There are abundant state, federal and manufacturer-driven incentives to encourage the move to emission-free vehicles and reimburse most startup costs.
At the forefront of promoting the adoption of hydrogen FCEVs, California’s Zero Emission Vehicle (ZEV) regulation requires manufacturers to offer for sale the cleanest transportation available, such as hydrogen FCEVs. To support this initiative, the state provides California Capacity Credits to companies like HydogenXT to build hydrogen refueling stations. These credits generate revenue for the company as it adds fuel production capacity, and the reimbursement continues for 15 years.
Low Carbon Fuel Standard (LCFS) and Production Tax Credits (PTC) are another incentive provided by California. LCFS and PTC credits generate revenue for the company as soon as construction begins and continue through the entire life of the station.
The federal government also provides incentives for the purchase or lease of hydrogen FCEVs.
The federal government has allocated $369 billion for clean energy and climate change, including an additional $100k per site building incentive for ten years. The Inflation Reduction Act aims to reduce U.S. greenhouse gas emissions to approximately 40% by 2030. It provides a base credit of $0.60 - $3.00 per kilogram for hydrogen produced, making the U.S. clean hydrogen production's least expensive region. Carbon intensity must be within the range of 0-0.45 kilogram of CO2 equivalent. A $3/kg payment or credit drives hydrogen’s effective production cost to $0.73-$3.5/kg, making it one of the most significant pieces of energy legislation in the last decade.
With these credits, the cost of owning a hydrogen FCEV can be reduced. The combination of state, federal, and manufacturer-driven incentives can significantly reduce the start-up cost of buying or leasing hydrogen FCEVs.
