robust hydrogen industry.

Tax credits vary between $0.60 and $3 per kilogram, depending on the overall lifecycle emissions.

Deputy Secretary David M Turk emphasized the ambition to produce 50 million metric tons of hydrogen by 2050, equivalent to the current combined energy consumption of all buses, planes, trains and ships in America.

While applauded by some as a climate win, critics argue the guidance may impede industry growth and flexibility, sparking mixed reactions.