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Whitehouse, Merkley, Raskin, Beyer & 62 Lawmakers Urge Biden Administration to Finalize Strict Clean Hydrogen Tax Credit Rules

Washington, DC – U.S. Senators Sheldon Whitehouse (D-RI) and Jeff Merkley (D-OR) and Representatives Jamie Raskin (D-MD) and Don Beyer (D-VA) yesterday led a letter from 66 members of Congress calling on the Biden Administration to finalize strict rules for the Section 45V Tax Credit for Production of Clean Hydrogen that was passed as part of Democrats’ historic Inflation Reduction Act.

In a letter sent yesterday to Treasury Secretary Janet Yellen, Energy Secretary Jennifer Granholm, EPA Administrator Michael Regan, OMB Director Shalanda Young, National Climate Advisor Ali Zaidi, and John Podesta, Senior Advisor to the President for Clean Energy Innovation and Implementation, the lawmakers urged the administration to quickly finalize the strong proposed rules for 45V that aligned with Congressional intent and would reduce carbon emissions, while ensuring the tax credit supported robust growth in the nascent clean hydrogen industry.

“When Congress drafted the climate provisions of the Inflation Reduction Act, including the Section 45V Tax Credit for Production of Clean Hydrogen, our primary intent was to develop a suite of incentives that would result in substantial emissions reductions.  The 45V tax credit is a key part of the IRA, which will help decarbonize hard-to-abate industrial sectors.  Treasury’s proposed rules for 45V remain critical to ensuring that 45V does not increase net carbon pollution, and we urge Treasury to finalize rules consistent with its proposal,” wrote the lawmakers.

“The U.S. has the chance and is well-suited to stake out a leading position on clean manufacturing; we must not squander this opportunity for short-sighted gain,” added the members.  “Treasury’s strong proposed rules demonstrated a commitment to evidence-based policy, and we urge Treasury to maintain this rigor as it finalizes the regulations.  Just as we agree that it is important to get clean hydrogen right, we agree that no tax credit is worth compromising our commitment to tackling the climate crisis by pursuing scientific emissions reduction targets.”

The Inflation Reduction Act included a suite of clean energy tax credits and other provisions to boost decarbonization technologies in the United States, including the Section 45V Clean Hydrogen Production Tax Credit.  Clean hydrogen has the potential to reduce emissions in aviation, shipping, steelmaking, and heavy-duty vehicles, but is still at an early stage of development.  The 45V tax credit, as designed by Congress, aimed to jump start innovation in the hydrogen industry to give clean hydrogen an opportunity to compete with conventional “grey” hydrogen.

Senators Whitehouse and Merkley asked Treasury in an October 2023 letter to adhere closely to Congressional intent and implement strict rules for the 45V tax credit.  The senators urged Treasury to design the standards around three principles – additionality, deliverability, and time-matching – to ensure the environmental integrity of the program.  The senators also pointed to the rules governing the European Union’s clean hydrogen economy as a good starting point for Treasury’s standards.

“A three-pillar framework with strong protections against fossil fuel greenwashing ensures the hydrogen tax credit is part of a solution to this problem by stimulating demand for new sources of clean electricity generation while fulfilling its primary goal of reducing carbon pollution.  These rules ensure that we do not subsidize a greenwashed industry that burdens environmental justice communities with toxic pollution,” added the 66 members of Congress.

Senators Ed Markey (D-MA), Bernie Sanders (I-VT), Chris Van Hollen (D-MD), Elizabeth Warren (D-MA), Peter Welch (D-VT), and Cory Booker (D-NJ) joined Whitehouse and Merkley on the letter.  Representatives Raskin and Beyer led a group of 58 members of the House of Representatives in signing the letter.  Climate Action Campaign, Natural Resources Defense Council, Earthjustice, League of Conservation Voters, Environmental Defense Fund, Union of Concerned Scientists, Sierra Club, and Evergreen Action endorsed the lawmakers’ letter.

Source: Fuel Cells Works

Bill Gates, Jeff Bezos-Backed Startup Leads The Charge In Global ‘Gold Rush’ For Buried Hydrogen

Bill Gates, Jeff Bezos-Backed Startup Leads The Charge In Global ‘Gold Rush’ For Buried Hydrogen

Koloma, a clean fuel startup supported by Bill Gates and Jeff Bezos, is leading the international quest for geologic hydrogen, a potentially revolutionary energy source.

What Happened: The startup plans to leverage expertise from the hydrocarbon industry to speed up the discovery of this carbon-free resource, CNBC reported on Thursday.. Geologic hydrogen, also known as white, gold, or natural hydrogen, is a naturally occurring gas found beneath the Earth’s surface.

Pete Johnson, CEO and co-founder of Koloma, stated that the company could leverage existing expertise and service providers from the oil, gas, and mining industries to accelerate the maturation of the geologic hydrogen industry.

Founded a few years ago, Denver-based Koloma has already raised over $305 million. Its backers include U.S. venture capital firm Khosla Ventures, Amazon’s Climate Pledge Fund, United Airlines, and Breakthrough Energy Ventures, a climate and technology fund established by Bill Gates in 2015.

Exploratory efforts for this low-carbon energy source are currently underway in multiple countries, including the U.S., Canada, Australia, France, Spain, Colombia, and South Korea.

Despite the potential of geologic hydrogen, the Hydrogen Science Coalition has raised environmental concerns about the extraction process and the challenges of transportation and distribution.

Despite these challenges, Johnson remains optimistic about the future of the industry, stating that Koloma is “very well capitalized, which allow us to take on these challenges the right way, thoughtfully and patiently.”

Why It Matters: The pursuit of geologic hydrogen as a viable energy source has seen mixed reactions. In July, Tesla Inc. CEO Elon Musk criticized the use of hydrogen for cars, calling it “silly.” Meanwhile, Fortescue, an Australian mining giant, delayed its green hydrogen ambitions due to higher energy prices.

However, interest in hydrogen as an energy source remains high. In September, Exxon Mobil struck a major hydrogen deal with Abu Dhabi National Oil Company (ADNOC). The deal involves ADNOC acquiring a 35% equity stake in Exxon Mobil’s proposed low-carbon hydrogen and ammonia production facility in Baytown, Texas.

These developments underscore the varied perspectives and challenges in the hydrogen industry, making Koloma’s pursuit of geologic hydrogen all the more significant.

Source: Hydrogencentral

Bill Gates, Jeff Bezos-Backed Startup Leads The Charge In Global ‘Gold Rush’ For Buried Hydrogen

Bill Gates, Jeff Bezos-Backed Startup Leads The Charge In Global ‘Gold Rush’ For Buried Hydrogen

Koloma, a clean fuel startup supported by Bill Gates and Jeff Bezos, is leading the international quest for geologic hydrogen, a potentially revolutionary energy source.

What Happened: The startup plans to leverage expertise from the hydrocarbon industry to speed up the discovery of this carbon-free resource, CNBC reported on Thursday.. Geologic hydrogen, also known as white, gold, or natural hydrogen, is a naturally occurring gas found beneath the Earth’s surface.

Pete Johnson, CEO and co-founder of Koloma, stated that the company could leverage existing expertise and service providers from the oil, gas, and mining industries to accelerate the maturation of the geologic hydrogen industry.

Founded a few years ago, Denver-based Koloma has already raised over $305 million. Its backers include U.S. venture capital firm Khosla Ventures, Amazon’s Climate Pledge Fund, United Airlines, and Breakthrough Energy Ventures, a climate and technology fund established by Bill Gates in 2015.

Exploratory efforts for this low-carbon energy source are currently underway in multiple countries, including the U.S., Canada, Australia, France, Spain, Colombia, and South Korea.

Despite the potential of geologic hydrogen, the Hydrogen Science Coalition has raised environmental concerns about the extraction process and the challenges of transportation and distribution.

Despite these challenges, Johnson remains optimistic about the future of the industry, stating that Koloma is “very well capitalized, which allow us to take on these challenges the right way, thoughtfully and patiently.”

Why It Matters: The pursuit of geologic hydrogen as a viable energy source has seen mixed reactions. In July, Tesla Inc. CEO Elon Musk criticized the use of hydrogen for cars, calling it “silly.” Meanwhile, Fortescue, an Australian mining giant, delayed its green hydrogen ambitions due to higher energy prices.

However, interest in hydrogen as an energy source remains high. In September, Exxon Mobil struck a major hydrogen deal with Abu Dhabi National Oil Company (ADNOC). The deal involves ADNOC acquiring a 35% equity stake in Exxon Mobil’s proposed low-carbon hydrogen and ammonia production facility in Baytown, Texas.

These developments underscore the varied perspectives and challenges in the hydrogen industry, making Koloma’s pursuit of geologic hydrogen all the more significant.

Source: Hydrogencentral

MAN Energy Solutions will be responsible as EPC for the hydrogen section of plant and the delivery of hydrogen related equipment, its installation as well as commissioning. The remaining part will be done in cooperation with Helen and Helen's engineering partner.

Sari Mannonen, Senior Vice President New Business and Hydrogen at Helen Oy, said: “The 3H2 project is the first of its kind in the world by combining four different sectors, electricity, heating, transportation and hydrogen as well as flexibility between them. Our whole hydrogen team at Helen is very excited and proud of the cooperation with MAN Energy Solutions that is well known of its world class expertise in the industry.”

H-TEC SYSTEMS, a leading supplier of PEM electrolysis technologies and subsidiary of MAN Energy Solutions (from 30 September 2024 on, H-TEC SYSTEMS will operate under the name Quest One), will supply 3 × ME450 PEM electrolysers as the centrepiece of the plant; these will produce up to 1350 kg/d of green hydrogen from green electricity generated by Helen’s renewable energy source portfolio. Helen Oy is planning to deliver the hydrogen to a nearby hydrogen refuelling station via pipeline and distribute it to industrial customers or other refuelling stations using containers. The waste heat generated in the production process will be utilised in Helen’s district heating network.

Alexander Stöckler, Head of Sales, Tendering & Project Management, Power Segment at MAN Energy Solutions, said: “Green hydrogen is undoubtedly the key element for a climate-neutral future and the global economy will require it in large quantities. It is therefore most important that energy suppliers like Helen Oy lead the way by building plants and gaining valuable operational experience with hydrogen technology. We urgently need industrial production plants to achieve economies of scale, reduce costs and meet the huge future demand for hydrogen both efficiently and economically.”

At the core of the plant are the three PEM electrolysers from H-TEC SYSTEMS. Through the PEM process, water is split into hydrogen and oxygen with the help of an electric current that is passed through a special membrane. Due to its high dynamics, PEM electrolysis is ideally suited for coupling with fluctuating renewable-electricity sources – such as wind and solar – and has clear advantages over alkaline electrolysis. PEM electrolysis also requires less electricity per kilogram of hydrogen produced, does not use any aggressive chemicals, and produces high-purity hydrogen that is suitable for direct use.

Robin von Plettenberg, CEO of H-TEC SYSTEMS, said: “By combining H-TEC SYSTEMS’ expertise in the field of PEM electrolysis with MAN Energy Solutions' broad experience in plant engineering, we can offer our customers a first-class package for the production of green hydrogen. We are very pleased that Helen Oy has placed its trust in our joint capabilities and is taking this important step into the future of hydrogen with us. With this plant in the vicinity of the Vuosaari Harbour, our electrolysers will produce green hydrogen in all Scandinavian countries and Finland. In this way, we are well on the way to laying an important foundation for a climate-neutral energy supply.”

MAN Energy Solutions and H-TEC SYSTEMS in cooperation with Helen Oy to execute Helsinki Hydrogen Plant | Global Hydrogen Review

This MoU was signed with the aim of leveraging the long-standing experience and know-how of both companies in the chlor-alkali electrolysis field to establish a close cooperation framework for development, production, and sales support in the water electrolysis field. Demand for green hydrogen produced by water electrolysis as a clean energy alternative to fossil fuels is growing. According to the Hydrogen Council, the global installed capacity of water electrolysers is forecasted to expand rapidly to a cumulative total of approximately 300 GW by 2030.

Under such circumstances, an increasing number of companies are newly entering the water electrolysis field. In particular, there is growing demand for compact production systems with reduced costs, installation space, and delivery time serving several industrial sectors, including mobility. To meet this growing demand for smaller hydrogen production systems, Asahi Kasei has now entered into a collaboration with De Nora, covering technical support, sales, operation, and after-sales service for small-scale containerised electrolysers in the range of 1 to 7.5 MW. By doing so, Asahi Kasei expands its portfolio into the range of small-scale containerised pressurised electrolysers, covering the emerging diversified needs of customers across the entire hydrogen market.

Asahi Kasei’s alkaline-water electrolysis business is based on nearly five decades of experience of construction, supply, and long-term operation of chlor-alkali electrolyzers worldwide. This enables the company to provide support to customers who lack adequate experience in electrolysis technology. Asahi Kasei entered the partnership with De Nora in anticipation of synergies with De Nora’s knowledge of electrodes for electrolysis and small sized pressurised electrolysers for hydrogen production. This collaboration is another important cornerstone of Asahi Kasei’s holistic business model to become a one-stop solution provider in the field of electrolysis. This model comprises technological development capabilities for membranes, electrodes, electrolytic cells, and other components involved in the electrolysis process. Going beyond mere technical expertise, it also includes supply chain construction, as well as operation technology and know-how to achieve large-scale production, monitoring technology to ensure long-term plant operability and reliability, as well as maintenance and support systems.

Kenji Takeda, Executive Officer of Asahi Kasei responsible for Business Development of its Green Solution Project, commented: “The efforts of both companies to deploy the new water electrolysis systems will lower the hurdle for customers to adopt water electrolysis and contribute broadly to the development of the hydrogen market. We believe that the combination of De Nora’s technological expertise and experience as a world leader in the field of electrolysis for many years, together with Asahi Kasei’s customer experience-oriented business model cultivated through chlor-alkali electrolysis, will play an important role in the development and deployment of this system in the addressable markets.”

De Nora’s CEO, Paolo Dellachà, commented: “We are proud to announce the commencement of a collaboration with Asahi Kasei to develop small-scale electrolysers for green hydrogen generation, marking a significant step towards sustainable energy solutions. This partnership leverages the strengths of two leading companies in a strategic field, addressing the global market’s growing demand for small-scale hydrogen production systems through our combined expertise. The strategic partnership with Asahi Kasei will enable De Nora to further develop its small-scale containerised electrolyser technology for hydrogen production, designed to supply hydrogen to various applications, including mobility, metallurgy, and other hard-to-abate sectors. It effectively supports decentralised hydrogen production in areas identified as ‘Hydrogen Valleys,’ progressively eliminating the dependency on fossil fuels. In addition, this collaboration will accelerate the ramp-up of production at our Italian Gigafactory, our newest electrolyser manufacturing hub currently under construction.”

Asahi Kasei enters collaboration with De Nora for development of small-scale containerised electrolysers | Global Hydrogen Review