New 45V Clean Hydrogen Tax Credit Rules

On January 3, 2025, the US Department of the Treasury and the Internal Revenue Service finalized rules for the 45V Clean Hydrogen Production Tax Credit, marking a watershed moment in the clean energy movement. This game-changing law has positioned companies like Spritju at the forefront of the industry, as hydrogen producers must now prove their renewable energy credentials through Energy Attribute Certificates (EACs) to be eligible for the tax credits. This requirement is critical because qualifying for the credits provides financial benefits such as reduced tax liability that help lower production costs and enhance the economic viability of clean hydrogen. Under the 45V Clean Hydrogen Production Tax Credit, producers must demonstrate that their electricity is sourced from new, physically delivered renewable sources and that this energy is matched on an hourly basis with consumption. As this article unfolds, more light will be thrown on why this is huge for Spritju and the future of energy traceability.

The Treasury, IRS, and expert agencies, after months of intensive collaboration and consultation including over 30,000 public comments—have finalized rules on electrolytic hydrogen, or hydrogen produced using electricity. These regulations send a clear message: the era of simplified annual energy tracking has come to an end. The new rules mandate that hydrogen producers demonstrate precise compliance with three essential dimensions, a challenge that Spritju's platform is exceptionally equipped to tackle.

Precise Temporal Matching

The Treasury now requires hydrogen producers to match their electricity consumption with renewable generation on an hourly basis. Spritju's Energy Traceability Machine has already pioneered this level of precision, offering 8,760 times more granularity than traditional annual certificates. By using Spritju’s Marketplace, our clients are not just ready for current requirements—they're also prepared for the future of energy tracking.

Enhanced Deliverability Verification

Hydrogen producers must now prove that the renewable energy they use is physically delivered to their facilities, rather than just being purchased on paper. This new rule ensures compliance with the Treasury's deliverability requirements for clean electricity. Spritju provides immutable verification of energy sourcing through a blockchain-integrated platform and supports energy carriers with an AI-driven system. This system helps producers identify and document reliable renewable energy sources, ensuring transparency and compliance.

Incrementality Compliance

The new regulation states that hydrogen producers must use electricity from renewable energy projects that started within the last three years, rather than older sources. Spritju's platform simplifies this verification process via its advanced energy traceability system. With its clear tracking mechanisms, producers can easily prove their compliance with incrementality requirements and lower procurement costs by 20%.

By putting these capabilities together in one easy-to-use interface, Spritju provides hydrogen producers with the confidence that they are adhering to this new regulatory environment while maximizing the tax credit benefit.

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Graphic Design: Olabanji Stephen

Text Credits: https://home.treasury.gov/news/press-releases/jy2768