World’s first H2 usage subsidy and what it means

The entire energy industry is anxiously waiting for policies, subsidies and tenders to be announced in order for companies within the sector to decide on their preferred hydrogen strategy. This time around the state of Colorado passed a new law that provides tax credits of up to $1/kg for users of clean hydrogen within hard to abate sectors. The new subsidy represents the world’s first of its kind as up until now there have only been production related subsidies. Perhaps the US is afraid that businesses would take advantage of the Inflation Reduction Act (IRA) clean hydrogen production subsidies of up to $3/kg by producing the clean gas in the US, cash in the tax credits but sell it to…