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Hydrogen-From-Oil Startup Sees Boost From New US Tax Credits

Cemvita Factory says the credits, contained in the Inflation Reduction Act, will give it an additional $3 of revenue for every kilogram of hydrogen it produces.

Corrected

Cemvita Factory Inc., a Houston-based biotech company backed by Occidental Petroleum Corp., says tax credits passed by Congress last month will allow it scale up plans to produce hydrogen using oil-eating microbes.

Cemvita recently completed successful tests of the technology on two old oil wells in the Permian Basin in West Texas, and formed a new subsidiary with Chart Industries Inc. and venture firm 8090 Industries that will deploy the technology at various US oil fields, Cemvita’s Chief Business Officer Charles Nelson said in an interview.