The Biden administration finalized rules meant to boost domestic production of hydrogen fuel through a new tax credit, a move that might also keep struggling nuclear power plants on line for longer.

Hydrogen startups are widely seen as a promising way to eliminate fossil fuels from heavy industry and long-haul transportation. But they have been stuck

The US’ 45V hydrogen tax credit is among the most – if not the most – generous incentives for hydrogen production in the world, according to industry experts.

Various stakeholders within the nuclear industry say the clarity provided by the Treasury Department’s hydrogen tax credit rules is a positive step rather than a thorough solution to the obstacles they face in a nascent global hydrogen market.

The Biden administration released long-awaited final rules Friday for a tax credit that will send billions of dollars to producers of cleaner hydrogen.

The Biden administration said on Friday portions of nuclear power plants will be able to secure tax credits to produce clean hydrogen if the credits help to prevent reactors from retiring.

The final rule for clean-hydrogen production would allow some nuclear power plants that are at risk of retirement to produce the gas.

Plug Power shares surged for a second straight session on new tax credit rules for clean hydrogen production. Last week, the Treasury Department issued the final rules for the tax credits spelled out in the Inflation Reduction Act of 2022.