There is a danger that the U.S. Inflation Reduction Act (IRA) subsidies for hydrogen production (defined in provision 45V) may create perverse incentives that do not reduce emissions and may increase them. James Sallee at the Energy Institute at Haas explains why. The goal is to make “green” hydrogen powered by newly built clean energy. But what if the generously subsidised hydrogen is made from clean energy (new or not) that should be powering … [Read more...]