The US Department of Energy (DoE) has announced up to $2.2bn in funding commitments for two new regional clean hydrogen hubs (H2Hubs) under President Joe Biden’s “Investing in America” agenda.
Secured by the Gulf Coast and the Midwest H2Hubs, the financing awards are expected to expedite the commercial-scale deployment of low-cost, clean hydrogen, which can be produced with little to no carbon emissions.
These H2Hubs are key components of the DoE’s programme established under the Bipartisan Infrastructure Law.
The initiative aims to build a national network of hydrogen producers, consumers, and infrastructure along with supporting clean energy production, storage, delivery and use.
According to the DoE, an equitable domestic clean hydrogen economy will support the country’s economic growth, generate good jobs, and reduce emissions.
The Gulf Coast hub, led by HyVelocity, will receive up to $1.2bn in federal cost-share funding. This project is expected to generate approximately 45,000 direct jobs over its lifetime.
Located in Texas, the hub plans to utilise the region’s natural gas and renewable energy resources to produce hydrogen through electrolysis and by utilising carbon capture and storage.
The Midwest H2Hub, led by the Midwest Alliance for Clean Hydrogen (MachH2), will benefit from up to $1bn in funding.
This hydrogen hub is located in a major US industrial and transportation corridor spanning Illinois, Indiana, Iowa, and Michigan. The hydrogen project will leverage wind, nuclear, and natural gas energy sources.
The initiative anticipates creating around 12,000 direct jobs and decarbonising industries including steel and glass production, manufacturing, refining, power generation, and heavy-duty transportation.
US Secretary of Energy Jennifer Granholm said: “The Biden-Harris Administration has followed through on its promise to kickstart a new domestic hydrogen industry that can produce fuel from almost any energy resource in virtually every part of the country and that can power heavy duty vehicles, heat homes, and fertilise crops,”
“Today’s announcement marks a major milestone in DOE’s Hydrogen Hubs program, signalling our deep commitment to strengthening America’s energy security and boosting our economic and global competitiveness while also tackling the climate crisis.”
These new hydrogen hubs join three others previously announced as part of the DoE’s H2Hubs programme. The other hubs are Appalachian hydrogen hub (ARCH2), California hydrogen hub (ARCHES), and Pacific Northwest hydrogen hub (PNWH2).
The Heartland hydrogen hub (HH2H) and Mid-Atlantic clean hydrogen hub (MACH2) are two other projects selected by the DoE under award negotiation.
Collectively, the seven H2Hubs aim to produce millions of metric tons of hydrogen annually and support the US in reaching its 2030 hydrogen production targets.
Besides, these hydrogen projects are anticipated to reduce tens of millions of metric tons of carbon dioxide emissions annually from end-uses.
They are also set to generate and sustain tens of thousands of well-paying jobs across the country, fostering healthier communities.
