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This briefing argues that weak Treasury guidelines for the 45V hydrogen production tax credit could increase wholesale electricity prices for consumers. It advocates for the strict application of three pillars—additionality, deliverability, and hourly matching—to ensure that new electrolyzer demand is offset by new clean generation, preventing the price spikes associated with large-scale electricity loads like cryptocurrency mining.

This appendix provides a financial viability analysis of 'export-only' electrolyzer projects in the United States, which utilize co-located new clean energy resources and allow for opportunistic electricity sales to the grid. The analysis concludes that such projects, which comply with the three principles of additionality, deliverability, and hourly time-matching, are competitive across large portions of the U.S., suggesting that rigorous 45V tax credit guidance regarding lifecycle greenhouse gas emissions would not hinder industry growth.