Assessment of Grid Connected Hydrogen Production Impacts

This technical report evaluates the impacts of grid-connected hydrogen production, focusing on the clean hydrogen production tax credit established by the Inflation Reduction Act (IRA) Section 45V. It outlines a three-pillar framework for assessing greenhouse gas emissions related to hydrogen production, which includes incrementality, temporality, and deliverability. The report discusses the importance of these pillars in ensuring that hydrogen production does not lead to increased emissions. It also reviews literature on the implications of these pillars for the hydrogen industry and highlights the ongoing discussions among stakeholders regarding regulatory requirements. The report summarizes findings from a two-part analysis, emphasizing the need for a balanced approach to enable sustainable growth in the hydrogen sector while maintaining environmental integrity. The document also references proposed guidance from the U.S. Treasury regarding the tax credit and its relationship to the three-pillar framework.