California cities launch nation's first public hydrogen utility

First Public Hydrogen, a public utility created by the California cities of Lancaster and Industry, began selecting hydrogen suppliers at a Jan. 13, 2025, board meeting.

California cities launch nation’s first public hydrogen utility

Although the Inflation Reduction Act’s 45V tax credit was critical to its formation, the new utility hopes to avoid dependence on the federal incentive.

SmartCitiesDive.com | Emma Penrod | Jan. 30, 2025

Dive Brief:

First Public Hydrogen, or FPH2, a public utility created by the California cities of Lancaster and Industry, began the process of selecting hydrogen suppliers at a Jan. 13 board meeting, following the finalization of the 45V clean hydrogen production tax credit guidance.

Although FPH2 aims to avoid dependence on the 45V tax credits, the incentives are critical to driving hydrogen adoption, according to R. Rex Parris, mayor of the City of Lancaster and chair of the FPH2 board.

By acting as a public intermediary between buyers and sellers of hydrogen, FPH2 aims to make hydrogen more accessible, affordable and transparent, Parris said in an interview with Utility Dive.

Dive Insight:

California has a series of advantages for producing hydrogen — including an exemption from the energy procurement standards set earlier this month by the final 45V hydrogen tax credit guidance. While the tax credit played a key role in the timing of when the cities of Lancaster and Industry chose to launch FPH2, Parris said he believes there is a path for other municipalities to follow suit.

“While there are challenges at the national level, we believe the combination of 45V incentives and state-level initiatives will drive the necessary growth in renewable energy and hydrogen production to achieve scale,” Parris said. “That said, collaboration between states, the federal government, and private industry will be essential to ensuring sufficient supply.”...more
https://www.smartcitiesdive.com/news/california-lancaster-public-hydrogen-utility-45v/738766/



Hydrogen City

Creating a
Better Tomorrow.
Together.

The City of Lancaster, California, was the first
United States city to embrace hydrogen power,
earning the moniker of the “First Hydrogen
City.” The City has engaged in numerous
formal partnerships and agreements to harness
the potential of clean hydrogen. Lancaster is
jumpstarting hydrogen adoption throughout the
Antelope Valley and southern California.
https://www.cityoflancasterca.org/home/showpublisheddocument/44716/637975551313570000