Guest post by Jim Willis of Marcellus Drilling News. For months, MDN has told you about a problem brewing that will block new hydrogen projects from getting built in the Marcellus/Utica (M-U). It’s an obscure tax rule known as the 45V tax credit, part of the misnamed Inflation Reduction Act (IRA). The Bidenistas at the White House, Treasury Department, and Dept. of Energy proposed a new IRS rule in late December that the 45V tax credits (as provided for in the IRA) can only be used if the hydrogen produced is “green” — meaning NOT made from natural gas.
For once, I agree with Biden’s puppeteers. Hydrogen makes no sense at all, with or without subsidies. Restricting subsidies to Green Hydrogen makes perfect sense to me. It makes hydrogen even more expensive and therefore much less likely to do permanent damage. If you have natural gas, burn the natural gas. Don’t pretend it is better to make hydrogen out of it. It isn’t better. It is stupid. Chasing subsidies is wrong, whether done by big wind or shale drillers.
For once, I agree with Biden’s puppeteers. Hydrogen makes no sense at all, with or without subsidies. Restricting subsidies to Green Hydrogen makes perfect sense to me. It makes hydrogen even more expensive and therefore much less likely to do permanent damage. If you have natural gas, burn the natural gas. Don’t pretend it is better to make hydrogen out of it. It isn’t better. It is stupid. Chasing subsidies is wrong, whether done by big wind or shale drillers.
I'm still learning. I thought natural gas is methane; CH4. What is "low methane" natural gas?