The U.S. Treasury Department intends to release guidance on how to access tax credits for hydrogen production under the 2022 Inflation Reduction Act later this week, according to two sources familiar with the matter.

The long-awaited guidance will provide a pathway for hydrogen produced using nuclear power to access the credits, the sources told Reuters, though the details of that plan were not immediately clear.

American Marine project manager Matt Riedel disembarks the Sea Change while it is docked at Squalicum Harbor in Bellingham, Washington, U.S. The 70-foot, 75 passenger ferry, that is propelled entirely by hydrogen fuel cells, was built by All American Marine and conceived of by Switch Maritime. REUTERS/Matt Mills McKnight

The question of whether existing nuclear plants should be eligible for the hydrogen subsidy has been a major sticking point for the rule, with environmentalists saying that only hydrogen produced with new clean energy sources should be granted the perks.

One of the sources said the guidance would likely be released on Friday.

A spokesperson said the Treasury Department was working to finalize the guidance and that the agency was considering various requests related to the rules.