The US Department of Energy (DOE) has announced US$7bn to launch seven Regional Clean Hydrogen Hubs (H2Hubs) across the nation and accelerate the commercial-scale deployment of low-cost, clean hydrogen.
Funded by President Biden’s Bipartisan Infrastructure Law, the seven H2Hubs are expected to 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 H2Hubs are expected to collectively produce three million metric tonnes of hydrogen annually.
This would reach nearly a third of the 2030 US production target and lower emissions from hard-to-decarbonise industrial sectors that represent 30% of total US carbon emissions.
US Secretary of Energy Jennifer M Granholm said: “Unlocking the full potential of hydrogen-a versatile fuel that can be made from almost any energy resource in virtually every part of the country-is crucial to achieving President Biden’s goal of American industry powered by American clean energy, ensuring less volatility and more affordable energy options for American families and businesses.
“With this historic investment, the Biden-Harris Administration is laying the foundation for a new, American-led industry that will propel the global clean energy transition while creating high quality jobs and delivering healthier communities in every pocket of the nation.”
Selected projects for negotiation include hydrogen hubs in the Appalachian region (West Virginia, Ohio, Pennsylvania), California, the Gulf Coast, Heartland (Minnesota, North Dakota, South Dakota).
The other has are the Mid-Atlantic (Pennsylvania, Delaware, New Jersey) Midwest (Illinois, Indiana, Michigan), and Pacific Northwest Hydrogen Hub (Washington, Oregon, Montana).
Before funding is issued, DOE and the applicants will undergo a negotiation process, and DOE may cancel negotiations and rescind the selection for any reason during that time.
Bridget van Dorsten, senior research analyst at Wood Mackenzie, said: “This initiative also focuses on reducing the cost of clean hydrogen production to US$1 per kilogram by 2030, making it cost-competitive with conventional hydrogen within the next decade.
“This will help communities across the country benefit from clean energy investments and good-paying jobs.”