Written by Cláudio Afonso | LinkedIn | X
The Biden administration released final rules on Friday detailing tax credits for clean hydrogen energy under the Inflation Reduction Act (IRA) lifting shares of industry players such as Nikola, Plug Power, and Constellation.
The Treasury Department’s final rules include a provision under the Inflation Reduction Act (IRA) extending tax credits to certain nuclear power plants aiming to incentivize hydrogen production with low carbon emissions.
The credit, offering up to $3 per kilogram of hydrogen produced, can total tens of billions of dollars and aims to expand hydrogen use in industries with high emissions, such as manufacturing and transportation.
Nikola, a Phoenix-based startup that manufactures fully electric and hydrogen-powered trucks, saw its shares rise 12% to $1.79 in Monday’s pre-market trading after a 24% gain on Friday.
Nikola’s su-brand HYLA focuses on hydrogen production, distribution, and dispensing solutions. The company’s Tre fuel cell electric vehicle (FCEV) “emits zero carbon, with water being the only byproduct,” Nikola claims.
Since Friday’s session low of $1.25, the stock has soared 44%. The company is expected to release its fourth-quarter sales data later this Monday.
“The extensive revisions we’ve made in this final rule provide the certainty that hydrogen producers need to keep their projects moving forward and make the United States a global leader in truly green hydrogen,” Biden’s senior climate adviser John Podesta said in a statement.
The rules address a contentious issue under the IRA, a 2022 law designed to lower greenhouse gas emissions. However, with President-elect Donald Trump set to take office later this month, it is unclear if the IRA will be revised by the incoming administration.
Separately, Trevor Milton, Nikola’s founder and former CEO, said last week he plans to share details about his time at the company. Milton later posted a video denying fraud allegations and defending the performance of Nikola’s trucks.
Answering a comment, the founder of the truck maker said, “Unfortunately I don’t think it [the company] can be saved.”
Written by Cláudio Afonso | LinkedIn | X
