Fueling A Green Revolution: The Global Push For Hydrogen Production Subsidies
Posted on 08 August 2023
Business Analyst – RE24
An Electrical Engineer and a Data Scientist. Experienced Business Analyst.
The world is at a turning point in the battle against climate change, and green hydrogen has emerged as a leading contender in the race towards a sustainable future. Governments worldwide are stepping up their efforts to support hydrogen production through a range of exciting subsidy schemes.
Here we unveil how the initiatives of countries like the UK, EU, USA, Germany, Canada, and India try to power a greener tomorrow.
UK: Pioneering Green Hydrogen Incentives
The UK is leading the charge towards a sustainable future with its hydrogen subsidy programs. The planned Hydrogen Business Model will offer ongoing support through Contracts for Difference (CfD). The Net Zero Hydrogen Fund will provide substantial grants of £240 million. The goal is ambitious – 10GW of low-carbon hydrogen by 2030.
EU: Embracing Green Hydrogen For A Cleaner Tomorrow
The European Commission’s Carbon CfDs subsidies for low-emission hydrogen promote a shift from natural gas to renewables in hydrogen production. Under this scheme, EU governments pay end users, not producers, a certain amount for carbon emission reduction. The program incentivises the complete switch to green hydrogen, ensuring a cleaner, more sustainable energy future.
USA: Embracing Low-Emission Hydrogen
The Inflation Reduction Act in the USA introduces the 45V Hydrogen Production Tax Credit, incentivising projects with low greenhouse gas emissions. This credit sets the stage for a cleaner hydrogen future, making strides towards a more sustainable energy landscape.
Germany, Canada And India: Leading By Example
Germany’s H2Global green hydrogen subsidy program and HintCo’s role in buying and selling low-emission hydrogen set a precedent for international cooperation in the green energy sector. Canada follows with its innovative tax credit system for hydrogen production, while India plans to use green hydrogen in key industrial sectors, accompanied by an impressive $2 billion incentive program.
The global push for hydrogen production subsidies presents a golden opportunity for individuals, companies, and nations alike to invest in a greener future.
Together, let’s pave the way for a greener and cleaner future!