As the public comment period closes, a diverse coalition of labor unions, energy innovators, businesses, and more called for including fugitive methane among the finalized hydrogen production pathways
 

With Monday’s closing of the public comment period for the U.S. Treasury Department’s proposed guidance on implementation of the Clean Hydrogen Production Credit, a diverse group of voices, including the Waste Gas Capture Initiative (WGCI), has called for fugitive methane capture—like methane emitted from active and abandoned coal mines—to be authorized as a qualifying hydrogen production pathway.

Including fugitive methane capture as a clean hydrogen production pathway is a crucial first step to ensure capture systems are effectively deployed, diversifying U.S. clean energy production, lowering greenhouse gas emissions, and creating jobs in the process. Read the WGCI’s own comment letter here. 

Read what other groups had to say on this important issue:
 

AFL-CIO – Washington, D.C.

• “The forthcoming guidance for 45V can do more to address these concerns. For example, the rule can make it clear that hydrogen producers may blend conventional natural gas with ultra-low carbon intensity coal mine methane, to bring down the life cycle emissions of blue hydrogen projects and allow access to a higher amount of tax credit. It would also be helpful for Treasury to reiterate that blue hydrogen projects can qualify for the 45V tax credit and to tie this to CCS rates, upper limits for emissions from energy use, etc. This technology-neutral approach not only reflects congressional intent but also ensures that energy communities can fully participate in the new low-carbon energy production economy as promised by President Biden.”

International Union of Operating Engineers (IUOE) – Washington, D.C.

• “Clean hydrogen, however, presents an opportunity for productive use of CMM. The GREET model, developed by Argonne National Lab, established that the [coal mine methane] CMM, due to its ultra-low carbon intensity profile, is a valuable feedstock for clean hydrogen production. The proposed IRS 45V credit guidance, however, does not guarantee full adherence to the GREET model and inclusion of CMM-based hydrogen to qualify for the full 45V credits. Without the full incentives, the 51 million metric tons annually of fugitive methane will continue to be emitted into the atmosphere and viable paths to hydrogen will not be available to the highly concentrated, hard-to-abate industries in the Appalachian region.”

North America’s Building Trades Unions – Washington, D.C.

• “A foundational component of the congressional intent of this tax credit was its focus on maintaining a technology neutral approach. This technology neutral approach must be maintained regardless of the type of energy source used to produce hydrogen. That is to say that if a hydrogen producer is able to demonstrate their carbon intensity regardless of the color associated, these producers should be eligible for the full benefit of the tax credit. This is applicable for natural gas producers and other forms of production including but not limited to coal mine methane and renewable natural gas which are currently not contemplated by the NPRM.”

Fuel Cell and Hydrogen Energy Association (FCHEA) – Washington, D.C.

• “Accordingly, the IRS and the Treasury should ensure that a wider range of feedstocks are included in the rule, particularly those with a negative carbon intensity, such as dairy, poultry, and swine-based feedstocks, as well as fugitive methane sources. In conclusion, any limitations on sources of waste are unimplementable, unjustified, and would arbitrarily constrain low-carbon gas development.”

Growth Energy – Washington, D.C.

• “The 45VH2-GREET Model is a successor model, and as such, must adhere to the best available science for calculating lifecycle GHG emissions consistent with the function and principles of the original Argonne GREET model. These foundational principles are similarly applicable to deployment of any 40B-GREET and 45Z-GREET model the Department of Energy may develop and IRS may require. Doing so will not only ensure adherence to the IRA and the accuracy of the lifecycle analysis, but also create stability and certainty regarding the significant investments being made in low-carbon energy and fuel sources.”

Rep. Chris Deluzio (D-PA)

• “For blue hydrogen projects to receive the full 45V tax credit, thus making the projects in the region economically viable, the final rule must include the recognition of fugitive methane, specifically coal mine methane (CMM), as a pathway and low carbon/clean fuel feedstock for hydrogen production. CMM was included in the Department of Energy’s 2023 GREET R&D model with the lowest carbon intensity score of any feedstock currently represented in the model. However, the proposed rule currently excludes CMM and Renewable Natural Gas from the 45V-H2 GREET Model. While the barring of this low carbon intense feedstock from the proposed rule has already muddled hydrogen investment and project planning, exclusion from the final rule would be scientifically inconsistent with the administration’s own finding and would have the potential to derail hydrogen projects in a region that has already been designated as a valuable ‘hub’ for this exact technology.”

Pittsburgh Business and Labor Community – Pittsburgh, PA (The Allegheny Conference on Community Development, the Allegheny/Fayette Central Labor Council AFL-CIO, and the Pittsburgh Regional Building & Construction Trades Council)

• “Our ability to drive this innovation forward and materially contribute to solving regional and national climate challenges hinges on reaching the full 45V credit for hydrogen production using [coal mine methane] CMM captured from existing coal mine infrastructure. Without that, coal regions like ours will lose the ability to fully participate in the hydrogen economy in ways that utilize their abundant assets, and importantly, the transformational CMM capture and use technology developed in our region will not provide its vast benefits to national security competitiveness and climate goals.”

Pennsylvania Gov. Josh Shapiro (D)

• “Fourth, and finally, as currently drafted, the 45VH2-GREET model would exclude key low carbon intensity sources for H2 production which have already been vetted and assessed by rigorous scientific review. This application of 45VH2-GREET would disincentivize the productive use of emissions abatement technologies that capture and utilize various fugitive methane sources such as coal mine methane (CMM) and accelerate the deployment of Carbon Capture and Sequestration (CCS) technology. These emissions abatement technologies should not be artificially excluded. To do so runs counter to US Federal methane reduction pledges and would steepen the climb to develop a strong hydrogen sector.”

Oberon Fuels – San Diego, CA

• “We are grateful to see Treasury and IRS moving forward with rules for hydrogen production from RNG and fugitive sources of methane. We suggest final guidance provide additional clarity on fugitive sources…Oberon strongly objects to the proposal requiring that the RNG (and presumably other biogas or other fugitive methane feedstock) must have hydrogen production as its first productive use.”

HYCO1 – Houston, TX

• “Including fugitive methane as a pathway for clean hydrogen production would encourage a standardized approach to managing [coal mine methane] CMM emissions and enable the kind of capital deployment needed to stop future CMM emissions. Stated simply, putting fugitive methane to productive use as a low carbon fuel resource through 45V would provide a market incentive to support the deployment of capture systems which in turn can support clean hydrogen projects.”

Allegheny County Airport Authority & Pittsburgh International Airport – Pittsburgh, PA

• “A balanced interpretation that fosters innovation, particularly with [coal mine methane] CMM for [sustainable aviation fuel] SAF, is essential. Policy frameworks should evolve to support science-based feedstocks and incorporate current R&D GREET model pathways into the 45VH2-GREET model, recognizing methane venting as a baseline scenario for evaluating CMM capture benefits. Harnessing currently unmitigated CMM from mining operations for SAF production advocates for a non-siloed, holistic system-level improvement. This approach transcends compartmentalized efforts, offering an integrated solution to environmental challenges. It aligns with the aviation industry’s mandates for cleaner energy sources.”

Crow Nation – Crow Agency, MT

• “The Crow Tribe is committed to developing energy resources for the benefit of tribal members. The expansion of fugitive methane capture practices, especially the capture and utilization of coal mine and coal bed methane, can stimulate economic growth and create thousands of good-paying jobs. The Crow Reservation’s unemployment rate sits at approximately 70%, significantly higher than the current unemployment rate in Montana. Fugitive methane capture and potential hydrogen production applications will support job creation for the Crow people who have been impacted by historical barriers to economic development faced by Indian tribes.”

Flandreau Santee Sioux Tribe of South Dakota– Flandreau, SD

• “Under the current 45VH2-GREET model, AFE is unable to qualify for any clean hydrogen production credit, as the model does not include a pathway for [autothermal reforming] ATR of Coal Mine Methane (“CMM”) with potential Carbon Capture and Storage (“CCS”). Moreover, the ambiguity and uncertainty surrounding the Provisional Emissions Rate (“PER”) process exacerbate the issue. This process requires substantial commitment of time and expenditure by a developer – in the tens of millions of dollars – without any assurance of the Department of Energy (“DOE”) authorizing the expected emissions rate. Consequently, a project using ATR of CMM does not have a clear path to determining its eligibility for clean hydrogen production credits, a hurdle not encountered by other technology pathways. This not only contradicts the technology-neutral drafting of section 45V, but it hinders the timely implementation of a significant source of energy security and decarbonization.”

CNX – Canonsburg, PA

• “The emerging clean hydrogen economy also provides a valuable opportunity to scale coal mine methane capture operations for use in producing other low Cl fuels, such as ammonia and sustainable aviation fuel. Therefore, the 45V Credit could prove to be a consequential economic catalyst across an array of critical goals including decarbonizing the mining industry and steel supply chains, mitigating a significant source of GHG emissions, increasing production of clean hydrogen, and providing substantial job creation in local communities most impacted by the energy transition.”

Anew Climate – Houston, TX 

• “In that spirit, Anew strongly urges Treasury and the IRS to implement Section 45V in a manner that fully leverages the tremendous methane abatement impact of low carbon gas in a clean hydrogen economy – whether in the form of blending RNG from agricultural wastes and manure, wastewater, or municipal solid waste, or CMM1 with natural gas for the production of clean hydrogen. In setting the rules for lifecycle emissions calculations under the 45VH2 GREET model, the Treasury and the IRS should recognize and adequately reward the tremendous climate benefits of avoided methane emissions that – without the IRA incentive – are likely to be vented directly into the atmosphere.”

Appalachian Regional Clean Hydrogen Hub (ARCH2) 

• “Fortunately, the section 45V credit has the potential to tip the economic scale to drive innovation and investment in capturing fugitive CMM emissions and utilizing this methane for clean hydrogen production. This outcome will be a true win-win for the Biden Administration’s goals of reducing greenhouse emissions, increasing clean hydrogen production, and creating jobs. This tremendous opportunity can become a reality through implementing section 45V, as we suggest below, representing a just environmental remediation opportunity for the Appalachian region, which has been among the hardest hit by the energy transition.”

About WGCI

The WGCI represents leading American energy industry partners, NGOs, and experts who are committed to recognizing the economic benefits and environmental impact of a strong mine methane capture industry. Visit wastegascapture.com and follow @WGCInitiative on X (formerly known as Twitter) and LinkedIn for more information.

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