Turbocharged: Supersized Subsidies for Carbon Capture & Hydrogen are a Giveaway to the Fossil Fuel Industry

The document analyzes the Infrastructure Investment and Jobs Act (IIJA) of 2021 and the Inflation Reduction Act (IRA) of 2022, detailing how they provide billions in funding and tax credits for carbon capture, utilization and storage (CCUS), direct air capture (DAC), and hydrogen production. It specifically highlights the 45Q tax credit increases and the Clean Hydrogen Tax Credit, while criticizing provisions that link renewable energy permitting on federal lands to continued oil and gas leasing.

• The Infrastructure Investment and Jobs Act (IIJA) of 2021 authorized over $17 billion for Department of Energy pilot programs, including $3.5 billion for four regional Direct Air Capture (DAC) hubs, $3.5 billion for carbon capture demonstrations and large pilots, and $8 billion for four regional "clean" hydrogen hubs.
• The Inflation Reduction Act (IRA) of 2022 significantly increased the 45Q tax credits for carbon sequestration. When prevailing wage and apprenticeship requirements are met, the maximum available credits rise to $85/ton for storage and $60/ton for Enhanced Oil Recovery (EOR), while DAC credits increase to $180/ton for storage and $130/ton for EOR.
• The IRA introduced the Clean Hydrogen Tax Credit (CHTC), which provides a tiered subsidy based on lifecycle greenhouse gas emissions. While the highest credit of $0.60/kilogram is reserved for "qualified clean hydrogen" (less than 0.45kgCO2e/kgH2), the credit still supports fossil-based "blue hydrogen" produced from methane with carbon capture.
• The IRA includes provisions that tie the development of renewable energy on federal lands to the continuation of fossil fuel extraction. Specifically, the Secretary of the Interior is prohibited from issuing rights-of-way for onshore wind or solar projects unless certain oil and gas lease sales have been held.

APA

Center for International Environmental Law (2022). Turbocharged: Supersized Subsidies for Carbon Capture & Hydrogen are a Giveaway to the Fossil Fuel Industry. https://www.ciel.org/wp-content/uploads/2022/11/Turbocharged_-Supersized-Subsidies-for-CCS-Hydrogen-are-a-Giveaway-to-the-Fossil-Fuel-Industry-.pdf

Chicago

Center for International Environmental Law. Turbocharged: Supersized Subsidies for Carbon Capture & Hydrogen are a Giveaway to the Fossil Fuel Industry. 2022. https://www.ciel.org/wp-content/uploads/2022/11/Turbocharged_-Supersized-Subsidies-for-CCS-Hydrogen-are-a-Giveaway-to-the-Fossil-Fuel-Industry-.pdf.

Wikipedia

{{cite report |author=Center for International Environmental Law |title=Turbocharged: Supersized Subsidies for Carbon Capture & Hydrogen are a Giveaway to the Fossil Fuel Industry |date=October 2022 |url=https://www.ciel.org/wp-content/uploads/2022/11/Turbocharged_-Supersized-Subsidies-for-CCS-Hydrogen-are-a-Giveaway-to-the-Fossil-Fuel-Industry-.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{centerforinternationalenvironmentallaw2022turbocharged, author = {{Center for International Environmental Law}}, title = {{Turbocharged: Supersized Subsidies for Carbon Capture \& Hydrogen are a Giveaway to the Fossil Fuel Industry}}, institution = {Center for International Environmental Law}, year = {2022}, month = oct, url = {https://www.ciel.org/wp-content/uploads/2022/11/Turbocharged_-Supersized-Subsidies-for-CCS-Hydrogen-are-a-Giveaway-to-the-Fossil-Fuel-Industry-.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }