U.S. Department of Energy Announces $2.2 Billion Investment in Clean Hydrogen Hubs to Drive Energy Transition
Source：solarquarter
The U.S. Department of Energy (DOE) has committed up to $2.2 billion in funding for two Regional Clean Hydrogen Hubs (H2Hubs) under President Biden’s Investing in America agenda. The investment aims to accelerate the commercial-scale deployment of low-cost, clean hydrogen, a key energy source that can be produced with zero or near-zero carbon emissions.
The awardees, Gulf Coast H2Hub and Midwest H2Hub, will play a crucial role in DOE’s H2Hubs program, designed to establish a nationwide network of clean hydrogen production, storage, and delivery.
“This announcement marks a major milestone in DOE’s Hydrogen Hubs program and demonstrates our commitment to strengthening America’s energy security, boosting economic competitiveness, and addressing the climate crisis,” said U.S. Secretary of Energy Jennifer M. Granholm. The H2Hubs program was created by the Bipartisan Infrastructure Law and is central to advancing the clean hydrogen economy across the U.S., creating jobs, and reducing harmful emissions.
The Gulf Coast Hydrogen Hub, led by HyVelocity, will receive up to $1.2 billion in federal cost-sharing support. This hub plans to produce clean hydrogen through electrolysis and natural gas reforming with carbon capture, leveraging the region’s renewable energy and natural gas resources. The Gulf Coast H2Hub is expected to generate approximately 45,000 direct jobs over the project’s lifetime.
The Midwest Hydrogen Hub, led by the Midwest Alliance for Clean Hydrogen LLC (MachH2), will receive up to $1 billion in federal cost-sharing. Spanning Illinois, Indiana, Iowa, and Michigan, this hub will use renewable wind energy, natural gas, and nuclear power to decarbonize industries such as steel, glass production, and heavy-duty transportation. The Midwest H2Hub is anticipated to create about 12,000 direct jobs.
“Electricity partnerships offer industrial consumers stable prices, investment security, and risk spreading,” said Robert Zurawski, CFO for Germany at Vattenfall, underscoring the benefits of these investments.
The H2Hubs are expected to collectively produce millions of metric tons of hydrogen annually, helping the U.S. meet its 2030 hydrogen production target and significantly reduce carbon emissions from hard-to-decarbonize sectors like industrial manufacturing and heavy-duty transport. This investment is seen as one of the largest in clean manufacturing and job creation in U.S. history.
Each awarded hub is required to develop and implement community benefits plans, ensuring local communities have a voice in the projects. These plans will focus on environmental justice, job creation, and economic development, with DOE providing oversight and project management.
The announcement underscores the Biden-Harris Administration’s commitment to an equitable energy transition, creating new economic opportunities while advancing the country’s clean energy goals.