Geographic deliverability regulations require hydrogen producers to source their clean energy from nearby areas
Geographic deliverability regulations require hydrogen to be produced in the same region of the country as the facility's clean energy source.1 This ensures that the clean energy hydrogen producers claim to use represents energy that is delivered to the local grid. This prevents hydrogen producers from claiming they are sourcing their electricity from a far-off energy source separated from the hydrogen production facility, while relying on nearby fossil fuels.2
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Footnotes
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Sanders, M. J., & August, C. (2024, April 1). The ‘Three Pillars’ of EAC Use and the Proposed Regulations for Clean Hydrogen Tax Credit. Morgan Lewis. https://www.morganlewis.com/pubs/2024/04/the-three-pillars-of-eac-use-and-the-proposed-regulations-for-clean-hydrogen-tax-credit ↩
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Haley, B. (2023, June 23). 45V Tax Credit: Three-Pillars Impact Analysis. Evolved Energy Research. https://www.evolved.energy/post/45v-three-pillars-impact-analysis ↩