| | October 20248IS GREEN HYDROGEN PRODUCTION REALLY A SOLAR PLAY?IN MY OPINIONBy Doug Kilmer, Vice President, Resource Management, Renewables Delivery Team, TRC CompaniesDoug KilmerHydrogen as a replacement energy carrier is quickly advancing in the power and energy industry--the question is, will solar follow?Development of solar power generation at commercial scale has quickly advanced to a mature industry over the past 5 to 10 years. Gigawatts worth of solar modules have been installed across most states in the U.S. Now, hydrogen as a replacement for fossil fuels is being suggested as a means of extensive decarbonization of sectors such as power generation, transportation, and heavy manufacturing. The generation of green--or low to carbon free--hydrogen from water is one of the leading methods being explored. It is rapidly growing as its own industry and is being embraced by many independent power producers (IPP).Production of green hydrogen to support decarbonization of many different sectors and associated industries will necessitate the power source to be clean, low carbon generation. Tax credits for low carbon hydrogen production will be the primary incentive for at least the next decade. The tax credits, as defined by 45V (i.e., Title 26, Section 45V of the Internal Revenue Code) are based on the kilograms of carbon equivalent created per kilogram of hydrogen produced.The current draft rules express three pillars of 45V that will dictate how clean hydrogen production is powered, including:· Regionality: The renewable energy source powering hydrogen must be in the same Balance Authority or Department of Energy Transmission Needs Zones.· Additionality (or incrementality): Powered by new renewables constructed within 36 months preceding the hydrogen plant's operation (there is a 5-10% carve out for existing low carbon sources).
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