On December 22, 2023, the US Treasury Department and Internal Revenue Service released long-awaited guidance on tax incentives for green hydrogen projects. Tax credits of up to $3 per kilogram will be available for the cleanest projects as long as they meet a few key requirements: they must be powered by new renewables projects; they must produce hydrogen at the same time as power is being generated; and they must be close to their renewables source. These rules are similar to those in Europe, but critics say they are too strict.

In this episode of the Climate Transition podcast, we look at whether these rules will help the US green hydrogen sector to lead the world and what else is needed to unlock investment.