ExxonMobil could delay its Baytown hydrogen production project — or even cancel it completely.
In the company’s second-quarter earnings call, CEO Darren Woods said the changes the "big, beautiful bill" made to the 45V hydrogen tax credit could be a problem for the hydrogen market. The bill made it so hydrogen projects must start construction by the beginning of 2028 instead of 2033 to be eligible for the tax credits. An earlier version of the bill was going to force projects to start construction by the end of this year.
Exxon previously told the Houston Business Journal that it was waiting for 45V tax credits to be finalized before moving ahead with a final investment decision on the project.
“We were disappointed that under the recently approved 45V tax credit, timing for startup of construction was shortened from 2033 to the beginning of 2028,” Woods said on the earnings call. "While our project can meet this timeline, we're concerned about the development of a broader market, which is critical to transition from government incentives.
More on this story at KHOU.
