The Department of Energy will provide $7 billion to initiate hydrogen production, storage, and delivery hubs across the United States. Funding is to specifically support seven Regional Clean Hydrogen Hubs that are expected to collectively meet about a third of U.S. 2030 clean energy production targets.
Hydrogen, while not widely produced in the U.S. at present, has been identified as a flexible energy carrier that may be made using a wide range of clean energy sources. It is also known as a viable alternative fuel for energy-intensive sectors that are otherwise difficult to decarbonize, such as industrial processes and heavy-duty transportation. All together, the new Hubs are expected to produce 3 million metric tons of hydrogen each year, reducing 25 million metric tons of carbon emissions–equivalent to the annual emissions of 5.5 million gas-powered cars.
Recipients of DOE support are to match funding, resulting in about $50 billion total investment toward the hubs. The announcement marks one of the largest investments in clean manufacturing and jobs in U.S. history and is expected to contribute to energy security along with national climate goals.
“Unlocking the full potential of hydrogen -- a versatile fuel that can be made from almost any energy resource in virtually every part of the country -- is crucial to achieving President Biden’s goal of American industry powered by American clean energy, ensuring less volatility and more affordable energy options for American families and businesses,” said U.S. Secretary of Energy Jennifer M. Granholm. “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.”
Hydrogen Hub proposals were evaluated based on several considerations, including how projects would benefit local communities and the growth potential of proposed hubs.
Seven projects were selected, including projects in the Gulf Coast, California, and the Appalachian region, among others. The DOE funding will work to offset the initial costs associated with hydrogen production, and private-sector investments have also been secured in order to promote market certainty for the Hubs. Selected projects represent a wide range of industries and accompanying goals.
The California Hydrogen Hub, for example, is partially backed by Amazon. The project, which was awarded $1.2 billion, aims to produce hydrogen from renewable energy and biomass only. Hydrogen produced will be used to decarbonize public transportation, heavy-duty trucking, and port operations.
Meanwhile, the Gulf Coast Hub, supported partially by ExxonMobil, will be powered by fossil fuel-based natural gas and carbon capture, along with renewable-powered electrolysis. The project will use hydrogen to power fuel cell electric trucks, industrial processes, and refineries, among other uses, reportedly lowering emissions by about 7 million metric tons each year.
