Trump’s ‘Beautiful’ Bill Casts a Cloud Over Hydrogen’s Future

The U.S. House of Representatives recently approved a bill proposed by President Trump that aims to eliminate important tax credits for clean energy, specifically targeting the hydrogen and ammonia industries. The removal of these tax credits, such as the 45V hydrogen subsidy and the 48 Investment Tax Credit, poses a threat to major projects in the U.S. Companies like Air Products, CF Industries, and Plug Power have expressed concerns about the potential economic impact of losing these credits.

While the bill is now on its way to the Senate for further consideration, energy experts are warning about the negative consequences it could have on renewable energy sectors if passed into law. The bill seeks to phase out tax credits that have been crucial for the growth of green hydrogen and EV battery industries. The Section 45V tax credit, established during the Biden administration, has been particularly beneficial for low-carbon hydrogen and ammonia projects nationwide.

The potential repeal of these tax credits could significantly affect companies like Air Products, which received millions of dollars in federal tax credits in recent years. On a positive note, the bill does maintain tax credits for carbon capture and sequestration, providing some relief for certain energy companies. Exxon Mobil, for example, has invested in carbon capture projects aimed at reducing CO2 emissions from industrial processes.

Overall, the bill’s impact on the energy sector remains uncertain, with some companies facing potential financial challenges if the proposed tax credit cuts are implemented.