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After Fierce Lobbying, Treasury Sets Rules for Billions in Hydrogen Subsidies

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After Fierce Lobbying, Treasury Sets Rules for Billions in Hydrogen Subsidies

The Biden administration on Friday made final its long-awaited plan to offer billions of dollars in tax credits to companies that make hydrogen, in the hopes of building up a new industry that might help fight climate change.

When burned, hydrogen mainly emits water vapor, and it could be used instead of fossil fuels to make steel or fertilizer or to power large trucks or ships.

But whether or not hydrogen is good for the climate depends on how it is made. Today, most hydrogen is produced from natural gas in a process that emits a lot of planet-warming carbon dioxide. The Biden administration wants to encourage companies to make so-called clean hydrogen by using wind, solar or other low-emission sources of electricity.

In 2022, Congress approved a lucrative tax credit for companies that make clean hydrogen. But the Treasury Department needed to issue rules to clarify what, exactly, companies had to do to claim that credit. The agency released proposed guidance in 2023 but many businesses have been waiting for the final rules before making investments.

The final guidelines that were released Friday followed months of intense lobbying from lawmakers, industry representatives and environmental groups and roughly 30,000 public comments. They include changes that make it somewhat easier for hydrogen producers to claim the tax credits, which could total tens of billions of dollars over the next decade.

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“Clean hydrogen can play a critical role decarbonizing multiple sectors across our economy, from industry to transportation, from energy storage to much more,” said David Turk, the deputy secretary of energy. “The final rules announced today set us on a path to accelerate deployment.”

Initially, Treasury had imposed strict conditions on hydrogen subsidies: Companies could claim the tax credit if they used low-carbon electricity from newly built sources like wind or solar power to run a machine called an electrolyzer that can split water into hydrogen and oxygen. Starting in 2028, those electrolyzers would have to run during the same hours that the wind or solar farms were operating.

Without those conditions, researchers had warned, electrolyzers might draw vast amounts of power from existing electric grids and drive a spike in greenhouse gas emissions if coal- or gas-fired power plants had to run more often to meet the demand.

Yet many industry groups and lawmakers in Congress complained that the proposed rules were so stringent, they could throttle America’s nascent hydrogen industry before it even got going.

Among the concerns: The technology to match hydrogen production with hourly fluctuations in wind and solar power is still in its infancy. Owners of nuclear reactors also said that they had been left out.

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So the final rules contain several significant tweaks:

  • Hydrogen producers will get two extra years — until 2030 — before they are required to buy clean electricity on an hourly basis to match their output. Until then, they can use a looser annual standard and still claim the tax credit.

  • In certain states that require utilities to use more low-carbon electricity each year, hydrogen producers will now have an easier time claiming the credit, on the theory that those laws will prevent a spike in emissions. For now, Treasury said, only California and Washington meet this criterion, but other states could qualify in the future.

  • Under certain conditions, companies that own nuclear reactors that are set to be retired for economic reasons can now claim the credit to produce hydrogen if it would help the plants stay open. Existing reactors that are profitable would not be able to claim the credit.

  • The final rules also lay out criteria under which companies could use methane gas from landfills, farms or coal mines to produce hydrogen — if, for instance, the methane would have otherwise been emitted into the atmosphere.

The guidelines “incorporate helpful feedback from companies planning investments,” said Wally Adeyemo, the deputy Treasury secretary.

Some hydrogen producers said that many, though not all, of their biggest concerns had been addressed in the final guidance, which runs nearly 400 pages.

“There’s a degree of relief that the rules are, on balance, an improvement from the original draft,” said Frank Wolak, chief executive of the Fuel Cell and Hydrogen Energy Association, a trade group. “But there’s a lot in the details that needs to be evaluated.”

The lack of clear guidance had been holding up investment, said Jacob Susman, chief executive of Ambient Fuels, a clean hydrogen developer that is planning roughly $3 billion in projects across the United States. “Now that we actually have something solid, we can get down to the business of building,” he said.

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Environmentalists said that most of the safeguards in the original proposal to prevent emissions from surging had been kept in place.

“The extra flexibilities granted to the green hydrogen industry are not perfect from a climate perspective,” said Erik Kamrath at the Natural Resources Defense Council. “But the rule maintains key protections that minimize dangerous air and climate pollution from electrolytic hydrogen production.”

The Energy Department estimates that the use of cleaner forms of hydrogen could grow to 10 million tons per year by 2030, up from virtually nothing today.

But political uncertainty looms. A new Congress could repeal the tax credits, although hydrogen generally enjoys support from both Democrats and Republicans and a number of oil and gas companies have invested in hydrogen technologies. The Trump administration could also revise the rules around the credits, although that could take years.

Economics are another hurdle. Producing cleaner hydrogen still costs $3 to $11 per kilogram, according to data from BloombergNEF. By contrast, it costs about $1 to $2 per kilogram to make hydrogen from natural gas.

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The new tax credit will be worth up to $3 per kilogram, which could bridge the gap in some cases but not all. Technology costs would have to decline sharply.

Even with hefty subsidies to produce hydrogen, it’s not clear that enough buyers will emerge. Around the world, hydrogen companies have canceled several major projects over the last few years because of lack of demand. Steel makers and electric utilities that might have interest in the fuel often balk at the costly equipment required to use it.

“These new rules will probably help, even if they don’t go as far as many in industry wanted,” said Aaron Bergman, a fellow at Resources for the Future, a nonpartisan Washington research organization. “But there’s still the challenge of finding the people to consume the hydrogen you produce.”

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Video: Pentagon Releases U.F.O. Files

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Video: Pentagon Releases U.F.O. Files

new video loaded: Pentagon Releases U.F.O. Files

The Pentagon released “new, never-before-seen” U.F.O. files on Friday. The files include murky videos and still images that do not show anything definitive. The Defense Department said new materials would be released on a rolling basis.

By Jorge Mitssunaga

May 8, 2026

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Trump Plans to Fire F.D.A. Commissioner Marty Makary

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Trump Plans to Fire F.D.A. Commissioner Marty Makary

President Trump has signed off on a plan to fire Dr. Marty Makary, commissioner of the Food and Drug Administration, after a series of clashes over vaping, oversight of the abortion pill and a series of new drug application denials that rattled biotech companies, according to a person briefed on the matter, who was not authorized to discuss it publicly.

Dr. Makary had a high profile for an F.D.A. commissioner, appearing frequently on television and podcasts to sell the work he was doing at the agency on improving the food supply, speeding up some drug approvals and trying to restore agency morale after thousands of staff members left.

He tried to walk the tightrope between the business-friendly Make America Great Again movement, pledging to get rid of regulations that slow down innovation and to attract more drug trials to the United States. He was an ally of Health Secretary Robert F. Kennedy Jr.’s Make American Healthy Again supporters, voicing the skepticism of the pharmaceutical industry and authorizing natural food dyes.

Ultimately, Dr. Makary’s efforts were not enough to overcome the grievances of a growing band of enemies focused on selling tobacco, opposing abortion and seeing biotech therapies authorized.

Mr. Trump’s decision to dismiss him was first reported by The Wall Street Journal.

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The decision could still change, given Mr. Trump’s propensity to change his mind Dr. Makary has also proven persuasive with Mr. Trump in beating back previous efforts to oust him.

Leaving the White House Friday evening, Mr. Trump dismissed the idea that Dr. Makary would be fired.

“I’ve been reading about it, but I know nothing about it,” he said.

The White House has pressured Dr. Makary for months to authorize flavored e-cigarettes, according to a person close to the conversations. The approvals were a top wish of major tobacco companies that have been top donors to Mr. Trump. In March, the F.D.A. issued a memo saying that it would only authorize e-cigarettes in flavors such as mint, tea and spices. The memo said the fruit and candy flavors would be unlikely to pass muster, given their appeal to young people.

Pressure continued, though, and on Tuesday the F.D.A. authorized blueberry and mango flavored e-cigarettes by Glas, a small company based in Los Angeles.

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Abortion foes including Susan B. Anthony Pro-Life America have continued to turn up the heat on Dr. Makary, reiterating their call for his firing on Thursday. The group’s leaders and others view Dr. Makary as dragging his feet on a safety review of the abortion pill mifepristone, which they viewed as a way to highlight what they believe are dangers of the drug. Former Vice President Mike Pence, who also opposes abortion rights, amplified criticism of Dr. Makary on social media as well.

The administration has been under pressure from conservatives to tighten regulations on the prescribing and dispensing of mifepristone. The Supreme Court is reviewing a federal appeals court ruling that temporarily blocked abortion providers from prescribing the drug through telemedicine and sending it to patients by mail.

Biotech companies and their investors have also raised alarms with the White House about agency decisions to reject a series of treatments for rare diseases. The F.D.A. typically turns down about 20 percent of the applications it receives for drug approvals from companies.

Dr. Makary has been aggressive in defending the decisions, which he said came from career scientists who found the medications ineffective.

Dr. Makary also had to contend with a health secretary who seemed to view the F.D.A. as an avenue for getting his favored products authorized, exemplified by Mr. Kennedy’s social media post saying that the agency would end its “war on” stem cell treatments, peptides and raw milk. Mr. Kennedy pushed the F.D.A. to reverse a 2023 ban and allow the use of a number of peptides, unproven compounds purported to offer anti-aging or muscle-recovery benefits.

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Before leading the F.D.A., Dr. Makary was a cancer surgeon and health policy researcher at Johns Hopkins University School of Medicine. He was also the author of several books about the health care system.

Some of Dr. Makary’s more popular moves included encouraging broader use of hormone replacement products for women and lifting the F.D.A.’s warnings on them. He helped speed some promising drugs to market, including a pancreatic cancer therapy and the pill form of the popular GLP-1 weight loss drugs.

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Californians were aboard hantavirus-stricken cruise ship. Is there a risk to the public?

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Californians were aboard hantavirus-stricken cruise ship. Is there a risk to the public?

Some California residents were among the 147 passengers and staff aboard a luxury cruise ship stricken by a suspected outbreak of hantavirus that has left three people dead and several others severely ill, officials confirmed Thursday.

California public health officials say they are monitoring the situation after being notified by the U.S. Centers for Disease Control and Prevention that some state residents were passengers on the MV Hondius. The precise status of those individuals, however, remains murky.

Hantavirus is a rare but deadly disease that attacks the lungs and is typically contracted by humans through inhalation of particles contaminated with the urine, feces or saliva of a wild rodent.

However, Dr. Tedros Adhanom Ghebreyesus, director-general of the World Health Organization, confirmed Thursday that the Andes virus — a form of hantavirus that can spread from person to person — was involved in the outbreak.

Here’s what we know:

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The MV Hondius cruise ship anchored at a port in Praia, Cape Verde, on Wednesday.

(Misper Apawu / Associated Press)

As its name suggests, the Andes virus is typically found in South America. The Dutch-flagged MV Hondius was on a 46-day journey that traveled from Antarctica with stops in Argentina.

In the case of human-to-human transmission, a person would first be infected by a wild rodent’s contaminated particles and then pass the infection to someone else, said Dr. Gaby Frank, director of the Johns Hopkins Special Pathogens Center.

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“In previous outbreaks of Andes virus, transmission between people has been associated with close and prolonged contact, particularly among household members, intimate partners and people providing medical care,” Ghebreyesus said. “That appears to be the case in the current situation.”

None of the remaining passengers or crew members on the ship are symptomatic, he said.

The ship was not permitted to allow passengers to disembark at its original destination, Cape Verde, and is sailing for Spain’s Canary Islands.

“I want to be unequivocal here: This is not SARS-CoV-2. This is not the start of a COVID pandemic. This is an outbreak that we see on a ship. There’s a confined area,” Dr. Maria Van Kerkhove, who leads the WHO’s epidemic and pandemic management, said at a briefing. “This is not the same situation we were in six years ago. It doesn’t spread the same way like coronaviruses do.”

California passengers on the cruise

On April 1, 114 guests boarded the cruise ship in Ushuaia, Argentina. Twenty-three days later, 30 passengers — including six people from the United States — disembarked on a stop in St. Helena, a remote island about 1,100 miles off the coast of Africa, according to the cruise operator Oceanwide Expeditions.

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Public health agencies in California, Georgia and Arizona were notified by the CDC that some of their residents were among the passengers on the cruise. It’s unclear whether these individuals disembarked on April 24, however.

The CDC is assisting local health authorities with monitoring California residents who were aboard the cruise, according to a statement by the California Department of Public Health on Friday.

As of Friday, one passenger has returned to their California residence and is in contact with local public health officials, and at least one other remains aboard the ship, according to the state agency.

“We understand that news of an unusual outbreak can be concerning,” said Dr. Erica Pan, director of the California Department of Public Health. “Unlike influenza and COVID-19, years of experience in South America have shown that this Andes hantavirus rarely spreads between people.”

Officials said the current public health protocol is to do daily symptom monitoring and reporting.

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“As there are no known cases of Andes hantavirus infection from people without symptoms, and any spread has usually been limited to people with prolonged close contact with an ill person with this virus, the risk to the general public in California is extremely low,” the agency said in a statement.

In a statement earlier this week, the CDC also said that the risk to the American public “is extremely low” at this time.

“We urge all Americans aboard the ship to follow the guidance of health officials as we work to bring you home safely,” the agency said.

The others who exited the ship on April 24 were individuals from Canada, Denmark, Germany, the Netherlands, New Zealand, Switzerland, Sweden, Singapore, St. Kitts and Nevis, Turkey and the United Kingdom.

Of the remaining passengers still aboard the ship headed for Spain’s Canary Islands, California Department of Public Health said none were ill as of Friday.

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How many people have been infected?

The number of lab-confirmed hantavirus cases has risen to five, according to the WHO. There are three additional suspected cases.

A timeline of reported cases of hantavirus aboard the cruise ship can be found here.

The WHO is monitoring reports of other people with symptoms “who may have had contact with one of the passengers. In each case, we are in close contact with the relevant authorities,” Tedros said.

The first passenger to have been infected, a Dutchman, became sick aboard the cruise ship on April 6 and died on April 11.

No samples were taken, because his symptoms were similar to other respiratory diseases. His widow left the ship with his body on April 24 during the scheduled stop at St. Helena.

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“She deteriorated during a flight to Johannesburg on the 25th of April and died the next day,” Tedros said.

Before boarding the cruise ship, the Dutch couple had traveled through Argentina, Chile and Uruguay on a bird-watching trip, “which included visits to sites where the species of rat that is known to carry Andes virus was present,” Tedros said.

After leaving the ship, the woman was briefly aboard a KLM aircraft in Johannesburg bound for Amsterdam but was barred from the flight due to her medical condition, the airline said in a statement.

Dutch news outlets reported that a flight attendant on a KLM airplane — who briefly had contact with the widow — started feeling sick and had mild symptoms and was in isolation at a hospital in Amsterdam.

The flight attendant has since tested negative for the Andes virus, Dr. Jeremy Faust, an emergency medicine physician, wrote on his Substack blog, Inside Medicine, citing a text message sent to him by Tedros.

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“It is still possible that the flight attendant contracted the Andes virus. However, given our understanding of the virus, this information means that the flight attendant’s symptoms are not caused by the Andes hantavirus, but by some other medical illness,” Faust wrote.

More cases may be reported, because the incubation period — the time it takes between exposure to the virus and the onset of illness — for the Andes strain of the hantavirus is up to six weeks.

What we know about hantavirus

There are roughly 50 identified species of hantavirus. The virus that’s found in the Americas tends to cause a cardiopulmonary syndrome, a condition that affects the heart and the lungs, according to Frank.

There have been 890 laboratory-confirmed cases of hantavirus disease reported in the U.S. since surveillance began in 1993, according to the most recent data from the CDC.

From 1980 to 2025, 99 California residents have been diagnosed with a hantavirus infection, according to the California Department of Public Health.

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CDC officials said 38% of people who develop respiratory symptoms may die from the disease.

Still, the data suggest that contracting hantavirus is rare, said Dr. Afif El-Hasan, member of the American Lung Assn.’s national board of directors.

There is no vaccine or specific antiviral medicine for hantavirius.

Intensive-care treatment may include intubation and oxygen therapy, fluid replacement and use of medications to lower blood pressure, according to the American Lung Assn.

The signs of hantavirus

Early symptoms of hantavirus are similar to the flu and include fatigue, fever and muscle aches, according to the CDC. Symptoms start to develop within one to eight weeks after contact with an infected rodent.

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Half of those who contract the virus also experience headaches, dizziness, chills, nausea, vomiting, diarrhea and abdominal pain.

Four to 10 days after the initial phase of the illness, another round of symptoms can develop, which include coughing, shortness of breath and possible tightness in the chest as the lungs fill with fluid.

Even though contracting hantavirus in the U.S. continues to be a rare event, El-Hasan said, people should take these initial symptoms seriously and promptly seek medical care.

How to protect yourself

Hantavirus cases can occur year-round, but the peak seasons in the United States are the spring and summer, which coincide with the reproductive seasons for deer mice.

To lessen your risk of infection, keep wild rodents out of your home and other enclosed spaces by sealing any holes and placing snap traps.

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If you find evidence of mice, wear personal protective equipment and disinfect the area. When you’re done, put everything, including cleaning materials, in a bag and toss it in your trash bin.

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