Biden Admin’s Latest Subsidy Proposal May Undercut Its Own Green Energy Agenda

From The Daily Caller

Daily Caller News Foundation


The Biden administration proposed eligibility rules for hydrogen industry subsidies Friday, but some conditions may ultimately stymie innovation and production of the technology, Bloomberg News reported.

Hydrogen is one of the key green energy technologies that the administration is counting on to replace fossil fuels on the path to reaching its goal of a fully decarbonized power sector by 2035. The proposed rules for billions of dollars of hydrogen subsidies are governed by strict environmental constraints intended to ensure that hydrogen production does not generate more emissions than it effectively cancels out, but green energy trade groups say that those conditions may actually stifle the nascent industry, according to Bloomberg.

The Biden administration and environmentalists consider hydrogen fuel to be a crucial tool to decarbonize heavy-duty transportation, as well as the production of steel and cement, according to Bloomberg. However, the hydrogen fuel production is in its infancy and has yet be proven effective and economical at scale. (RELATED: Companies Pressure Biden Admin To Allow Tax Credits For ‘Green’ Hydrogen Produced With Natural Gas)

Biden attempting to shove his green new dystopia down our throats.

— Daily Caller (@DailyCaller) September 18, 2023

The tax credits are meant to bridge that gap, but the proposed rules mandate that subsidy-eligible hydrogen can only be generated if new green power is being produced during the same hours, according to Bloomberg. Administration officials reportedly said that they chose to restrict the subsidies to hydrogen that is produced with green energy brought online within the last three years, on the same power grids and at the same times.

Several green energy trade associations and executives criticized the proposal. The guidelines “will fall woefully short in achieving the Administration’s decarbonization objectives” and “are counter Congress’ intent,” Andy Marsh, the CEO of Plug Power Inc., a hydrogen company, told Bloomberg.

“Unfortunately, the Administration proposal contains a fatal – but fixable – flaw that must be addressed to realize the economic, environmental, and climate benefits of commercially scaling a domestic green hydrogen industry … the rushed imposition of the most burdensome restrictions fails to acknowledge the market realities of new technology deployment,” American Clean Power Association CEO Jason Grumet said of the proposed rules. ” Specifically, imposing an hourly matching provision too early for first-wave green hydrogen projects will discourage a significant majority of clean power companies from investing in green hydrogen manufacturing and facilities.”

The green energy requirements attached to the eligibility rules could spawn a price premium of up to 150%, which would make hydrogen economically unfeasible for most potential applications, according to Bloomberg, which cited a previous analysis conducted by the American Clean Power Association.

The guidelines are still in draft form, and will now be subjected to a 60-day public comment period and potential revisions, according to Bloomberg.

The White House, the Treasury Department and the Energy Department all did not respond immediately to requests for comment.

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Tom Halla
December 23, 2023 6:07 pm

It is not a good idea to do the math on any green proposal if one wishes to support it. Indeed, it is a field that does not bear close examination, period.

Sweet Old Bob
December 23, 2023 6:13 pm

Well ….. didn’t O say Branden can eff up anything ?


December 23, 2023 6:38 pm

Hydrogen is a terrible fuel.

It explodes within a wide range of oxygen concentrations.

When it burns, the flame is invisible, so you have to wear infrared goggles to see the flame.

And, when burned, it creates water vapor which is a stronger greenhouse gas than CO2.

Reply to  scvblwxq
December 24, 2023 5:43 am

Hydrogen is also the “Houdini” molecule.
It can escape from anything.

Gary Pearse
Reply to  scvblwxq
December 24, 2023 5:10 pm

But here is the main ‘tell’. Natural gas is the cheapest, cleanest, most versatile and abundant commodity for generating electricity, heating your homes and cooking, plus employment in a host of industrial high temperature needs and making organic chemicals, plastics, fertilizers, etc.

After years of unrelenting damning, defunding and regulating natural gas almost out of existence and driving prices sky high, the Dark Side suddenly discovered that without it, there was no way renewables can work! So, they jumped on the bandwagon and pushed hydrogen as a substitute gas!

Naturally they ignored all the unattractive properties of this gas as they had done for the unattractive aspects of renewables. But you cant make fertilizers with it. So they banned fertilizers. And what about chemicals and plastics? They have been banning and restricting them, too.

All this to avoid accepting that their greatest achievement, windmills and solar panels is a huge, expensive and harmful nightmare that no amount of patching and hoping will ever make them work. They pinched their nostrils and accepted hydro first as a way to enable renewables (they added them as a renewable), but the right geography for it isn’t available everywhere. Most recently they have warmed towards the much hated nuclear …but only as a crutch for chronically crippled renewables!

December 23, 2023 6:56 pm

Hydrogen is one of the key green energy technologies that the administration is counting on to replace fossil fuels on the path to reaching its goal of a fully decarbonized power sector by 2035. 

The politicians who drool over hydrogen power and arrange massive subsidies to the favored companies who propose to get it going are another part of the political stampede to shower taxpayer dollars onto slick talkers. These are the ones who convince the Administration to ‘count on’ a dangerous, chemically tricky substance which corrodes pipelines, leaks through the tiniest spaces in the pipes and makes spectacular explosions after the leaks collect in a big enough blob.

Before any subsidies are lavished, it should be proven by a large-scale pilot project that hydrogen can be safely produced, stored and transmitted to its customers – who must in turn demonstrate sufficient care in its use to prevent said corrosion and explosions. The whole scenario is dubious.

Tom Johnson
Reply to  insufficientlysensitive
December 24, 2023 5:47 am

I would say you needn’t start with a large scale project when a small scale project will quickly prove the concept will fail. Start with a single home in Kansas and use only solar and wind to produce all the e energy needed for year around heating, electricity, and transportation for the family living in it. I would argue it will fail.

Curious George
Reply to  Tom Johnson
December 24, 2023 8:41 am

Have you heard that the UK is considering a switch to driving on the right side of the road? They may start with a pilot project with 200 London taxicabs 🙂

December 23, 2023 6:57 pm

“but the proposed rules mandate that subsidy-eligible hydrogen can only be generated if new green power is being produced during the same hours” I’m sorry, it sounds like that is the key to the story, but… what does that mean?

Peta of Newark
Reply to  FlaMan1
December 23, 2023 7:52 pm

Mmmmmm, me too.
I think it means that (qualifying) green hydrogen can only be manufactured when either the sun is shining or wind is blowing

Reply to  Peta of Newark
December 23, 2023 10:10 pm

Means they can’t cheat and get subsidies by making H2 with CH4 when the wind isn’t blowing or the sun isn’t shining.

December 23, 2023 7:30 pm

When I was in graduate school – 45+ years ago – Ballard Power was getting into fuel cells and were promising their energy systems would change the world. Same message today….

Reply to  Wester
December 23, 2023 10:14 pm

I remember that too, and I bought their stock more than a year ago, and of course their stock’s been in the toilet ever since.

December 23, 2023 7:48 pm

Wind, solar and hydrogen are not green, they are not sustainable, they are not affordable, they are not dispatchable and they are not reliable. Stop wasting our money on this crap.

Jamaica NYC
Reply to  Bob
December 24, 2023 8:18 am

Five great reasons why the government needs to help.

general custer
December 23, 2023 8:37 pm

Bloomberg is the corporate newsletter of Climate Anxiety Inc.

Frank from NoVA
December 23, 2023 8:43 pm

‘However, the hydrogen fuel production is in its infancy and has yet be proven effective and economical at scale.’

My guess is that hydrogen fuel production becomes ‘proven effective and economical at scale’ about the same time fusion does, but then, why bother?

Bryan A
Reply to  Frank from NoVA
December 23, 2023 10:37 pm

Perhaps producing Green Hydrogen will be a byproduct of Fusion. Or Fusion will become viable when an affordable Green Hydrogen Process is discovered.

Rod Evans
December 24, 2023 12:11 am

You have to smile when someone supportive of Green Hydrogen development comes out and says “it will make the hydrogen 150% more expensive, making it uncompetitive”
You would be in a utopian situation if the hydrogen option and the green hydrogen option in particular, was only 150% more expensive than conventional energy options.
The rapidly expanding economies of the world are proof of where energy costs are. All developing nations are looking to fossil fuels and coal in particular to power their economic growth. Only in the west with its declining industries and abandonment of low cost energy options are nonsense concepts like Green Hydrogen being proposed and only then because it is state funded.
Economics of energy cost plays no part in western energy planning decisions. It is blind obedience to the bizarre idea that CO2 is driving climate change which is clearly false.
The latest ideas flowing through, where state monitoring bodies such as the Met office here in the UK, are prepared to abandon actual data and insert modelling output to guide government policy, tells us how dystopian the Western world has become.

Peta of Newark
December 24, 2023 1:06 am

30 something years ago……
err, excuse me Mr Handstand, your theory appears to violate the 2nd Law. Please just quickly explain how it doesn’t

That’s all it would have taken
But no and instead a very real, continent sized and powered by The Ocean doomsday machine is directly above all our heads (unless it’s raining where you are) and is being utterly ignored in favour of kindergarten nonsense

In case you wondered what a bug felt when it was hit by a 100mph wind-shield, we’re all about to find out

Reply to  Peta of Newark
December 24, 2023 2:16 am

Was this box of jigsaw puzzle words actually meant to mean something? Is so, what?

Reply to  AndyHce
December 24, 2023 12:10 pm

I think it might be low blood sugar !
My wife is a Type 1 diabetic & when she goes low she comes out with nonsense like that, a quick sugar /glucose boost & she’s fine.

Richard Greene
December 24, 2023 2:46 am

Joe Bribe’em Administration

Pat from Kerbob
December 24, 2023 11:31 am

“The green energy requirements attached to the eligibility rules could spawn a price premium of up to 150%, which would make hydrogen economically unfeasible for most potential applications,”

What is the point of investing in hydrogen if it isn’t green?
That’s the whole point.

December 24, 2023 11:57 am



As part of the quest of having energy sources that produce near-zero CO2 emissions, energy systems analysts have looked at hydrogen as one such source. They see hydrogen as a possible fuel for transportation.

In California, the hydrogen economy movement has received support, in the form of subsidies and demonstration projects, from the state government and environmental groups, often supported and financed by prominent Hollywood actors.

Current Hydrogen Production

Hydrogen is used by the chemical, oil and gas industries for many purposes. The US produces about 11 million short tons/y, or 19,958 million kg/y.
At present, about 95% of the H2 production is by the steam reforming process using fossil fuels as feedstock, mostly low-cost natural gas. This process emits CO2. 

Hydrogen for Transportation

Proponents of H2-powered fuel cell vehicles, FCVs, in California think the hydrogen economy will be the future and a good place to start to reduce CO2 emissions from internal combustion vehicles, ICVs, would be to have near-zero-emission vehicles.
Here are examples comparing the fuel cost/mile of an FC light duty vehicle, an E10-gasohol IC vehicle, and an EV:
– Honda Clarity-FCX, using electrolytic H2 in a fuel cell, mileage about 68 mile/kg, or 14.8 c/mile, at a price of $10/kg at a fueling station in California. About $7/kg is electricity cost, and $3/kg is station cost. The H2 is not taxed. The average commercial electricity rate in California is 13.41c/kWh, which ranks 7th in the nation and is 32.9% greater than the US average rate of 10.09 c/kWh.$10-per-kilogram.aspx

– Honda Accord-LX, using E10-gasohol, mileage about 30 mile/gal, or 8.3 c/mile, at a price of $2.50/gal at a gas station in California; this price includes taxes, fees and surcharges.

– Tesla Model S, using 0.38 kWh/mile, at user wall outlet, includes charging and vampire losses of batteries, or 7.6 c/mile, at a price of 20 c/kWh, at user electric meter; this price includes taxes, fees and surcharges.

Electrolytic H2 Production

H2 fueling stations can produce electrolytic H2 at high pressure on site with electricity at commercial electric rates, or H2 can be produced by central plants with electricity at industrial rates (typically lower than commercial rates) and delivered by truck to fueling stations.

The turnkey cost of fueling stations is well over $1 million per site, whereas a multi-bay EV charging station costs about $25,0000. 
In early 2017, there were (25) H2 fueling stations in California. 
FCV drivers must go to an H2 station to refuel. 
EV drivers have flexibility, as they mostly charge at home, or at work, or at public places, such as shopping malls.


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