Oklahoma has historically been home to oil and gasoline production. In 1927, oil production in the state reached its peak at 762,000 barrels per day. Although the US Energy Information Administration (EIA) reports Oklahoma’s crude oil production at roughly 469,000 barrels per day–only 60% of what it produced in its heydays–Oklahoma remains the fourth largest producer in the United States, behind Texas, North Dakota, and New Mexico.
With that in mind, it may be surprising that Oklahoma is diversifying its economy to incentivize hydrogen fuel production. Senator John Michael Montgomery, R, authored two bills, SB 1857 and 1858, to support tri-state initiatives (a partnership between Oklahoma, Arkansas, and Louisiana) by incentivizing the use of hydrogen-powered vehicles and hydrogen engineering. These bills passed the Senate in March 2022 and are now awaiting review by Oklahoma’s House of Representatives.
What are SB 1857 and 1858?
SB 1857 will promote the use of hydrogen-powered vehicles by including them in the state’s 10/10/10 vehicle tax credit plan. If passed, this program will provide $10 million in each of three categories:
- Towards qualified, clean-burning vehicles powered by compressed natural gas (CNG),
- For property with charging stations designed for electric motor vehicles, and
- Credits toward the purchase of hydrogen fuel cell electric vehicles. These credits may be claimed between 2023 and 2028, with a maximum credit of $100,000 for heavy-duty vehicles exceeding 26,501 pounds.
SB 1858 is designed to provide businesses with a tax credit for 50% of tuition paid (up to maximum limits) for employees seeking degrees in hydrogen engineering. The legislature hopes providing this incentive will increase the number of people entering the field, eventually resulting in a more highly qualified workforce for this growing industry.
What does this mean for hydrogen fuel in America?
Hydrogen fuel’s popularity is on the rise. While hydrogen-powered vehicles have primarily been limited to California due to infrastructure restraints, it is clear that other states have a desire to become less dependent on oil and petroleum–even when they’ve historically been primary producers of it. As the midwest expands its usage of hydrogen vehicles, it will need a robust refueling infrastructure to support it. PowerTap Hydrogen is one of the easiest and most economical ways for fuel station owners to diversify their products while minimizing risks associated with inventory management.
Now is the time for fuel station owners to diversify their products with hydrogen fuel.
PowerTap Hydrogen allows fuel station owners to produce hydrogen fuel on-site, with a production unit taking up less than 1,000 square feet of space. Our units can produce over 1,250 kg of pure hydrogen each day using only city water, natural gas, and electricity. With PowerTap Hydrogen, it’s possible to produce fuel at less than $2 per kilogram–that’s about $9 less than purchasing hydrogen fuel from a wholesaler or producing it onsite via alternative solutions.
If you’re interested in diversifying your current product mix or would like to begin a journey in the exciting future of alternative energy solutions, contact our team at the Andretti Group today. We’d love to show you how easy it is to be a part of the hydrogen fuel revolution.