Albany Times Union

Marsh: Tax credit could do industry harm

Plug Power CEO warns proposed clean hydrogen incentive may be hard to claim

- By Larry Rulison

COLONIE — The CEO of hydrogen fuel cell manufactur­er Plug Power says that the Biden administra­tion may be making a mistake with its proposed clean hydrogen tax credit.

The U.S. Treasury Department is expected to release the so-called 45V tax credit that would provide up to a $3 subsidy per kilogram of clean hydrogen produced through electrolyz­ers, which turn water into hydrogen. The new rules are expected to be officially released by the end of the year.

Currently, most hydrogen is made directly from natural gas, but Plug Power — which is based in Latham — has built its business strategy on producing clean hydrogen using this electrolys­is method. The company has been building industrial-scale electrolyz­er facilities across the U.S. and also internatio­nally.

The tax credit for clean hydrogen production would essentiall­y put clean, also known as green hydrogen, on par with hydrogen produced from fossil fuels. The tax credit was authorized under the bipartisan Inflation Reduction Act of 2022, which included many climate change provisions to encourage the use of more carbon-neutral technologi­es and fuels.

Earlier this month, several news outlets reported leaked details of the clean hydrogen tax credit rules. Among them is a requiremen­t that to be eligible for the tax credit, a production facility must be directly tied to new clean power sources such as wind or solar farms that have been built within the past three years, along with other stringent rules that would likely sideline potential projects.

Hydrogen advocates have said if the rules are too strict, they may do more harm than good getting the clean hydrogen industry off the ground.

Plug Power CEO Andy Marsh released a statement to the Times Union this week that showed how concerned Plug Power is about the proposed rules.

“As one of the first companies

See TAX, C9

 ?? Will Waldron/times Union archive ?? Plug Power CEO Andy Marsh delivers speech during a ribbon-cutting event for Plug Power’s new manufactur­ing facility on Jan. 12 in Slingerlan­ds. Marsh is worried rules for a new clean hydrogen tax credit could do more harm than good for the emerging clean hydrogen industry.
Will Waldron/times Union archive Plug Power CEO Andy Marsh delivers speech during a ribbon-cutting event for Plug Power’s new manufactur­ing facility on Jan. 12 in Slingerlan­ds. Marsh is worried rules for a new clean hydrogen tax credit could do more harm than good for the emerging clean hydrogen industry.

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