Albemarle, Cummins receive tax credits under Biden's clean energy drive

Ballard Power Systems

19/04/2024 18:29

April 19 (Reuters) - Albemarle  ALB.N , Cummins  CMI.N 
and Siemens Energy  ENR1n.DE  are some companies that received
tax credit under a section of the Inflation Reduction Act (IRA),
according to details released on Friday by the U.S. Department
of Energy (DOE). 
    Thirty five projects, focused on electrical grid
enhancements, critical minerals, and electric vehicle
components, among others, got a total of $1.93 billion in tax
credits. 
    
    CONTEXT:
    U.S. President Joe Biden signed the landmark $430-billion
IRA into law in 2022. In March, $4 billion in tax credits were
announced to over 100 projects to accelerate clean energy
manufacturing under the Qualifying Advanced Energy Project Tax
Credit (48C).
    These credits would provide up to 30% of the investment
costs provided they meet U.S. wage and apprenticeship
requirements.
    
    WHY IT'S IMPORTANT:
    Renewable and clean energy are key to meeting the climate
goals set at the 2015 UN Climate Change Conference in Paris
aimed at limiting global warming.
    Soaring financing and materials costs, coupled with a slow
permitting process, have weighed on clean energy projects. 
   While U.S. investment in wind and solar power plants hit
record levels last year, the dramatic rate of expansion still
fell short of the level needed to meet the nation's climate
change goals.
    
    BY THE NUMBERS:
    Albemarle  ALB.N  is to receive $9.4 million in credits to
support the company's lithium carbonate production at its Silver
Peak Lithium Project facility in Nevada.
    Cummins  CMI.N  gets $10.6 million in credits for
large-scale proton-exchange membrane electrolyzer manufacturing
and testing at its Fridley, Minnesota plant. 
    Siemens Energy  ENR1n.DE  received $18.3 million in credits
to build its first Large Power Transformer (LPT) manufacturing
facility in the United States. 
    Other companies that previously reported credits under the
program are MP Materials  MP.N  and Ballard Power Systems
 BLDP.TO .
    
    

 (Reporting by Seher Dareen in Bengaluru; Editing by Sriraj
Kalluvila)
 ((Seher.Dareen@thomsonreuters.com; If in India call +91 74832
70128;))