IRS Releases Guidance for Clean Hydrogen Projects Requesting a Provisional Emissions Rate

On April 10, the IRS released additional guidance for hydrogen producers whose hydrogen production pathways are not included in the 45VH2-GREET model. The guidance addresses requesting a provisional emissions rate from the Department of Energy (DOE to petition the Secretary of the Treasury for a provisional emissions rate (PER).

DOE Emissions Value Request Process

The new guidance specifies that an applicant must first complete a front-end engineering and design (FEED) study or similar indicia of project maturity, as determined by the DOE, prior to requesting an emissions value from the DOE. For purposes of the Clean Hydrogen Credit (Section 45V or Section 48 ITC) emissions value means the DOE’s analytical assessment of the lifecycle GHG emissions rate of the hydrogen production process at a hydrogen production facility.

Front-End Engineering and Design (FEED) study

Applicants must first complete a FEED study or similar indicia of project maturity, as determined by the DOE, such as project specification and cost estimate sufficient to inform a final investment decision before requesting an emissions value.   Currently, DOE requires a FEED study based on an Association for Advanced Cost Engineering Class 3 Cost Estimate to sufficiently indicate commercial project maturity for robust emissions analysis.

Emissions value request

A hydrogen facility requesting an emissions value from the DOE must submit to the DOE:

• specific sections of the FEED study as provided for in the DOE’s instructions to the emissions value request process; and
• an Emissions Value Request Form completed in accordance with the instructions.

The DOE will publish the instructions on its website prior to opening the application process.

Applicants, at their option, may provide additional information that they believe may be beneficial to the DOE in completing its lifecycle GHG analysis of the hydrogen production pathway for the applicant’s emissions value.

Filing an application

Applicants must submit an email to the DOE at 45VemmissionsRequest@ee.doe.gov that includes the applicant organization’s name and stating its intent to apply. The DOE will respond with an email containing a secure folder link to upload the application.

Comments Requested on the DOE’s Emissions Value Request Application Process

There is a 30-day request for comments period.  Some of the comments requested include whether additional procedures are needed for the application process; what information should be collected and considered by the DOE; and any other aspects of the emissions value request process.

For assistance with the Section 45V Clean Hydrogen Credit, please visit Weaver’s Inflation Reduction Act Resources page or contact us. We are here to help.

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