Big Polluters Want to Game the System on Hydrogen Credits

The Inflation Reduction Act, the Biden administration’s signature legislative achievement, was intended to do more than bring prices down: It also contained smart provisions to protect the climate. Now, the fossil-fuel industry is lobbying to secure loopholes in rules on hydrogen-production incentives that will reward them but hurt the planet.

This multibillion-dollar fight is rooted in the fact that hydrogen can be produced in several ways. More than 90% of hydrogen today is “gray” hydrogen made from fossil fuels: It’s very dirty and bad for the climate. But the IRA provides tax credits for “green” hydrogen, made using renewable energy, and “blue” hydrogen, which is extracted from natural gas with some of its climate-damaging emissions captured and buried.