Clifford Chance

This publication considers the market trends that will impact pathfinder projects seeking commercial operations before 2030.

On January 3, 2025, the U.S. Department of the Treasury and the Internal Revenue Service released final rules implementing the Section 45V clean hydrogen production tax credit established by the Inflation Reduction Act. While some open questions are sure to remain, the Final Rules, together with an updated version of the 45VH2-GREET model and user manual (expected to be issued by the U.S Department of Energy by the end of this month), will provide project developers and investors with much-needed clarity on a particular project’s eligibility for the Section 45V credit.

Japan is promoting international supply chains for low-carbon hydrogen and derivatives. This briefing summarises some key aspects of the proposed supply chain subsidy based on discussion materials published by the Japanese government up to 31 July 2024.

The Morocco Offer (l'Offre Maroc) is the most significant step forward to date for the green hydrogen sector in Morocco and covers the entire green hydrogen value chain. The Moroccan Government announced this long-awaited framework in March 2024. The Morocco Offer responds to the increasing interest of investors and will leverage investment to drive employment and economic development. It focuses on development both horizontally (the full value chain from green power production to value-added manufacture of hydrogen derivative products) and vertically (the development of industries consuming hydrogen or hydrogen derivative products in Morocco).

The energy transition requires a massive and increased rate of investment from both the public and the private sectors. Here we explore some trends which will shape the year ahead, focusing on the innovations and legal developments that we are seeing in clean hydrogen, carbon capture and storage, green fuels, carbon pricing, digital transformation, innovative finance and incentives to mobilise capital.

This Client Alert provides a brief overview of Section 45V of Internal Revenue Code of 1986 (the "Code") and highlights the most important elements of the Proposed Rules – the calculation of lifecycle greenhouse gas emissions. Future client alerts will address other aspects of the Proposed Rules.

In this briefing, experts consider the key proposals of the Strategy, noting that the draft is out for public consultation and that some changes may be made to reflect market feedback. The deadline for responses was 20 June 2023.