The Biden administration finalized rules meant to boost domestic production of hydrogen fuel through a new tax credit, a move that might also keep struggling nuclear power plants on line for longer.

The Biden administration said on Friday portions of nuclear power plants will be able to secure tax credits to produce clean hydrogen if the credits help to prevent reactors from retiring.

Biden's tax credit changes for hydrogen production could benefit companies like CEG, VST, PLUG, FCEL, SMR, LTBR, OKLO, LEU, and NNE.

Last year, the administration selected seven hydrogen hubs to receive up to $7 billion from the 2021 bipartisan infrastructure law. In mid-December, the Department of Energy launched environmental reviews for three of the hubs.

Key Takeaways Plug Power shares surged for a second straight session on new tax credit rules for clean hydrogen production.Last week, the Treasury Department issued the final rules for the tax credits spelled out in the Inflation Reduction Act of 2022.

The US’ 45V hydrogen tax credit is among the most – if not the most – generous incentives for hydrogen production in the world, according to industry experts.