Carbon Intensity
Legislation and subsidy mechanisms are color blind.
A significant number of governmental regulations and subsidies already impact and incentivize hydrogen producers. Most of these regulations focus on lowering the greenhouse gas footprint and thereby the carbon intensity. Every single CO2 saving counts in the energy transition.
Some countries encourage decarbonization with subsidies or incentives for low-carbon hydrogen production or carbon capture and storage (CCS). As an example, the US Inflation Reduction Act, promotes low-carbon hydrogen though subsidies which increase with reduced carbon intensity. A producer of ultra-low carbon intensity blue hydrogen using low methane emissions natural gas as feedstock, can qualify for up to $3/kg of hydrogen in tax credit. Thus, the business case for blue hydrogen has never been stronger.
CI numbers speak louder than colors.
The current spectrum of colors describing hydrogen is broad. But one should be aware that color is merely defined by how the hydrogen is produced. Not by calculating the value chain's total environmental impact.
The actual environmental impact of any hydrogen must be measured rigorously by considering the carbon intensity of each step in the value chain.
Do you want more specifics on carbon intensity calculations?
Have a look at the Greenhouse Gases, Regulated Emissions, and Energy Use in Technologies (GREET) model developed by Argonne National Laboratory and used in the Low Carbon Fuel Standard (LCFS) in California.
