Hydrogen Tax Credit Guidance Stymies New Projects, NextEra Says

The Biden administration’s proposal to require hydrogen projects to match their production to clean energy generation on an hourly basis to qualify for tax credits threatens the nascent industry, a group of companies including NextEra Energy Inc., Siemens Energy, and Cummins Inc. said Wednesday.

The stringent hourly matching requirements proposed by the Treasury Department in December have played a major role in driving pessimism among once-buoyant US hydrogen advocates, Phil Musser, NextEra’s vice president of federal government affairs, said during a call with reporters to discuss the companies’ concerns.

The proposed rules “have dampened enthusiasm for that ...