US Announces $7 Billion Funding for Clean Hydrogen Hubs

The seven regional hubs will produce three million metric tons of hydrogen annually


The U.S. Department of Energy (DOE) has announced an investment of $7 billion in the creation of seven regional clean hydrogen hubs (H2Hubs) to accelerate the deployment of low-cost, clean hydrogen.

The seven H2Hubs will collectively produce three million metric tons of hydrogen annually and are expected to contribute significantly to the 2030 U.S. production target and reduce emissions from carbon-intensive industries.

The investment is part of the broader effort to stimulate American manufacturing and job creation, made possible by the Bipartisan Infrastructure Law.

The government said the seven H2Hubs will serve as a national network, connecting clean hydrogen producers, consumers, and necessary infrastructure.

The benefits are extensive, as they are expected to reduce 25 million metric tons of carbon dioxide emissions each year, equivalent to the annual emissions of 5.5 million gasoline-powered cars.

The funds allocated by the government will be matched by recipients, leveraging a total of nearly $50 billion.

The selected projects are distributed across the country, each harnessing regional strengths and resources:

Appalachian Hydrogen Hub: Located in West Virginia, Ohio, and Pennsylvania, it utilizes low-cost natural gas to produce clean hydrogen and store associated carbon emissions. This initiative has the potential to drive down hydrogen distribution and storage costs.

California Hydrogen Hub: This hub will produce hydrogen exclusively from renewable energy and biomass, addressing emissions from public transportation and heavy-duty trucking.

Gulf Coast Hydrogen Hub: Centered in Texas, it plans to use natural gas with carbon capture and renewables-powered electrolysis for large-scale hydrogen production.

Heartland Hydrogen Hub: Covering Minnesota, North Dakota, and South Dakota, this hub will utilize regional energy resources to decarbonize the agricultural sector and promote clean hydrogen use.

Mid-Atlantic Hydrogen Hub: In Pennsylvania, Delaware, and New Jersey, this hub will repurpose oil infrastructure and develop renewable hydrogen production facilities.

Midwest Hydrogen Hub: Located in Illinois, Indiana, and Michigan, it will enable decarbonization in various industries, including steel production and transportation.

Pacific Northwest Hydrogen Hub: Covering Washington, Oregon, and Montana, this hub will produce clean hydrogen via electrolysis, reducing production costs.

The $7 billion investment will be matched by over $40 billion from the selected projects, facilitating private sector involvement and driving the nation toward long-term decarbonization objectives, DOE said.

The H2Hubs will also aim to prioritize community benefits. Each hub is required to develop a comprehensive Community Benefits Plan, ensuring that the clean energy transition directly benefits disadvantaged communities.

To ensure the long-term success of the clean hydrogen economy and support the development of H2Hubs, the DOE has issued a request for proposal to secure private sector investment.

This demand-side initiative will provide market certainty to both producers and end users in the early years of clean hydrogen production, further accelerating private investment.

According to the National Clean Hydrogen Strategy and Roadmap released by the DOE, the demand for clean hydrogen is set to grow by 10 million metric tons (MMT) annually by the end of the decade in the United States, while it will rise to 20 MMT and 50 MMT by 2040 and 2050, respectively.

Earlier this year, the U.S. announced a grant of $750 million for research, development, and demonstration efforts to reduce the cost of clean hydrogen significantly.