45V: API's Push for Hydrogen Expansion
The American Petroleum Institute (API) applauds the U.S. Treasury's guidance on the 45V tax credit, emphasizing the critical role of hydrogen in reducing emissions, especially in challenging industries like shipping and manufacturing. API urges a technology-neutral approach, citing the need for clear policies to build hydrogen infrastructure, aiming for 700,000 jobs and $140 billion economic benefit by 2030.
The American Petroleum Institute (API) welcomed the preliminary guidance by the U.S. Department of Treasury concerning the 45V tax credit. API's Senior Vice President, Dustin Meyer, hailed the expansion of the hydrogen economy as pivotal for substantial emissions reduction, particularly in industries grappling with high emissions like shipping, cement, and steel manufacturing.
Meyer highlighted the indispensable role of a diversified hydrogen economy in meeting emission reduction targets, advocating for the inclusion of all forms of low-carbon hydrogen. He stressed the importance of a technology-neutral approach and emphasized the need for comprehensive solutions to fortify hydrogen infrastructure.
Foreseeing the potential impact, a fully developed U.S. hydrogen economy could generate 700,000 jobs and contribute a $140 billion economic boost by 2030. However, current projections for hydrogen production capacity, estimated at 6.5 metric tons by 2030, lag behind the U.S. Department of Energy's goal of 10 metric tons by the decade's end.
API emphasizes the criticality of implementing clear and consistent policies, spanning from the Treasury's 45V guidance to facilitating the permitting process for hydrogen infrastructure. These measures are fundamental in achieving the Department of Energy's hydrogen goals, thereby expediting emission reductions across the economic spectrum.
API stands as the collective voice of America's natural gas and oil industry, supporting over 11 million jobs. Their nearly 600 members play a pivotal role in energy production, distribution, and advancing environmental and safety progress through API Energy Excellence®.
API's endorsement of the Treasury's preliminary guidance on the 45V tax credit underscores the pivotal role of hydrogen in steering emission reduction efforts across industries. A comprehensive, technology-neutral approach, coupled with robust policies for hydrogen infrastructure, is critical to actualizing the potential of hydrogen and paving the way for a cleaner energy future.