Assessing Lifecycle Greenhouse Gas Emissions Associated with Electricity Use for the Section 45V Clean Hydrogen Production Tax Credit

The document titled "Assessing Lifecycle Greenhouse Gas Emissions Associated with Electricity Use for the Section 45V Clean Hydrogen Production Tax Credit" addresses the following key points:

1. Section 45V Tax Credit and GHG Emissions: It discusses eligibility for the Section 45V tax credit under the Inflation Reduction Act, focusing on "lifecycle greenhouse gas (GHG) emissions" from hydrogen production. The analysis includes both direct and significant indirect emissions in the context of hydrogen production under Section 45V.

2. Energy Attribute Certificates (EACs): EACs are established methods for documenting and verifying electricity generation and purchase. They are particularly pertinent when assessing induced grid emissions. EACs from low GHG generators meeting specific criteria (incremental generation, geographic matching, temporal matching) can reasonably represent induced grid emissions as zero for hydrogen producers using them.

3. Role of Clean Hydrogen: Clean hydrogen is seen as pivotal in decarbonizing up to 30% of global energy-related CO2 emissions. The U.S. Department of Energy (DOE) has highlighted hydrogen's role in addressing climate change, enhancing energy security and resilience, and creating economic value.

4. Lifecycle GHG Emissions Impact of Electricity for Hydrogen Production: The paper considers the lifecycle GHG emissions impact of electricity used in hydrogen production. This includes hydrogen production methods like electrolysis, which rely heavily on electricity.

5. Assessing GHG Emissions from Electricity Use: The methodology for assessing lifecycle GHG emissions from electricity used in hydrogen production is explored. This includes considering both operational and structural impacts of increased electricity load on the grid.

6. EACs as a Contractual Mechanism: EACs are highlighted as a sound contractual mechanism for establishing claims of electricity purchases from specific sources. They are a key tool for hydrogen producers to document the lifecycle GHG emissions of their electricity use.

7. Methodologies for Calculating Marginal GHG Emissions: The document discusses methods for calculating marginal GHG emissions rates that consider operational and structural impacts, including the use of EACs to inform lifecycle GHG emissions from adding load to the grid.

In summary, the document provides an in-depth analysis of the lifecycle GHG emissions associated with electricity use in hydrogen production, particularly under the 45V tax credit, emphasizing the role of EACs in this process.

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