The Department of Energy is investing around USD 7 billion for the development of seven regional clean Hydrogen Hubs (H2Hubs). The seven hydrogen hubs are estimated to produce three million metric tons of hydrogen annually. 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. 

The project is expected to reduce 25 million metric tons of CO2 emissions annually, which is equivalent to the annual emissions of 5.5 million gasoline-powered cars. “ With the historic investment, the Biden-Harris Administration is laying the foundation for a new, American-led industry that will propel the global clean energy transition,” said US Secretary of Energy Jennifer M. Granholm. The projects are spread throughout the country harnessing regional strengths and resources.

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About Appalachian Hydrogen Hub

Appalachian Regional Clean Hydrogen Hub (ARCH2) is located in West Virginia, Ohio, and Pennsylvania. The hub will make use of the region’s ample access to low-cost natural gas to produce low-cost clean energy and permanently limit carbon emissions. The Appalachian Hydrogen Hub will create more than 21,000 direct jobs which consists of 18,000 in construction and 3,000 permanent jobs. The total estimated project cost is around USD 925 million.

About California Hydrogen Hub

The California Hydrogen Hub will produce hydrogen from renewable energy and biomass. This will address emissions from public transportation and heavy-duty trucking. This H2Hub will be committed to requiring Project Labor Agreements for all projects connected to the hub. In addition, this project will create around 220,000 direct jobs 130,000 construction jobs, and 90,000 permanent jobs. The total estimated cost is around USD 1.2 billion.

About Gulf Coast Hydrogen Hub 

The Gulf Coast Hydrogen Hub will be centered in the Houston region, the traditional energy capital in the United States. It will help kickstart a clean hydrogen economy with its plan for large-scale production using both natural gas and renewable energy. The Gulf Coast's abundance of renewable energy and gas supply will reduce the cost of production. The project is expected to generate 45,000 direct jobs, 35000 in construction, and 10,000 permanent jobs. In addition, the project cost is around USD 1.2 billion. 

About Heartland Hydrogen Hub

The Heartland Hydrogen Hub is located in Minnesota, North Dakota, and South Dakota. The Heartland hydrogen hub will utilize regional energy resources to decarbonize the agricultural sector and promote clean hydrogen use. The Heartland Hydrogen Hub is expected to create 3,880 direct jobs 3067 in construction and 703 permanent jobs. The total project is around USD 925 million.

About Mid-Atlantic Hydrogen Hub

Mid-Atlantic Hydrogen Hub is located in Pennsylvania, Delaware, and New Jersey. The H2Hub is planning to develop renewable energy production facilities from renewable and nuclear electricity using both established and innovative electrolyzer technologies, it will further help in cost reduction. The mid-Atlantic project is expected to create 20,800 direct jobs, 14,000 construction jobs, and 6400 permanent jobs. The expected project cost is around USD 750 million.

About Midwest Hydrogen Hub

Midwest Alliance for Clean Energy (MachH2) is located in Indiana, Michigan. Since it's located in a key industrial and transportation corridor, the H2Hub  will enable decarbonization through strategic hydrogen uses including glass production, power generation refining heavy-duty transportation, and sustainable aviation fuel. The H2Hub will leverage renewable energy, natural gas, and low-cost nuclear energy. The hub is expected to create 13,600 direct jobs which consists of 12,100 construction jobs and 1,500  permanent jobs. The total project cost is estimated at around USD 1 billion.

Pacific Northwest Hydrogen Hub

The Pacific Northwest  Hydrogen Hub is located in Washington, Oregon, and Montana. The hydrogen hub plans to use the region's extensive renewable energy resources to produce clean hydrogen exclusively via electrolysis. Apart from this, the H2Hub  is expected to create more than 10,000 direct jobs, 8050 construction jobs, and 350 permanent jobs. The estimated project cost is around USD 1 billion.

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Key Points of the initiative

• Funding Details:

  • $7 billion in federal funding with a leverage of $50 million, including private investors.
  • Department of Energy (DOE) leads the program.

• National Impact:

  • Hubs to collectively produce three million metric tons (MT) of hydrogen annually.
  • Targets align with the U.S.-wide production goal of 10 MT by 2030.

• Environmental Impact:

  • Expected reduction of up to 25 MT of CO2 emissions.
  • Focus on clean hydrogen production, storage, delivery, and end-use.

• Industry Perception:

  • Signal to investors about the U.S. government's commitment to the hydrogen industry.
  • Founder of Green Hydrogen Coalition sees it as a catalyst for private investment.

Impact

The Biden administration's announcement is a significant step forward in the development of a clean hydrogen economy. The USD 7 billion in funding will help to kickstart a national network of clean hydrogen producers, consumers, and connective infrastructure. The hubs will also produce 3 million metric tons of hydrogen per year, which will help to reduce CO2 emissions by up to 25 MT. In addition, the investment in clean hydrogen could reach USD 1.4 trillion by 2050.

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