Plug Power CEO Andy Marsh was asked on Plug Powers’s Q2 2024 earnings call if he expects any news on the guidance from the U.S. Treasury regarding the Section 45V credit tax credit for clean hydrogen production, part of the Inflation Reduction Act.
He replied that is expecting a loosing of the “Three Pillars” after the democratic convention, but notes that even after the Treasury announcement, ‘gigawatt scale’ projects could still be 12-18 months away from Final Investment Decision (FID). His full answer:
Plug Power CEO Andy Marsh :
I think where you will see potential changes after the convention probably has to do with the three pillars, and I know you’re well versed in the three pillars, Scott. I think you’ll see relaxation associated with additionality.
And I think that nuclear power, as well as hydropower and maybe states with renewable energy programs getting — receiving relaxation on additionality.
I think when you look at post the election, you may see that the regulation associated with time matching will start looking more like Europe. And I think the regionality issues will be slightly less restricted. And I think that’s probably what will happen. And when you look at it, obviously,
I think we may have talked before the Chevron announcement, and I told you Chevron was going to have a dramatic impact, especially on those two other items.
And I think you’ll start seeing that. I think from a decision-making for FID I think many of these programs, it takes probably 18 months to get to FID. I think in many of the U.S. programs, the companies I know some significant programs where work is being done.
But I think it’s a year for the big projects, I mean, the gigawatt scale project after the announcement to get to where you’re actually issuing POs. So I think that’s probably the time frame once — and this is especially with the electrolyzers, I think there may be smaller deployments which will happen more rapidly than that. But when you’re talking about investing $2 billion to $3 billion, it’s going to take time.
