WASHINGTON – January 3, 2025 – The U.S. Department of the Treasury this morning issued final rules for the implementation of the Section 45V Clean Hydrogen Production Credit. Patrick Serfass, Executive Director of the American Biogas Council, issued the following statement in response:
“We are grateful to the Treasury Department for its diligence in creating these rules, which will incentivize the production of more renewable hydrogen, an important source of domestic clean energy for America.
“The new rules recognize the value of renewable natural gas (RNG) as a renewable feedstock for making clean hydrogen. The final rules address key issues within the Department’s prior proposal, including removing the first productive use penalty, which effectively treated existing sources of RNG like conventional natural gas. Today’s action more closely aligns with industry standards. Other adjustments made by Treasury ensure barriers to hydrogen production are limited, while preserving integrity of carbon intensity scoring, tracking and certification.
“By harnessing energy from organic material that would otherwise be wasted, biogas and RNG producers simultaneously reduce methane emissions while creating renewable energy. There are currently about 2,400 biogas projects in operation in America today, compared to a potential 20,000. These new rules will support increased production of RNG and biogas to make clean hydrogen which will allow our industry to expand their work to recycle waste in this way.”
“We look forward to working with the new Congress and the Trump administration on preserving these valuable tax incentives.”