The US will announce a hydrogen credit rule this week, with a pathway for nuclear power, sources told Reuters

WASHINGTON (Reuters) – The U.S. Treasury Department plans to release guidance on how to access tax credits for hydrogen production under the Inflation Reduction Act of 2022 later this week, according to two sources familiar with the matter.

The long-awaited guidelines will pave the way for credits for hydrogen produced using nuclear power, sources told Reuters, although details of the plan were not immediately clear.

The question of whether existing nuclear power plants should qualify for the hydrogen subsidy has been a major point of contention for the rule, and environmentalists say only hydrogen produced from new clean energy sources should receive the benefits.

One of the sources said the guidelines were likely to be released on Friday.

The US Treasury did not immediately comment.