The United States will this week introduce hydrogen credit legislation for the nuclear road, sources told Reuters.

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WASHINGTON (Reuters) – The U.S. Treasury Department plans to release guidance later this week on how to obtain tax credits for hydrogen production under the 2022 Deduction for Inflation Act, two sources familiar with the matter said.

The long-awaited directive would provide a way to access the credits for hydrogen produced using nuclear power, the sources told Reuters, although details of that plan were not immediately known.

The question of whether existing nuclear plants should qualify for hydrogen subsidies has been a major sticking point for the rule, with environmentalists saying only hydrogen produced by new clean energy sources should be given the benefits.

© Reuters April 7, 2022 U.S. Navy project manager Matt Riddell disembarks Sea Change as it docks at the Esqualicum Harbor in Bellingham, Washington, U.S. , was built and conceived by Switch Maritime across the American Seas. Image taken on April 7, 2022. REUTERS/Matt Mills McKnight/File photo

One of the sources said the directive is likely to be issued on Friday.

The US Treasury Department did not immediately comment.

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