President Joe Biden and Secretary of the U.S. Department of Energy Jennifer Granholm are set to announce the establishment of seven regional “hydrogen hubs” eligible for up to $7 billion in federal funding. The funding comes from the Bipartisan Infrastructure Law signed by President Biden in November 2021. These hydrogen hubs will focus on developing and growing the hydrogen industry in the United States and reducing CO2 emissions. The hubs are spread across 16 states and will catalyze an estimated $43 billion in private sector investment.
Hydrogen, the simplest and most abundant element on Earth, can be used to reduce greenhouse gas emissions in industries like long-haul trucking, shipping, and aviation. Additionally, hydrogen is seen as a potential energy storage solution for renewable energy sources. However, its production often creates emissions. The new hydrogen hubs aim to address this challenge by focusing on producing hydrogen with minimal emissions. These hubs will not be individual facilities but collections of linked assets working together to develop the domestic hydrogen economy in the United States.
The seven hydrogen hubs are strategically located in regions with strengths in developing and growing the hydrogen industry. Each hub has its unique focus and advantages. For example, the Appalachian Hydrogen Hub will leverage the region’s natural gas resources for industrial applications, while the California Hydrogen Hub will target decarbonizing the shipping industry. The Gulf State Hydrogen Hub in Houston, Texas, will use the region’s energy abundance for hydrogen production. The federal funding will depend on the hubs meeting stage-gate milestones, and it is expected to stimulate job creation and attract additional private sector investment. The hydrogen hubs using natural gas will incorporate carbon capture technology, while those relying on renewable energy will utilize a combination of new and existing clean energy sources.
