Preserving 45V: A Cornerstone for the eFuels Industry and America’s Clean Energy Leadership
- Catalyst
- Jun 27
- 2 min read
At Twelve, we’re pioneering a new category of fuel called eFuels, or electrofuels, that transforms captured CO2 and clean hydrogen into drop-in replacements for fossil-based fuels. It’s innovation that doesn’t just cut emissions; it charts a path to U.S. energy leadership. But that path is now at risk.
As the Senate continues its deliberations over which clean energy tax credits to support in the upcoming budget reconciliation package, we’re encouraged by recent reports that support for preserving the Section 45V Clean Hydrogen Production Credit is gaining ground. This momentum is heartening—and vital.
The 45V credit is the linchpin of America’s emerging hydrogen economy. Its premature phase-out would undercut the entire e-fuels industry before it fully takes root.
Here’s why that matters: eFuels (or power-to-liquid fuels) require clean hydrogen. Without it, we cannot unlock the full potential of the 45Z Clean Fuel Production Credit, which was recently proposed to be extended for four years. The two credits are designed to work in tandem. Remove one, and the economic engine driving clean fuels stalls.
The promise of these credits isn’t just theoretical—they are foundational to real investment, job creation, and energy security. eFuels produced by companies like Twelve are made entirely from domestic inputs, including biogenic CO2 (often captured from ethanol fermentation) and clean electricity. In that sense, our fuels are both low-carbon and proudly American.
More broadly, the clean hydrogen sector—supercharged by 45V—is poised to create thousands of jobs through the Regional Hydrogen Hubs and beyond. These hubs are national assets, but they require policy certainty to thrive.
If 45V disappears prematurely, the U.S. risks ceding its leadership in advanced fuels to global competitors. We risk missing the moment to shape the future of aviation, shipping, and heavy-duty transport—all sectors that will depend increasingly on drop-in e-fuels.
That’s why we at Twelve, alongside partners across the e-fuels ecosystem, are urging Congress to preserve Section 45V by extending the “begin construction” deadline to at least December 31, 2029. It’s a modest adjustment with massive upside—for rural communities, American manufacturing, and U.S. energy independence.
We believe in a future where U.S.-made fuels power the world.
We believe in a future where U.S.-made fuels power the world. With the Senate now considering its course, we urge policymakers to keep 45V in place and let American innovation do the rest.
