The promise of an abundant and clean-burning alternative to oil and natural gas has captivated generations of politicians, executives and environmentalists.
As far back as 1977, when oil prices were a big concern in the United States, a Cadillac Seville fueled by hydrogen drove in President Jimmy Carter’s inaugural parade.
More recently, a signature law under President Joseph R. Biden Jr. offered generous tax credits to companies that made hydrogen in ways that release little or no carbon dioxide. That spurred a flood of investment announcements by many businesses.
But the hype around the fuel is fading fast — and not for the first time.
From Arizona to Oklahoma, companies are pulling the plug on clean hydrogen projects after Congress shortened the window for them to qualify for a Biden-era tax credit by five years. Projects now must be under construction by the end of 2027 to qualify, a hurdle that three-quarters of proposals most likely will not meet, according to Wood Mackenzie, an energy consulting firm.
Hydrogen is widely used to make fertilizer and to turn oil into gasoline, diesel and other fuels. It can also store energy, much like a battery, and be used to power cars or trucks, though it has long struggled to take off in those applications.
The appeal is clear: Using hydrogen produces water vapor instead of greenhouse gases. But the fuel is expensive, is hard to store and transport, and is made using lots of energy.
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The post America’s Clean Hydrogen Dreams Are Fading Again appeared first on New York Times.
