Seven US hydrogen hub projects picked to share USD 7bn funding

The US government has selected seven regional clean hydrogen hubs to receive USD 7 billion (EUR 6.6bn) in federal funding under the Bipartisan Infrastructure Law as it aims to kickstart the hydrogen economy in the country.

The seven projects are expected to mobilise over USD 40 billion in private investment and produce more than 3 million tonnes of hydrogen per year, meeting nearly one third of the US clean hydrogen production goal for 2030.

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Around two-thirds of total project investment are associated with green, or electrolysis-based production, within the hubs, according to a White House statement today.

“With this historic investment, the Biden-Harris Administration is laying the foundation for a new, American-led industry that will propel the global clean energy transition while creating high quality jobs and delivering healthier communities in every pocket of the nation,” said US Secretary of Energy Jennifer M Granholm.

The hubs selected by the Department of Energy (DoE) for award negotiations are:

Appalachian Hydrogen Hub (Appalachian Regional Clean Hydrogen Hub (ARCH2); West Virginia, Ohio, Pennsylvania): It will use the region’s access to low-cost natural gas to produce low-cost clean hydrogen and permanently store the associated carbon emissions, the department said.

California Hydrogen Hub (Alliance for Renewable Clean Hydrogen Energy Systems (ARCHES); California): The hub will produce hydrogen exclusively from renewable energy and biomass. It is expected to provide a blueprint for decarbonising public transportation, heavy duty trucking and port operations.

Gulf Coast Hydrogen Hub (HyVelocity H2Hub; Texas): To be located in the region of the US energy capital of Houston, the project involves plans for large-scale hydrogen production using both natural gas with carbon capture and renewables-powered electrolysis.

Heartland Hydrogen Hub (Minnesota, North Dakota, South Dakota): It aims to help decarbonise the agricultural sector’s production of fertiliser, decrease the regional cost of clean hydrogen, and advance the use of clean hydrogen in electric generation and for cold climate space heating.

Mid-Atlantic Hydrogen Hub (Mid-Atlantic Clean Hydrogen Hub (MACH2); Pennsylvania, Delaware, New Jersey): It will support hydrogen-driven decarbonisation in the Mid-Atlantic while repurposing historic oil infrastructure. The plans include hydrogen production from renewable and nuclear electricity using both established and innovative electrolyser technologies.

Midwest Hydrogen Hub (Midwest Alliance for Clean Hydrogen (MachH2); Illinois, Indiana, Michigan): It will drive decarbonisation through strategic hydrogen uses including steel and glass production, power generation, refining, heavy-duty transportation and sustainable aviation fuel. Hydrogen will be produced from different energy sources, including renewable energy, natural gas and low-cost nuclear energy.

Pacific Northwest Hydrogen Hub (PNW H2; Washington, Oregon, Montana). It plans to leverage the region’s abundant renewable resources to produce clean hydrogen exclusively through electrolysis.

Individual awards range from USD 750 million to up to USD 1.2 billion.

The Bipartisan Infrastructure Law includes a total of USD 8 billion for a Regional Clean Hydrogen Hubs Programme. Up to USD 1 billion of the remaining funding will be used for demand-side support for the hubs, the administration noted.

Applications for the USD 7 billion in funding first opened in September 2022. The funding opportunity prompted the creation of coalitions among various partners from the public and private sectors in pursuit of support.

(USD 1 = EUR 0.942)