DOE Announces $2.2 Billion Investment in Regional Clean Hydrogen Hubs
Key Ideas
  • The Department of Energy (DOE) is investing $2.2 billion in two Regional Clean Hydrogen Hubs to accelerate the deployment of low-cost, clean hydrogen.
  • These H2Hubs aim to reduce harmful emissions in energy-intensive sectors, create new economic opportunities, and support renewable power expansion.
  • The investment is projected to create and retain tens of thousands of good-paying jobs, strengthen local economies, and position the U.S. as a global leader in emerging energy industries.
  • The H2Hubs program includes community engagement and benefits commitments to ensure tangible impacts and support for local communities.
The Department of Energy (DOE) has announced a significant investment of up to $2.2 billion in award commitments for two Regional Clean Hydrogen Hubs (H2Hubs). These hubs, the Gulf Coast H2Hub and Midwest H2Hub, are part of the DOE's initiative to promote the commercial-scale deployment of low-cost, clean hydrogen with minimal carbon emissions. The funding is a crucial step in kickstarting a national network of clean hydrogen producers and consumers while supporting the entire hydrogen production process from storage to end-use. The Gulf Coast H2Hub, led by HyVelocity (HyV), aims to produce clean hydrogen from various sources like water electrolysis and natural gas with carbon capture. The hub intends to create around 45,000 direct jobs during its lifetime. On the other hand, the Midwest H2Hub, led by the Midwest Alliance for Clean Hydrogen LLC (MachH2), plans to utilize diverse energy sources to support decarbonization in industries across Illinois, Indiana, Iowa, and Michigan, with an estimated creation of approximately 12,000 direct jobs. The investment in these H2Hubs is a significant move towards building a strong domestic clean hydrogen economy, in line with President Biden and Vice President Harris’ goals of enhancing economic competitiveness, creating high-quality jobs, and reducing harmful emissions. Clean hydrogen is seen as a flexible energy carrier that can aid in reducing emissions in energy-intensive sectors and support renewable energy expansion. This investment is expected to drive private sector involvement in clean hydrogen and contribute to achieving long-term decarbonization objectives. The H2Hubs program aims to collectively produce millions of metric tons of hydrogen annually, targeting a reduction in emissions from hard-to-decarbonize industrial sectors. Additionally, the program will lead to the creation and retention of tens of thousands of well-paying jobs while supporting healthier communities. As part of the initiative, each H2Hub is required to develop comprehensive community benefits commitments to ensure the projects provide tangible benefits to local communities. The DOE will engage with communities through virtual briefings to gather input and ensure that the benefits of the program reach the local level. The Office of Clean Energy Demonstrations will oversee the projects to ensure they meet their objectives, including job creation, emission reduction, and community impacts.
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