Companies are urging the US Treasury Department to ease proposed environmental requirements for tax credits on hydrogen projects, Reuters reported on Thursday. Companies fear the current proposal — which requires proving the use of clean electricity from the same region and around the same time as hydrogen production — could impede the industry's growth. The tax credit, known as the Clean Hydrogen Production or 45V credit, offers a 10-year incentive of up to USD 3 per kg for clean hydrogen production.

Some companies are looking for exemptions: Australian green energy firm Fortescue argued that the requirements would hinder its project in the Pacific Northwest, which would be disqualified from the tax credit because of plans to use a mix of surplus hydropower and renewables, Reuters writes. Industry groups like the Fuel Cell and Hydrogen Energy Association are seeking exemptions for projects launched before the guidance is finalized.

Others are in favor of the tight regulations: "Weak section 45V rules would undermine both the achievement of the Biden Administration’s climate goals and the credibility of the hydrogen industry," US-based Hy Stor COO Claire Behar told Reuters.

Schlumberger acquires majority stake in Norway’s Aker Carbon Capture: Energy multinational Schlumberger (SLB) inked an agreement to purchase an 80% stake in Aker Carbon Capture in order to merge its business and accelerate large-scale industrial decarbonization efforts, according to a statement published last week. SLB will pay NOK 4.12 bn (USD 400 mn) with potential additional payments up to NOK 1.36 bn over the next three years. Regulatory approvals are pending, and the transaction is expected to close by the end of 2Q 2024. Aker Carbon Capture signed a MoU with Saudi Arabia’s oil giant Aramco to explore partnership opportunities to employ carbon capture, utilization and storage in the kingdom last July.

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