Assessment of Grid Connected Hydrogen Production Impacts

This technical report presents a literature review and framework regarding the impacts of grid-connected hydrogen production, particularly in the context of the Inflation Reduction Act (IRA) Section 45V. The report outlines a three-pillar framework that includes incrementality, temporality, and deliverability, which are essential for assessing greenhouse gas emissions associated with hydrogen production. It discusses the necessity of additional low-carbon energy sources to meet hydrogen demand without increasing grid emissions. The report also examines the implications of temporal granularity in matching electricity usage with hydrogen production, highlighting the differences between annual, monthly, and hourly matching. Furthermore, it addresses the potential economic impacts of these requirements on project development and production costs. This document serves as Part I of a two-part report, indicating initial considerations for implementing guidance on hydrogen lifecycle greenhouse gas accounting, with further exploration in Part II. The report aims to foster discussion on the flexibility of the proposed framework and its role in supporting sustainable hydrogen industry growth.