Billions of dollars in hydrogen-industry subsidies from President Joe Biden’s signature climate law will come with stringent environmental safeguards, raising concerns that strict rules will stifle production of the nascent climate-friendly fuel.
Under the proposed rules laid out Friday, the new clean-hydrogen tax credit won’t benefit existing nuclear power plants, which is a blow to reactor owners such as Constellation Energy Corp. that lobbied for inclusion. Administration officials, however, said that could change when the guidelines are finalized.
