ACP Green Hydrogen Framework
The American Clean Power Association (ACP) provides this consensus framework, negotiated amongst our “big tent” diverse membership, based on the shared goal of supporting the development of the new green hydrogen industry in the United States while at the same time providing robust guardrails to ensure that it is both clean and green. The implementation of the clean hydrogen tax credit has sparked an intense debate among stakeholders over how best to incentivize the development of a stable, long-term green hydrogen market that supports decarbonization goals. This compromise framework offers a roadmap for effectively balancing the dual priorities of supporting early-market development of green hydrogen with maintaining a rigorous and robust standard for ensuring clean production. The proposal is the result of considerable deliberation, analysis, and interaction with leading member companies in the clean power and green hydrogen industries, environmental organizations, and other stakeholders over the last several months.
Accelerating green hydrogen production through the Inflation Reduction Act’s clean hydrogen tax credits can help propel decarbonization across the economy — an estimated 90-million-ton reduction in carbon emissions each year by 2030. These large emissions reductions are due to the fact that green hydrogen is essential for decarbonizing key sectors of the U.S. economy that are difficult to abate through direct electricity usage — including heavy duty manufacturing, chemical production, and heavy-duty transportation. Green hydrogen will also drive demand for further investment in clean power and create tens of thousands of new domestic jobs.