Hydrogen Green Metrics Report WEEKLY HIGHLIGHTS - Week 6
Series—Week Six
In today’s sixth installment of highlights from the SEP report, we examine the criteria for hydrogen produced via electrolysis to be considered clean and qualify for the 45V tax credit.
Hydrogen is an indirect greenhouse gas with a GWP100 of 12. Atmospheric concentration is relatively low and annual hydrogen production-related leaks are a small fraction of total hydrogen sources. Growth in clean hydrogen production as part of the energy transition to decarbonize many hard-to-abate industries necessitates low leak rates.
Under 45V, tax credits are allocated to hydrogen producers based on well-to-gate emission ranges. Hydrogen with a carbon footprint between zero and 0.45 kilograms (kg) of carbon dioxide equivalent (CO2e) per kg of hydrogen qualifies for the maximum credit of $3 per kg (provided prevailing wage requirements are met).
To receive the full $3 per kg credit, an alkaline electrolysis system must use 97% to 100% zero-carbon renewables, while a PEM electrolysis system must use 98% to 100% renewables.
The SEP report Hydrogen Green Metrics investigates this and other environmental features of hydrogen production, transportation, and use. For more information, the report may be accessed here: https://www.saoradh.com/marketplace-new
—SEP Hydrogen Innovation Report, Chapter 2: Green Metrics, January 2025
About Saoradh Enterprise Partners
Saoradh Enterprise Partners (SEP) is a cleantech venture capital and research firm based in Boulder, Colorado. SEP partners with innovators, entrepreneurs, and corporations to develop cleantech solutions at the magical intersection of science (what’s possible), finance (what’s bankable), industry (what’s needed), and planet (what matters). Learn more at www.saoradh.com.
Media contact:
Jackson Levin, Business Development & Communications, Hydrogen Data Consortium
+1 (303) 448-2115 (office main number)
+1 (414) 405-3743 (cell)