Biden-Harris Administration Announces $7 Billion For America’s First Clean Hydrogen Hubs

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: 

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.

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