45V Tax Credit
The IRA's Clean Hydrogen Production Tax Credit, providing up to $3.00 per kilogram for hydrogen produced with very low lifecycle CO2 emissions (less than 0.45 kg CO2/kg H2). Lower credits available for less-clean production methods.
Why It Matters
At $3/kg, the 45V credit could make green hydrogen cost-competitive with gray hydrogen for the first time — potentially unlocking the clean hydrogen economy.
Related Topics
Related Terms
Green Hydrogen
Hydrogen produced by splitting water (electrolysis) using renewable electricity. The process produces zero direct greenhouse gas emissions. Currently costs $4-$8/kg vs. $1-$2/kg for conventional (gray) hydrogen.
Electrolysis
The process of using electricity to split water (H2O) into hydrogen (H2) and oxygen (O2). The main electrolyzer types are PEM (proton exchange membrane), alkaline, and solid oxide (SOEC).