Biden administration to send $7 billion for clean hydrogen hubs in 16 states

The Biden administration is directing $7 billion from the bipartisan infrastructure law to build seven regional hydrogen power hubs in 16 states, the White House announced Friday.

The projects, each of which is a cluster of assets that produce and process hydrogen fuel as an alternative to fossil fuels, will benefit the climate, the economy and U.S. energy security, administration officials told reporters Thursday. Officials previewed the announcement on the condition they not be named.

“Advancing clean hydrogen is essential to achieving the president’s vision of a strong clean energy economy that strengthens energy security, bolsters domestic manufacturing, creates healthier communities, and delivers new jobs and economic opportunities across the nation,” a news release from the White House said.

Congress approved the funding as part of the $1.2 trillion infrastructure law early in President Joe Biden’s term in 2021.

The projects will have assets in Ohio, Pennsylvania, West Virginia, New Jersey, Minnesota, South Dakota, Indiana, Michigan, Oregon, Washington, Montana, California, Delaware, Texas, North Dakota and Illinois. A hub based in Houston could “perhaps” involve Louisiana, an administration official said.

Hydrogen fuel is an important part of the administration’s goal to reach net zero emissions by 2050, the White House said.

Clean hydrogen is especially important for the most difficult sectors to decarbonize, including heavy-duty transportation and chemical, steel, and cement manufacturing, according to the release.

The hubs are expected to reduce carbon emissions by 25 million metric tons each year, the equivalent of 5.5 million gas-powered cars, the White House said. The projects will contribute about one-third of the administration’s clean hydrogen goal.

The administration projects the seven hubs will create tens of thousands of jobs and would prompt more than $40 billion in private investment, an administration official said Thursday.

Biden and Energy Secretary Jennifer Granholm are scheduled to make an appearance in Philadelphia on Friday to announce a hub based there.

The projects are:

• Appalachian Regional Clean Hydrogen Hub in Ohio, Pennsylvania and West Virginia, which will power the region’s manufacturing sector, according to an administration official. The project can take advantage of bountiful natural gas in the area, while permanently and safely storing the resulting carbon emissions, the release said.

• Alliance for Renewable Clean Hydrogen Energy Systems in California, which at $1.2 billion will be the largest single hub in terms of total money.

• HyVelocity Hydrogen HubBased in Houston, “perhaps” expanding into Louisiana, which will be the largest in terms of the amount of “green hydrogen,” the cleanest form of hydrogen fuel, produced.

• Heartland Hydrogen Hub based in Minnesota with “significant” assets in North Dakota and South Dakota. That hub will use wind resources in those states, according to an official, and help decarbonize the area’s agriculture sector, according to the release.

• Mid-Atlantic Clean Hydrogen Hub in Pennsylvania, New Jersey and Delaware. This hub will use repurposed oil infrastructure, the release said.

• Midwest Alliance for Clean Hydrogen in Illinois, Indiana and Southwest Michigan. The hub will produce hydrogen with nuclear power in the area. Two other sites will use nuclear power, though the Midwest site is planned to be the largest user of nuclear power, the official said. The hub will enable decarbonization of steel and glass production, power generation, refining, heavy-duty transportation, and sustainable aviation fuel, according to the release.

• Pacific NW Hydrogen Hub encompasses eastern Washington, northeast Oregon and parts of Montana. This hub will produce hydrogen exclusively from renewable energy sources, according to the news release.