Energy Storage Please make a selection
Correct Answer
$3
The U.S. Congress' Inflation Reduction Act (IRA) passed in the summer of 2022 combines a wide array of clean energy tax incentives. An estimated $369 billion will be spent addressing energy security and climate change over the next 10 years. A key component of the IRA is a set of tax credits intended to accelerate deployment of clean energy technologies such as green hydrogen.
Under the law, renewable electricity producers can receive a production tax credit of 2.6 US cents/kWh and green hydrogen production facilities up to $3 per kg of hydrogen, for the first 10 years of operation
Given that the levelized cost of green hydrogen is estimated around $4-5/Kg currently (2022 end), a $3 credit, if being used in its full, brings down the realized cost to the producer to nearabout $1/Kg, the sort of Holy Grail for now. One presumes that was how the credit amount was arrived at in the first place!
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