The U.S. Department of the Treasury missed its mid-August deadline to release guidance defining the type of hydrogen production eligible to receive the maximum tax credit under the Inflation Reduction Act.
The department had a year from the passage of the legislation last August to decide how producers might benefit from a tax credit that provides a subsidy of up to $3 per kilogram. The incentive is meant to bolster the production of "green" hydrogen, which is made using electrolyzers that split water molecules.
Producers are banking on the guidance to make decisions about projects, said Frank Wolak, CEO of the Fuel Cell and Hydrogen Energy Association, and they now expect it will arrive in September or October.
"Most people in industry are sort of frustrated because they just want to get on with decisions," he said.