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Regional Hydrogen Hubs

Last Friday, October 13, 2023, President Biden announced seven regional hydrogen hubs that were selected to receive $7 billion in Bipartisan Infrastructure Law funding to accelerate the domestic market for hydrogen. The seven selected regional hydrogen hubs will catalyze more than $40 billion in private investment and create jobs, bringing the total public and private investment in hydrogen hubs to nearly $50 billion. Roughly two-thirds of total project investment are associated with green (electrolysis based) production, within the hubs.  Collectively, the hubs aim to produce more than three million metric tons of hydrogen per year, thereby achieving nearly one third of the 2030 U.S. hydrogen production goal. Together, the seven Hydrogen Hubs will eliminate 25 million metric tons of carbon dioxide emissions from end uses each year—an amount roughly equivalent to combined annual emissions of over 5.5 million gasoline-powered cars. The nearly $50 billion investment is one of the largest investments in clean manufacturing and jobs in history.

Per the White House, the hubs selected for negotiation include:

  • 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. (Amount: up to $750 million)
  • 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 and safely store the associated carbon emissions. The strategic location of this Hydrogen Hub 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.  (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. (Amount: up to $1.2 billion)
  • Gulf Coast Hydrogen Hub (HyVelocity Hydrogen Hub; 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 through 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. (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. (Amount: up to $925 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 Hydrogen Hub plans to produce hydrogen by leveraging diverse and abundant energy sources, including renewable energy, natural gas, and low-cost nuclear energy. (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 from renewable sources. It’s 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. (Amount: up to $1 billion)
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