(Washington / USA) – The US government has decided on the distribution of funding for hydrogen projects. Since the middle of last year, companies, regions and consortia have been able to apply to award a total of seven billion dollars.
The US Department of Energy (DOE) wants to advance the development of regional centers for clean hydrogen (“H2Hub”). The plan is to build networks for producers and consumers as well as create jobs and local infrastructure to accelerate the use of the energy source.
Investments of 40 billion dollars expected
Seven centers were selected for funding. According to the White House, these would trigger private investments worth more than $40 billion. This brings public and private investments in hydrogen centers to a total of almost $50 billion. Green hydrogen accounts for around two thirds of these funds.
The H2 hubs selected by the US government span 16 states. © Office of Clean Energy Demonstrations (OCED)
The project developers involved are committed to developing community benefit plans to ensure local priorities are at the forefront and all communities share in the benefits of the clean energy transition. Together, the hubs are expected to produce more than three million tons of clean hydrogen per year - almost a third of the US target for 2030.
The seven selected projects are spread across borders in 16 states. Around 200 companies are involved in the individual consortia, including global corporations, regional governments as well as institutes and institutions from industry and research; A number of companies are also involved in several hubs. All sectors are represented: energy suppliers, transport, vehicle construction, shipping, chemicals, infrastructure, suppliers, services and much more.
The “Mid-Atlantic Clean Hydrogen Hub” (MACH2) with the states of Pennsylvania, Delaware and New Jersey will receive $750 million. The plan is to develop systems to produce “clean” hydrogen, partly using green electricity and partly using nuclear power; By “clean” hydrogen, Americans – unlike Europeans – mean not only its production using renewable energies, but also electricity from nuclear power plants. The DOE expects to create 20.800 direct jobs – 14.400 in construction and 6.400 permanent jobs. Around 20 consortium partners are involved in the Mid-Atlantic Clean Hydrogen Hub, Inc.
The Appalachian Regional Clean Hydrogen Hub (ARCH2) includes the states of West Virginia, Ohio and Pennsylvania. The initiators want to use the region's access to inexpensive natural gas to produce hydrogen and permanently store the resulting carbon. The plan is to develop hydrogen pipelines and several hydrogen filling stations. The hydrogen center in the Appalachians is expected to offer workers in the coal regions new perspectives and create more than 21.000 jobs, including more than 18.000 in the construction phase and more than 3.000 long-term jobs. The consortium with around 160 partners from industry, utilities, science and the private sector has 925 million dollars available for this purpose. The non-profit US Batelle Institute, which deals with scientific and technical research, developments and commercial applications, acts as program manager.
The "Alliance for Renewable Clean Hydrogen Energy Systems LLC" (ARCHES) wants to produce hydrogen in California exclusively from renewable energies and biomass. At $1,2 billion, it is expected to provide a “blueprint for decarbonizing public transit, heavy-duty transportation and port operations” – the main causes of air pollution there. This would create 220.000 direct jobs – 130.000 construction jobs and 90.000 long-term jobs. The network includes around 200 companies and institutions.
The Gulf Coast Hydrogen Hub (HyVelocity Hydrogen Hub) in Texas will be located in the Houston region. There are plans for large-scale hydrogen production through natural gas with carbon capture and through electrolysis using abundant renewable energy sources. The hub is expected to create 45.000 direct jobs; 35.000 under construction and 10.000 permanent. Funding totaling $1,2 billion will also flow there. Around 170 partners are represented at HyVelocity, with HyVelocity, Inc. in charge.
The “Heartland Hydrogen Hub” (HH2H) in Minnesota, North Dakota and South Dakota is intended to contribute in particular to the decarbonization of fertilizer production in agriculture. The aim is also to reduce the regional costs for clean hydrogen and to promote its use in electricity generation and space heating. The coordinator and grant recipient is the Energy & Environmental Research Center (EERC). The funding amounts to $925 million. There are also plans to provide equity ownership opportunities to indigenous tribal communities. The DOE expects to create more than 3.880 jobs, including 3.067 in the early stages and 703 long-term jobs.
The Midwest Alliance for Clean Hydrogen (MachH2) includes the states of Illinois, Indiana and Michigan. Located in a key U.S. industrial and transportation corridor, the area is expected to enable decarbonization through hydrogen applications in steel and glass production, power generation, refining, heavy-duty transportation and sustainable aviation fuel. The plan is to produce hydrogen through the use of various energy sources, including renewable energy, natural gas and nuclear energy. The Midwest Hydrogen Hub expects to create 13.600 direct jobs, including 12.100 during construction and 1.500 on a permanent basis. Funding: one billion dollars. The consortium consists of almost 100 partners.
Located in Washington, Oregon and Montana Pacific Northwest Hydrogen Hub (PNW H2) wants to produce hydrogen exclusively from renewable sources under the leadership of the Pacific Northwest Hydrogen Association. The widespread use of electrolysers is expected to play a key role in reducing their costs, making the technology available to other manufacturers and reducing the cost of hydrogen production. The funding amount is one billion dollars. The Pacific Northwest Hydrogen Hub, made up of nearly 20 partners, has committed to investing in, among other things, joint work management and training programs for all projects valued at over $10.000 million. This center is expected to create more than 8.050 direct jobs, 350 construction jobs and XNUMX permanent jobs.
US investments in clean hydrogen
The hydrogen centers selected for funding are part of the US Infrastructure Investment and Jobs Act (also known as the Bipartisan Infrastructure Law, BIL) and an essential part of President Joseph Biden's plan to decarbonize the industrial sector. The bill provides $65 billion in clean energy investments by the Department of Energy. In addition to the seven billion dollars for the development of regional hubs, there is another billion to support innovative end applications.
Another goal is to reduce the cost of clean hydrogen by 80 percent to one dollar per kilogram within a decade. To this end, the DOE had announced additional resources to support research and development to develop networks of production, storage and transport infrastructure.
Class schedule
Blueprint of a potential hydrogen center with production and use of the energy source. © Office of Clean Energy Demonstrations (OCED)
