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U.S. Department of Energy to invest $7 billion in new hydrogen hubs

By Brock Huffstutler

October 29, 2023

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The U.S. Department of Energy (DOE) will allocate $7 billion to launch seven Regional Clean Hydrogen Hubs (H2Hubs) across the nation aimed at accelerating the commercial-scale deployment of low-cost, clean hydrogen.

Funded by President Biden’s Bipartisan Infrastructure Law, the seven H2Hubs will kickstart a national network of clean hydrogen producers, consumers, and connective infrastructure while supporting the production, storage, delivery and end-use of clean hydrogen, DOE said.

The H2Hubs are expected to collectively produce three million metric tons of hydrogen annually, reaching nearly a third of the 2030 U.S. production target and lowering emissions from hard-to-decarbonize industrial sectors that represent 30 percent of total U.S. carbon emissions. DOE said that together, the H2Hubs will also reduce 25 million metric tons of carbon dioxide (CO2) emissions from end-uses each year — an amount roughly equivalent to combined annual emissions of 5.5 million gasoline-powered cars — and create and retain tens of thousands of good-paying jobs across the country while supporting healthier communities.

“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.”

Selected projects for negotiation include:

Appalachian Hydrogen Hub (Appalachian Regional Clean Hydrogen Hub (ARCH2); West Virginia, Ohio, Pennsylvania) — The Appalachian Hydrogen Hub is anticipated to create more than 21,000 direct jobs — including more than 18,000 in construction and more than 3,000 permanent jobs. (Amount: up to $925 million)

California Hydrogen Hub (Alliance for Renewable Clean Hydrogen Energy Systems (ARCHES); California) — This H2Hub is expected to create 220,000 direct jobs — 130,000 in construction jobs and 90,000 permanent jobs. (Amount: up to $1.2 billion)

Gulf Coast Hydrogen Hub (HyVelocity H2Hub; Texas) — The Gulf Coast Hydrogen Hub is expected to create approximately 45,000 direct jobs — 35,000 in construction jobs and 10,000 permanent jobs. (Amount: up to $1.2 billion)

Heartland Hydrogen Hub (Minnesota, North Dakota, South Dakota) — This H2Hub anticipates creating upwards of 3,880 direct jobs — 3,067 in construction jobs and 703 permanent jobs. (Amount: up to $925 million)

Mid-Atlantic Hydrogen Hub (Mid-Atlantic Clean Hydrogen Hub (MACH2); Pennsylvania, Delaware, New Jersey) — The Mid-Atlantic Hydrogen Hub anticipates creating 20,800 direct jobs — 14,400 in construction jobs and 6,400 permanent jobs. (Amount: up to $750 million)

Midwest Hydrogen Hub (Midwest Alliance for Clean Hydrogen (MachH2); Illinois, Indiana, Michigan) — The Midwest Hydrogen Hub anticipates creating 13,600 direct jobs — 12,100 in construction jobs and 1,500 permanent jobs. (Amount: up to $1 billion)

Pacific Northwest Hydrogen Hub (PNW H2; Washington, Oregon, Montana) — This H2Hub is expected to create more than 10,000 direct jobs — 8,050 in construction jobs and 350 permanent jobs. (Amount: up to $1 billion)

Learn more about the seven H2Hubs selected for award negotiations here.

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