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 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.

The final rule for clean-hydrogen production would allow some nuclear power plants that are at risk of retirement to produce the gas.

The US Treasury’s much-awaited response on the implementation of 45 hydrogen tax credits sees greater timeline flexibility and provisions for nuclear operators.

The Biden administration loosened some stringent safeguards on a tax credit worth billions of dollars for hydrogen production, after companies argued the rules would stifle domestic manufacturing of the fuel.

With a lucrative tax credit, the Biden administration is hoping to establish a new industry that might help fight climate change.

Hydrogen projects had been waiting for the rules, which determine what ventures are eligible for incentives under the 2022 Inflation Reduction Act.