U.S. President Biden and Energy Secretary Jennifer Granholm have announced seven regional clean hydrogen hubs that were selected to receive $7 billion in ‘Bipartisan Infrastructure Law’ funding to accelerate the domestic market for low-cost, clean hydrogen.
The seven selected regional clean hydrogen hubs are estimated to catalyze more than $40 billion in private investment and create tens of thousands of jobs, bringing the total public and private investment in hydrogen hubs to nearly $50 billion.
According to the White House statement, roughly two-thirds of total project investments are associated with green (electrolysis-based) production, within the hubs, and several of the hubs were developed in close partnerships with unions, with three requiring project labor agreements (PLAs).
In addition to job creation and creating healthier air for communities, the hydrogen-selected hubs are committed to ‘Community Benefit Plans’ to ensure local priorities are at the forefront and all communities share in the benefits of the clean energy transition, the White House said.
Collectively, the hubs aim to produce more than three million metric tons of clean hydrogen per year, thereby achieving nearly one-third of the 2030 U.S. clean hydrogen production goal, the White House claimed, adding that together, the seven hubs will eliminate 25 million metric tons of carbon dioxide emissions from end uses each year.
The hubs selected include:
To note, clean hydrogen can reduce emissions in many sectors of the economy and is said to be especially important for hard-to-decarbonize sectors and industrial processes, such as heavy-duty transportation and chemical, steel and cement manufacturing.
President Biden’s ‘Bipartisan Infrastructure Law’ includes $65 billion in clean energy investments at the Department of Energy (DOE), including $8 billion for a ‘Regional Clean Hydrogen Hubs Program’ to support the development of hubs for clean hydrogen production, delivery and end-use.
$7 billion of this program is going towards the development of the regional clean hydrogen hubs and up to $1 billion of the remaining funding will be used for demand-side support for the hubs to drive innovative end-uses of clean hydrogen.
The White House said the hubs are covered under the ‘Justice40 Initiative,’ which aims to ensure that 40% of the overall benefits of certain federal investments flow to disadvantaged communities that are marginalized by underinvestment and overburdened by pollution.
In addition to the hubs, the DOE has launched other clean hydrogen programs, including $1 billion for a ‘Clean Hydrogen Electrolysis Program: Electrolysis’ and $500 million for ‘Clean Hydrogen Manufacturing and Recycling RD&D Activities.’