America's Promised Hydrogen-Fueled Future Is Stalled Over Tax Credits

The Promise of Hydrogen

Hydrogen fuel has long been touted as a clean and sustainable alternative to fossil fuels. It produces no emissions when burned, and it can be produced from a variety of renewable resources, such as water and natural gas.

In recent years, there has been a growing interest in hydrogen fuel cells, which can convert hydrogen into electricity to power vehicles and other devices.

The Stalled Tax Credits

One of the biggest obstacles to the widespread adoption of hydrogen fuel cells is the lack of tax credits. In 2005, Congress passed a tax credit of $1 per kilogram of hydrogen produced.

However, this tax credit expired in 2016, and it has not been renewed since. As a result, the cost of producing hydrogen has increased, making it less competitive with other fuels.

The Impact on the Hydrogen Industry

The lack of tax credits has had a significant impact on the hydrogen industry. In recent years, several companies have announced plans to build hydrogen fueling stations and hydrogen-powered vehicles.

However, many of these plans have been delayed or canceled due to the high cost of hydrogen production. The uncertainty surrounding the tax credits has also made it difficult for companies to invest in the hydrogen industry.

The Future of Hydrogen

The future of hydrogen fuel cells is uncertain. Without tax credits, it is unlikely that hydrogen will be able to compete with other fuels on a large scale.

However, there is still a lot of interest in hydrogen fuel cells, and many companies are continuing to invest in research and development. If the cost of hydrogen production can be reduced, hydrogen fuel cells could still play a major role in the transition to a clean energy economy.

Conclusion

Hydrogen fuel cells have the potential to revolutionize the way we power our vehicles and other devices. However, the lack of tax credits has stalled the development of the hydrogen industry.

If Congress can renew the tax credits, it could help to jumpstart the hydrogen industry and make hydrogen fuel cells a viable alternative to fossil fuels.