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

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.

Houston companies have been waiting for the final rule to be published to see if certain hydrogen produced by natural gas would be eligible for credits. The U.S. Department of Treasury has released its long-awaited final rule of 45V hydrogen tax credits — and it may help oil and gas producers in their hydrogen production efforts.

The Biden administration loosened some safeguards on a tax credit worth billions of dollars for production of so-called clean hydrogen, Bloomberg reported Friday. The tax credit created by the Inflation Reduction Act,