Source: PowerTap Hydrogen Capital.
  • PowerTap Hydrogen Capital (MOVE) has provided an update on the U.S. Inflation Reduction Act (IRA) of 2022
  • The Inflation Reduction Act (IRA) will result in an investment of $369 billion in energy and climate change programs
  • The US$433B Inflation Reduction Act of 2022 creates a tax credit that would pay PowerTap, and other clean hydrogen producers up to $3 per kilogram
  • The IRA will allow PowerTap to expand its focus into the rest of the USA (outside of California) due to the needed attractive incentives to build hydrogen infrastructure
  • PowerTap Hydrogen Capital is focused on installing hydrogen production and dispensing fueling infrastructure in the U.S.
  • PowerTap (MOVE) opened trading at C$0.185

PowerTap Hydrogen Capital (MOVE) has provided an update on the U.S. Inflation Reduction Act (IRA) of 2022, recently signed by President Biden.

The act allows PowerTap to expand outside of California since incentives are now also at federal level.

The Inflation Reduction Act (IRA) will result in an investment of $369 billion in energy and climate change programs and will avoid 6.3 billion tons of cumulative greenhouse gas emissions by 2030.

The IRA provides the government support that will allow PowerTap to prioritize hydrogen as a solution that drives private sector investment in clean hydrogen.

The US$433B Inflation Reduction Act of 2022 creates a tax credit that would pay PowerTap and other clean hydrogen producers up to $3 per kilogram.

PowerTap’s blue hydrogen is the perfect solution for the U.S. market, given the abundance of natural gas and book-and-claim RNG infrastructure. With the passage of the IRA, the future of hydrogen as the green fuel of choice for heavy-duty long-haul transportation and existing fuel cell electric vehicles is assured. Given this and the current reality that there are only 100 active hydrogen fueling stations in the USA, thousands of hydrogen fueling stations are needed now and will be needed in the future.

This hydrogen federal tax credit that PowerTap expects to qualify for is on top of the State of California LCFS (Low Carbon Fuel Standard) hydrogen refueling infrastructure and dispensing carbon credits that PowerTap and other hydrogen producers will receive.

Raghu Kilambi, CEO of PowerTap, commented on the opportunity afforded by the IRA.

“The IRA will allow PowerTap to expand its focus into the rest of the USA (outside of California) due to the needed attractive incentives to build hydrogen infrastructure. We are also pleased that this legislation is awarding federal incentives, including tax credits, to both green and blue hydrogen producers in the United States. While we believe in green hydrogen (electrolysis) and have several investments in the green hydrogen space, we believe that blue hydrogen is the appropriate solution for the United States for the next decade due to the high cost of electricity needed to produce green hydrogen. We agree with Wes Edens’ (Co-Founder, Principal and Co-CEO of Fortress Investment Group, a US$ 50 billion asset manager) recent comments on CNBC that “blue hydrogen has the potential to have a much larger market share in the U.S than green hydrogen due to cost advantages and the use of natural gas and renewable natural gas.”

PowerTap Hydrogen Capital is focused on installing hydrogen production and dispensing fueling infrastructure in the U.S.

PowerTap (MOVE) opened trading at C$0.185.


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