Policy support as of early 2021 is relatively meager as renewable hydrogen infrastructure is not eligible for production or investment tax credits. Crucially important decarbonization targets have not yet been established that would highlight renewable hydrogen as the least cost alternative to decarbonize many sectors. Electrification mandates for example zero emission vehicle mandates) often overlook hydrogen-fueled vehicles altogether.
Key policies for supporting the industry include:
- Binding decarbonization policies.
- Carbon emission caps or carbon taxes.
- Low carbon transportation fuel standards.
- Low carbon gas pipeline standards.
- Low carbon power plant fuel standards.
- Requiring transportation electrification plans to include hydrogen vehicles
- Production and/or investment tax credits for producing, transporting, and distributing renewable hydrogen.
- Hydrogen vehicle fueling infrastructure commitments.
- Ready access for dispatchable loads to the wholesale market place and discounted retail electricity tariffs that properly reflect the value of dispatchable loads to grid operations.
- Allowing large dispatchable loads to participate in energy imbalance and day ahead power markets.