Conservatives have an opportunity to embrace hydrogen energy, which will play a major role in energy diversification for years to come. Lawmakers should ensure the correct policies are in place to continue investment in Louisiana hydrogen, or thousands of jobs will be at risk.
Recent policy discussions in Washington, D.C. include repealing the 45V Clean Hydrogen Production Tax Credit for projects commencing construction after this year.
Any move to harm hydrogen production contradicts President Donald Trump’s America First vision for energy dominance. As the demand for power in the U.S. surges, the nation needs greater access to abundant, affordable, innovative, and dependable energy sources.
Tax policy that promotes hydrogen production in the U.S. is crucial in making President Trump’s America First vision a reality. These credits can enhance American energy security, improve our competitiveness globally, create jobs, and stimulate economic growth.
Yet, changing the rules for projects starting construction after this year would severely impact projects and jobs nationwide, particularly in Louisiana. According to Louisiana Economic Development, clean energy projects from 2018 to today have generated nearly 35,000 jobs and billions in economic output.
Clearly, the repeal of 45V threatens future projects from New Orleans to Baton Rouge, potentially resulting in jobs being eliminated across the state and innovation in the sector, while diminishing our ability to take the lead in the hydrogen market.
A recent report by Citizens for Responsible Energy Solutions Forum indicates the U.S. currently produces about 14% of the world’s hydrogen and, given its production capabilities, could generate 9.8 million metric tons of blue hydrogen by 2035 – enough to supply more than 18 million American homes.
Smart tax policy is needed to preserve about 3.4 million hydrogen production jobs by 2050 and over $140 billion in revenue for American businesses by 2030. In Louisiana, blue hydrogen production could create around 9,050 jobs annually during the construction phase (2025-2035) and around 17,500 permanent jobs once operational.
However, without these investments, this potential economic boon for Louisiana may be unattainable. According to a new report from The New York Times, New Orleans has emerged as a major hub for natural gas exports, thanks to carbon capture and hydrogen projects that help in reducing emissions. Michael Hecht, president of Greater New Orleans, Inc., said that “we’re becoming very diversified.”
Unfortunately, with the rollback of 45V, this diversification is at risk. Eliminating 45V would not only hinder American innovation and growth but also endanger American jobs and cede ground to international competitors, making it more difficult to compete with foreign entities like China, who are increasingly prioritizing investments in hydrogen and clean energy.
We hope lawmakers will consider the true value of hydrogen and the economic boom that comes with it. Failure to do so will complicate the challenge of achieving our American energy goals and Louisiana’s ability to lead this market into the future.
Will Hardy is the state director for Conservatives for Clean Energy Louisiana.
This article was originally published at www.thecentersquare.com
