{"id":323604,"date":"2024-04-26T08:54:58","date_gmt":"2024-04-26T06:54:58","guid":{"rendered":"https:\/\/climatescience.press\/?p=323604"},"modified":"2024-04-26T08:55:00","modified_gmt":"2024-04-26T06:55:00","slug":"fortescue-biden-forcing-green-hydrogen-producers-to-use-renewables-drives-up-prices","status":"publish","type":"post","link":"https:\/\/climatescience.press\/?p=323604","title":{"rendered":"Fortescue: Biden Forcing Green Hydrogen Producers to Use Renewables Drives Up Prices"},"content":{"rendered":"\n
\"\"<\/figure>\n\n\n\n

<\/p>\n\n\n\n

From Watts Up With That?<\/a><\/p>\n\n\n\n

Essay by Eric Worrall<\/strong><\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

\u201c\u2026 The \u201chourly matching\u201d rule will force hydrogen producers to either cease production when renewables are not available \u2026 or sign up for excess renewable power \u2026\u201d<\/p>\n\n\n\n

\n

Fortescue slams Biden administration\u2019s green hydrogen tax rules<\/strong><\/p>\n\n\n\n

Peter Ker<\/a><\/strong> Resources reporter<\/em>
Updated Apr 21, 2024 \u2013 2.09pm, first published at 2.00pm<\/p>\n\n\n\n

Fortescue says the proposed design of the Biden administration\u2019s green incentives scheme could triple the cost of low-carbon hydrogen projects \u2026<\/p>\n\n\n\n

The iron ore group has an ambitious strategy to become a major force in hydrogen and renewable energy \u2026<\/p>\n\n\n\n

\u2026<\/p>\n\n\n\n

But Fortescue\u2019s enthusiasm has waned since the US Treasury issued draft regulations known as \u201c45V\u201d<\/a> which provide the detail on eligibility for the tax credits. Fortescue\u2019s biggest problem is the requirement that companies must match each hour of production to an hour of renewable power generation and consumption to be eligible.<\/p>\n\n\n\n

The rule is designed to ensure that subsidies are not given to hydrogen made from fossil fuel power during times when solar and wind power are not available.<\/p>\n\n\n\n

The \u201chourly matching\u201d rule will force hydrogen producers to either cease production when renewables are not available<\/strong> \u2013 an option that would undermine productivity and viability \u2013 or sign up for excess renewable power<\/strong> from diverse sources to improve the chances of having clean energy available from at least one source at all times.<\/p>\n\n\n\n

\u2026<\/p>\n\n\n\n

\u201cIf I am building a gigawatt of electrolysers in Texas I may only need a gigawatt of energy at any time, but I have to buy seven times that to ensure that I have all the probabilities working, so I know I can match in that hour, which means the bulk of what I buy I don\u2019t need,<\/strong>\u201d he told a Bloomberg podcast.<\/p>\n\n\n\n

\u2026Read more (paywalled): https:\/\/www.afr.com\/companies\/energy\/fortescue-slams-biden-administration-s-green-hydrogen-tax-rules-20240419-p5fl78<\/a><\/p>\n<\/blockquote>\n\n\n\n

You can understand Fortescue\u2019s distress. Who could have imagined Biden would insist green projects actually be powered by renewables?<\/p>\n\n\n\n

As Fortescue helpfully explained, renewables are so unreliable\u00a0they would have to build or buy 7x overcapacity to ensure continuity of supply<\/strong>, which would be prohibitively expensive. A bit like how attempting to power the entire economy using renewables would be prohibitively expensive.<\/p>\n\n\n\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

\u201c\u2026 The \u201chourly matching\u201d rule will force hydrogen producers to either cease production when renewables are not available \u2026 or sign up for excess renewable power \u2026\u201d<\/p>\n","protected":false},"author":121246920,"featured_media":323608,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_coblocks_attr":"","_coblocks_dimensions":"","_coblocks_responsive_height":"","_coblocks_accordion_ie_support":"","_crdt_document":"","advanced_seo_description":"","jetpack_seo_html_title":"","jetpack_seo_noindex":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2},"jetpack_post_was_ever_published":false},"categories":[1],"tags":[691828348,691824798,691818772],"class_list":{"0":"post-323604","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","6":"hentry","7":"category-uncategorized","8":"tag-green-hydrogen-tax","9":"tag-renewable-green-energy-2","10":"tag-u-s-president-joe-biden","12":"fallback-thumbnail"},"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2024\/04\/0baf1e5ba0791fd82957c881bf4feeede.jpg?fit=1600%2C793&ssl=1","jetpack_likes_enabled":true,"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/paxLW1-1mbq","jetpack-related-posts":[{"id":292517,"url":"https:\/\/climatescience.press\/?p=292517","url_meta":{"origin":323604,"position":0},"title":"Biden Admin\u2019s Latest Subsidy Proposal May Undercut Its Own Green Energy Agenda","author":"uwe.roland.gross","date":"24\/12\/2023","format":false,"excerpt":"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.","rel":"","context":"In \"Green Energy\"","block_context":{"text":"Green Energy","link":"https:\/\/climatescience.press\/?tag=green-energy"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/12\/0Green_H2_Generation_Plants_IDOM.jpg?fit=1200%2C612&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/12\/0Green_H2_Generation_Plants_IDOM.jpg?fit=1200%2C612&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/12\/0Green_H2_Generation_Plants_IDOM.jpg?fit=1200%2C612&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/12\/0Green_H2_Generation_Plants_IDOM.jpg?fit=1200%2C612&ssl=1&resize=700%2C400 2x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/12\/0Green_H2_Generation_Plants_IDOM.jpg?fit=1200%2C612&ssl=1&resize=1050%2C600 3x"},"classes":[]},{"id":284000,"url":"https:\/\/climatescience.press\/?p=284000","url_meta":{"origin":323604,"position":1},"title":"Green Hydrogen Needs Vast Subsidies","author":"uwe.roland.gross","date":"19\/10\/2023","format":false,"excerpt":"Hydrogen is\u00a0not a fuel. Hydrogen must be\u00a0created;\u00a0it must be made from another energy source, just as electricity must be made from\u00a0other\u00a0energy. Global hydrogen trade may be just a pipe dream. From \u00a0Master Resource By Steve Goreham \u201cHydrogen from electrolysis, called green hydrogen, typically\u00a0costs\u00a0more than $5 per kilogram, or more than\u2026","rel":"","context":"In \"CO2\"","block_context":{"text":"CO2","link":"https:\/\/climatescience.press\/?tag=co2"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/10\/00Screenshot-2021-01-26-at-17.webp?fit=1027%2C500&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/10\/00Screenshot-2021-01-26-at-17.webp?fit=1027%2C500&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/10\/00Screenshot-2021-01-26-at-17.webp?fit=1027%2C500&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/10\/00Screenshot-2021-01-26-at-17.webp?fit=1027%2C500&ssl=1&resize=700%2C400 2x"},"classes":[]},{"id":261166,"url":"https:\/\/climatescience.press\/?p=261166","url_meta":{"origin":323604,"position":2},"title":"Sign Here: Corporate Fraudsters Ready to Cash In On Grand \u2018Green\u2019 Hydrogen\u00a0Plans","author":"uwe.roland.gross","date":"07\/06\/2023","format":false,"excerpt":"Loose talk about fast bucks to be made in so-called \u2018green\u2019 hydrogen has shysters salivating. 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