WASHINGTON—The White House is gearing up to inject a gusher of cash into hydrogen production, an undeveloped sector that it is betting will play a pivotal role in the country’s shift away from fossil fuels. The Biden administration on Friday plans to announce $7 billion in grants for seven regional hubs to produce clean hydrogen, a potential substitute for oil and gas in shipping, steelmaking and chemical production, senior administration officials said. It dovetails with upcoming rules on how energy producers can qualify for billions of dollars in tax credits, which are intended to make the cost of clean hydrogen production competitive with hydrogen made from natural gas. The grants will be awarded to regional hubs, which include state and local partners as well as hydrogen suppliers, industrial buyers and energy infrastructure companies that will contribute funding to supplement the government grants. The Biden administration’s hydrogen grants and tax credits are among the richest subsidies in the infrastructure law and climate law known as the Inflation Reduction Act.

Source: Wall Street Journal October 13, 2023 23:44 UTC