S&P Global: Constellation to build $900M green hydrogen production facility
By Allison Good on Feb. 16, 2023
Constellation Energy Corp. plans to build a $900 million hydrogen production facility in the Midwest that would combine new nuclear and green hydrogen generation tax credits to create material long-term cash flow.
The Inflation Reduction Act passed in 2022 includes a $3/kg tax credit for hydrogen produced by power sources that do not emit carbon, such as nuclear, as well as a production tax credit, or PTC, specifically for nuclear with floor pricing of $40/MWh to $44/MWh. Those incentives represent a lifeline for merchant nuclear plants, which struggled to continue operating in recent years, and what Constellation President and CEO Joseph Dominguez called a "holy grail" opportunity to create incremental value.
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