As part of President Biden’s Investing in America agenda, a key pillar of Bidenomics, the U.S. Department of Energy (DOE) today announced $7 billion to launch seven Regional Clean Hydrogen Hubs (H2Hubs) across the nation and accelerate the commercial-scale deployment of low-cost, clean hydrogen—a valuable energy product that can be produced with zero or near-zero carbon emissions and is crucial to meeting the President’s climate and energy security goals.
Funded by President Biden’s Bipartisan Infrastructure Law, the seven H2Hubs will serve as the foundation for a nationwide network of clean hydrogen producers and users, facilitating the production, storage, delivery, and utilization of clean hydrogen. Together, these hubs are projected to produce around three million metric tons of hydrogen annually, representing nearly a third of the 2030 U.S. production target. This move will also significantly reduce emissions from hard-to-decarbonize industrial sectors, which account for 30 percent of total U.S. carbon emissions. Additionally, they will lead to an annual reduction of 25 million metric tons of carbon dioxide (CO2) emissions, equivalent to the combined yearly emissions of 5.5 million gasoline-powered cars. This endeavor will generate and preserve tens of thousands of well-paying jobs across the country, contributing to healthier communities.
This announcement stands as one of the most significant investments in clean manufacturing and job creation in American history. This substantial federal investment will be supplemented by contributions from recipients, resulting in an overall investment of nearly $50 billion. This will stimulate local economies, create and maintain high-quality jobs, particularly those that support worker organization and collective bargaining, and cut down on detrimental emissions that harm public health and the environment. Beyond establishing America as a global leader in emerging clean energy sectors, the H2Hubs will implement comprehensive proposals to enhance local benefits and the workforce, aligning with the President’s vision of an equitable and inclusive clean energy future.
Clean hydrogen, a versatile energy carrier derived from various domestic clean energy sources, including renewables, nuclear, and fossil fuels with carbon capture, will enable the H2Hubs to substantially reduce emissions from energy-intensive industries. These industries include chemical and industrial processes and heavy-duty transportation. Clean hydrogen can also serve as a form of long-term energy storage to support the expansion of renewable energy sources. By encouraging the development of diversified, domestic clean energy solutions across various sectors of the economy, clean hydrogen will strengthen American energy independence and further boost the American manufacturing sector, which has already created over 815,000 jobs since President Biden took office.
Selected projects for negotiation include:
- Appalachian Hydrogen Hub (Appalachian Regional Clean Hydrogen Hub (ARCH2); West Virginia, Ohio, Pennsylvania) — The Appalachian Hydrogen Hub will leverage the region’s ample access to low-cost natural gas to produce low-cost clean hydrogen and permanently store the associated carbon emissions. The strategic location of this H2Hub and the development of hydrogen pipelines, multiple hydrogen fueling stations, and permanent CO2 storage also have the potential to drive down the cost of hydrogen distribution and storage. The Appalachian Hydrogen Hub is anticipated to bring quality job opportunities to workers in coal communities and create more than 21,000 direct jobs—including more than 18,000 in construction and more than 3,000 permanent jobs, helping ensure the Appalachian community benefits from the development and operation of the Hub. (Amount: up to $925 million)
- California Hydrogen Hub (Alliance for Renewable Clean Hydrogen Energy Systems (ARCHES); California) — The California Hydrogen Hub will leverage the Golden State’s leadership in clean energy technology to produce hydrogen exclusively from renewable energy and biomass. It will provide a blueprint for decarbonizing public transportation, heavy duty trucking, and port operations—key emissions drivers in the state and sources of air pollution that are among the hardest to decarbonize. This H2Hub has committed to requiring Project Labor Agreements for all projects connected to the hub, which will expand opportunities for disadvantaged communities and create an expected 220,000 direct jobs—130,000 in construction jobs and 90,000 permanent jobs. (Amount: up to $1.2 billion)
- Gulf Coast Hydrogen Hub (HyVelocity H2Hub; Texas) — The Gulf Coast Hydrogen Hub will be centered in the Houston region, the traditional energy capital of the United States. It will help kickstart the clean hydrogen economy with its plans for large-scale hydrogen production using both natural gas with carbon capture and renewables-powered electrolysis, leveraging the Gulf Coast region’s abundant renewable energy and natural gas supply to drive down the cost of hydrogen—a crucial step to achieving market liftoff. This H2Hub is expected to create approximately 45,000 direct jobs—35,000 in construction jobs and 10,000 permanent jobs. (Amount: up to $1.2 billion)
- Heartland Hydrogen Hub (Minnesota, North Dakota, South Dakota) — The Heartland Hydrogen Hub will leverage the region’s abundant energy resources to help decarbonize the agricultural sector’s production of fertilizer, decrease the regional cost of clean hydrogen, and advance the use of clean hydrogen in electric generation and for cold climate space heating. It also plans to offer unique opportunities of equity ownership to tribal communities through an equity partnership and to local farmers and farmer co-ops through a private sector partnership that will allow local farmers to receive more competitive pricing for clean fertilizer. The Heartland Hydrogen Hub anticipates creating upwards of 3,880 direct jobs–3,067 in construction jobs and 703 permanent jobs. (Amount: up to $925 million)
- Mid-Atlantic Hydrogen Hub (Mid-Atlantic Clean Hydrogen Hub (MACH2); Pennsylvania, Delaware, New Jersey) — The Mid-Atlantic Hydrogen Hub will help unlock hydrogen-driven decarbonization in the Mid-Atlantic while repurposing historic oil infrastructure and using existing rights-of-way. It plans to develop renewable hydrogen production facilities from renewable and nuclear electricity using both established and innovative electrolyzer technologies, where it can help reduce costs and drive further technology adoption. As part of its labor and workforce commitments to the community, the Mid-Atlantic Hydrogen Hub plans to negotiate Project Labor Agreements for all projects and provide close to $14 million for regional Workforce Development Boards that will serve as partners for community college training and pre-apprenticeships. This H2Hub anticipates creating 20,800 direct jobs—14,400 in construction jobs and 6,400 permanent jobs. (Amount: up to $750 million)
- Midwest Hydrogen Hub (Midwest Alliance for Clean Hydrogen (MachH2); Illinois, Indiana, Michigan) — Located in a key U.S. industrial and transportation corridor, the Midwest Hydrogen Hub will enable decarbonization through strategic hydrogen uses including steel and glass production, power generation, refining, heavy-duty transportation, and sustainable aviation fuel. This H2Hub plans to produce hydrogen by leveraging diverse and abundant energy sources, including renewable energy, natural gas, and low-cost nuclear energy. The Midwest Hydrogen Hub anticipates creating 13,600 direct jobs—12,100 in construction jobs and 1,500 permanent jobs. (Amount: up to $1 billion)
- Pacific Northwest Hydrogen Hub (PNW H2; Washington, Oregon, Montana) — The Pacific Northwest Hydrogen Hub plans to leverage the region’s abundant renewable resources to produce clean hydrogen exclusively via electrolysis. Its anticipated widescale use of electrolyzers will play a key role in driving down electrolyzer costs, making the technology more accessible to other producers, and reducing the cost of hydrogen production. The Pacific Northwest Hydrogen Hub has committed to negotiating Project Labor Agreements for all projects over $1 million and investing in joint labor-management/state-registered apprenticeship programs. This H2Hub is expected to create more than 10,000 direct jobs—8,050 in construction jobs and 350 permanent jobs. (Amount: up to $1 billion)
Learn more about the seven H2Hubs selected for award negotiations here.
The $7 billion Federal investment from the DOE will be complemented by over $40 billion in contributions from the H2Hubs selectees. Coupled with tax incentives from the President’s Inflation Reduction Act and ongoing federal research and development initiatives, this announcement will encourage private sector investment in clean hydrogen and lay the groundwork for the nation to achieve long-term decarbonization goals.
Additionally, each H2Hub is required to develop a comprehensive Community Benefits Plan (CBP) to ensure that the clean energy transition benefits local communities. President Biden’s Justice40 Initiative aims to direct 40 percent of the benefits from federal investments, including those from the H2Hubs, toward disadvantaged communities affected by pollution and underinvestment.
The Administration is committed to building an equitable clean energy economy and will engage with communities to ensure their concerns are addressed. Furthermore, the Department of Energy is taking steps to secure market certainty for both clean hydrogen producers and end-users, facilitating private sector investments. DOE’s Office of Clean Energy Demonstrations (OCED) will oversee these projects, ensuring that they meet their goals of reducing emissions, creating high-quality jobs, and delivering benefits to local communities.
It’s important to note that selection for award negotiations does not guarantee funding, as DOE will undergo a negotiation process with applicants, with the possibility of canceling negotiations for any reason during this phase.
