California, known for its green initiatives, is urging the US Treasury to support green hydrogen production, even if it means using existing renewable energy projects. This move is controversial because it could lead to an increase in overall emissions.

Currently, the US Treasury is considering rules similar to the EU’s Delegated Acts, which require green hydrogen to be produced from newly built renewable projects in the same area as the electrolysers. Additionally, production must match power generation closely.

However, California’s Alliance for Renewable Clean Hydrogen Energy Systems (ARCHES) opposes these measures. While using renewable energy theoretically results in zero carbon emissions, critics worry that drawing power from existing grid assets may increase greenhouse gas emissions.

Moreover, requiring green hydrogen producers to match their consumption with renewable energy production annually could pose challenges. There might be times when clean energy isn’t available, leading to the use of fossil-based electricity for “green” hydrogen production.

The EU mandates hourly matching from 2030, ensuring electrolysers operate only when renewable electricity is abundant. However, California is advocating for flexibility in these regulations to accommodate real-world challenges.

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