Senator Cassidy builds coalition for hydrogen investment extension in Louisiana

The Louisiana Legislature convened on August 25, 2025, to discuss significant developments in the state's clean hydrogen initiatives, focusing on the extension of tax credits and the potential for substantial investments in the hydrogen sector. The meeting highlighted the importance of both production and demand sides in fostering a robust hydrogen ecosystem, which is crucial for attracting major investments from the oil and gas industry.

Senator Cassidy played a pivotal role in forming a coalition with other Republican senators from states with hydrogen interests, such as West Virginia and Pennsylvania. This coalition successfully advocated for an extension of the 45V tax credit, which is expected to facilitate approximately $43 billion in investments in Louisiana's hydrogen projects. These investments are projected to create thousands of jobs in construction and ongoing operations, significantly benefiting the local economy.

The discussion also addressed the implementation of the 45V tax credit and the need for adjustments to ensure its effectiveness for companies in Louisiana. Industry representatives expressed concerns about the previous administration's final rule, which they deemed less beneficial. Instead of initiating a new rulemaking process, stakeholders suggested collaborating with the Department of Energy (DOE) to refine the GREET model, which governs the tax credit's application.

Key recommendations for the GREET model included allowing renewable natural gas blending with fossil gas, enhancing deliverability rules to enable energy attribute certificates from connected regions, and implementing hourly accounting for greenhouse gas emissions and electricity supply mix. These changes aim to provide greater certainty for developers and improve the bankability of hydrogen projects.

The meeting concluded with a commitment to engage with the DOE to advocate for these updates, emphasizing the importance of a supportive regulatory framework for Louisiana's hydrogen industry. The ongoing collaboration between state officials and industry stakeholders is seen as vital for maximizing the benefits of the extended tax credit and ensuring the state's leadership in the clean hydrogen sector.