The U.S. Department of Energy's (DOE) Office of Clean Energy Demonstrations (OCED) has announced the initial funding allocation for three of the seven Regional Clean Hydrogen Hubs (H2Hubs) unveiled in late 2023.
OCED has provided the California Hydrogen Hub—led by the Alliance for Renewable Clean Hydrogen Energy Systems (ARCHES)—with $30 million of the total federal cost share, which could reach up to $1.2 billion, to initiate Phase 1 of the project. Similarly, the Pacific Northwest Hydrogen Hub, led by the Pacific Northwest Hydrogen Association (PNWH2), has been awarded $27.5 million from a federal cost share that could total up to $1 billion. The Appalachian Regional Clean Hydrogen Hub (ARCH2), led by Battelle, has received $30 million from a potential federal share of up to $925 million to kick-start its plans.
In California, ARCHES leads efforts to build a network of clean hydrogen production sites, integrating multiple facilities at ports to decarbonize public transportation, heavy-duty trucking, and port operations. This initiative aims to reduce emissions by 2 million metric tons annually, equivalent to the emissions of 445,000 gasoline-powered cars. Phase 1 is set to last up to 18 months, encompassing planning, analysis, design activities, and continued stakeholder and community engagement.
The PNWH2 hub is dedicated to establishing a clean hydrogen ecosystem across Washington, Oregon, and Montana. The hub plans to leverage the region’s abundant renewable resources to produce hydrogen exclusively through electrolysis, utilizing clean, carbon-free energy. PNWH2 aims to reduce emissions in hard-to-decarbonize industries, such as transportation, agriculture, and electricity generation, by approximately 1.7 million metric tons per year. Phase 1, anticipated to last 12 to 18 months, will include foundational activities like planning, analysis, design, and community and labor engagement.
The expansion of hydrogen fuel cell vehicles in heavy-duty transportation seeks to improve air quality along high-pollution interstate corridors while enhancing connectivity and expanding a clean West Coast freight network that links the California and Pacific Northwest Hydrogen Hubs.
ARCH2 aims to tackle emissions and pollution that have historically impacted air quality in Appalachian communities. The hub plans to reduce carbon dioxide emissions by 9 million metric tons per year, equivalent to the annual emissions of more than 2 million gasoline-powered cars. Phase 1, expected to last up to 36 months, will focus on planning, analysis, design activities, and engaging stakeholders and communities across West Virginia, Ohio, and Pennsylvania.
CCUS, A False Solution; Carbon Capture is Not a Climate Solution
Despite the progress, concerns have been raised regarding the ARCH2 initiative. The Environmental Health Project, an advocacy group, criticized the DOE's decision to support certain ARCH2 projects that produce blue hydrogen from fossil fuels. The group argues that blue hydrogen relies on shale gas extraction, which could harm communities already affected by pollution. They recommend that public funding focus on transitioning to renewable energies, which promise better public health protections, job growth, and cost reductions. Transparency and community participation must be improved, and anticipated health risks of these projects should be fully assessed and communicated to frontline residents.
The DOE's investment in Regional Clean Hydrogen Hubs marks a significant step toward reducing emissions and advancing clean energy across key U.S. regions. While these initiatives hold promise for transforming the energy landscape, addressing community concerns and ensuring transparent, sustainable practices remain crucial for their long-term success.
