The Department of Energy (DOE) has placed one of its largest investments on the future of hydrogen fuel production with a just-announced $2.2 billion commitment for two regional clean hydrogen hubs (H2Hubs).
The two locations, Gulf Coast H2Hub in Texas and Midwest H2Hub in a vital Midwest corridor, are vital components of the DOE's overall clean hydrogen production strategy. The hydrogen push itself is the result of the Bipartisan Infrastructure Law, which includes a goal of building a strong and equitable domestic hydrogen economy.
What remains to be seen is whether these funds will be cut once the next Trump administration assumes office in January. Chris Wright, CEO of Denver-based Liberty Energy, has been nominated as the next DOE secretary.
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"The Biden-Harris Administration has followed through on its promise to kickstart a new domestic hydrogen industry that can produce fuel from almost any energy resource in virtually every part of the country and that can power heavy duty vehicles, heat homes, and fertilize crops,” said U.S. Secretary of Energy Jennifer M. Granholm. “Today’s announcement marks a major milestone in DOE’s Hydrogen Hubs program, signaling our deep commitment to strengthening America’s energy security and boosting our economic and global competitiveness while also tackling the climate crisis.”
The DOE says it's committing up to $1.2 billion and $1 billion of federal cost share for the Gulf Coast and Midwest Hydrogen Hubs, respectively. HyVelocity, a collaborative hub consisting of non-profit research organizations and energy companies, is taking the lead for the Gulf Coast hub's development.
These investments, which will be matched by recipients, are also designed to strengthen local economies in Texas, Illinois, Indiana, Iowa, and Michigan to create and maintain an estimated tens of thousands of jobs.
One of the reasons why clean hydrogen is an attractive fuel source is how it's produced, mainly by a mix of domestic energy resources. These include renewables, nuclear, and fossil resources with carbon capture.
The DOE's Office of Clean Energy Demonstrations (OCED) is charged with managing the H2Hubs program.