US Announces $7 Billion Funding to Create Regional Clean Hydrogen Hubs

Initially, 6-10 hubs will be selected for a combined total of over $7 billion in federal funding

September 27, 2022


The U.S. Department of Energy (DOE) has announced a $7 billion funding opportunity to create regional clean hydrogen hubs (H2Hubs) across America.

The funding is part of a larger $8 billion hydrogen hub program funded through President Joe Biden’s Bipartisan Infrastructure Law.

The H2Hubs will help communities across the country benefit from clean energy investments, well-paying jobs, and improved energy security, all supporting the goal of a net-zero carbon economy by 2050.

For this initial funding opportunity launch, DOE aims to select six to ten hubs for a combined total of up to $7 billion in federal funding.

The projects to be funded include community benefits plan to support meaningful community and labor engagement; invest in America’s workforce; advance diversity, equity, inclusion, and accessibility; and extend 40% of the overall benefits of certain federal investments flow to disadvantaged communities.

U.S. Secretary of Energy Jennifer M. Granholm observed, “These H2Hubs are a once-in-a-generation opportunity to lay the foundation for the clean hydrogen future President Biden is building— one that will lift our economy, protect the planet, and improve our health. With input from America’s brightest scientists, engineers, community organizers, and entrepreneurs, this national hydrogen strategy will help us accelerate the development and deployment of technologies to realize the full potential of clean hydrogen energy for generations to come.”

Hydrogen’s flexibility makes it an important component of the strategy to achieve a carbon-free grid by 2035 and net-zero emissions by 2050. Hydrogen is a versatile fuel that can be produced from clean, diverse, and domestic energy resources, including wind, solar, and nuclear.

DOE also released a draft of the National Clean Hydrogen Strategy and Roadmap for public feedback. It provides an overview of the potential for hydrogen production, transport, storage, and use in the U.S.

Recently, sixteen countries committed $94 billion for clean energy demonstration projects globally at the first-ever Global Clean Energy Action Forum in Pittsburgh.

According to a report by the International Renewable Energy Agency (IRENA), the hydrogen trade would significantly contribute to a more diversified and resilient energy system. The report highlighted that as hydrogen becomes an internationally traded commodity, its production would witness increased investments, fulfilling the global energy demand totaling around $4 trillion by 2050.