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Released October 19, 2023 | SUGAR LAND
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Written by John Egan for Industrial Info Resources (Sugar Land, Texas)--Seven hydrogen hub projects were selected October 13 by the Department of Energy (DOE) (Washington, D.C.) to receive a total of $7 billion in federal funding to advance hydrogen's role in a decarbonizing economy. The $7 billion requires matching funds from the recipients, who were selected in a competition that began with 80 projects but was winnowed down to 20 projects. The $7 billion in funding will not be distributed equally to the seven projects, the DOE said in a statement October 13 announcing the winners, adding it was not a guarantee that funding would be awarded.
Ultimately, the DOE said in a statement, the $7 billion in federal funding was expected to draw $40 billion or more in funding from hub members and other organizations. Tens of thousands of direct jobs were expected to be created at the seven hydrogen hubs as well as supplier organizations. All told, this amounted to the largest government support for any industry in American history, the DOE said.
The seven "H2Hubs" are expected to jumpstart a national network of clean hydrogen producers, consumers and connective infrastructure while supporting the production, storage, delivery and end-use of clean hydrogen.
The hubs are expected to collectively produce 3 million metric tons of hydrogen annually, reaching nearly one-third of the 2030 U.S. production target and lowering emissions from hard-to-decarbonize industrial sectors that represent 30% of total U.S. carbon emissions. Together, they will also reduce 25 million metric tons of carbon dioxide (CO2) emissions from end-uses each year -- an amount roughly equivalent to combined annual emissions of 5.5 million gasoline-powered cars--and create and retain thousands of good-paying jobs across the country while supporting healthier communities.
"Unlocking the full potential of hydrogen -- a versatile fuel that can be made from almost any energy resource in virtually every part of the country -- is crucial to achieving President Biden's goal of American industry powered by American clean energy, ensuring less volatility and more affordable energy options for American families and businesses," said Secretary of Energy Jennifer M. Granholm. "With this historic investment, the Biden-Harris Administration is laying the foundation for a new, American-led industry that will propel the global clean energy transition while creating high quality jobs and delivering healthier communities in every pocket of the nation."
The announcement of winning projects does not automatically mean they will receive funding. The DOE will begin negotiating the terms of the grants with these seven project teams. The project names, the size of their grants, and the number of jobs they were expected to create are summarized below.
Appalachian Regional Clean Hydrogen Hub (ARCH2): This project includes the states of West Virginia, Ohio, Kentucky, Pennsylvania, where natural gas from the Marcellus and Utica shales is plentiful. It will produce hydrogen from natural gas but will also use carbon capture and sequestration (CCS) technology to capture and permanently store carbon emissions. The team will receive up to $925 million in funding and is expected to create more than 21,000 direct jobs in hard-hit coal communities--18,000 jobs will be created to construct the facility and 3,000 permanent jobs once the facility begins operating. Battelle (Columbus, Ohio) is the prime contractor. Subscribers to Industrial Info's Global Market Intelligence (GMI) Chemical Processing Project Database can click here for a detailed list of related project reports.
California Hydrogen Hub: Under the leadership of the project's prime contractor, the Alliance for Renewable Clean Hydrogen Energy Systems LLC (ARCHES) (Long Beach, California), this hub will build on California's leadership in clean energy technology to produce hydrogen exclusively from renewable energy and biomass. Funded at up to $1.2 billion, this project will serve as a blueprint for decarbonizing public transportation, heavy duty trucking and port operations, all key emissions drivers in the state, sources of air pollution, and among the hardest sectors to decarbonize. As many as 220,000 direct jobs are expected to be created: about 130,000 construction jobs and 90,000 permanent jobs. This project is expected to expand economic opportunities for economically challenged communities. Subscribers can click here for a list of related project reports.
Gulf Coast Hydrogen Hub: Led by prime contractor HyVelocity Incorporated (Houston, Texas), this Gulf Coast project will be centered in Houston, which, with ExxonMobil's commitment to creating a low-emissions campus, is emerging as a center of hydrogen activity. Slated to receive up to $1.2 billion in DOE funding, this project will use both Texas produced natural gas, equipped with CCS, and renewable energy-powered electrolysis. The project is expected to create about 45,000 direct jobs, about three-quarters of which will be in construction and the remaining one-quarter in permanent staffing of the facilities to be constructed. Subscribers can click here for a list of related project reports.
Heartland Hydrogen Hub: Scheduled to draw on the resources of Minnesota, North Dakota and South Dakota, this project will focus on decarbonizing the agriculture sector's production of fertilizer, most of which currently is produced using natural gas. This project, which is in line to receive up to $925 million in DOE funding, also will work to advance the use of hydrogen in electric power generation for use in cold climate space heating. This project team plan to offer equity participation to Native American tribes, local farms and farming cooperatives. This hub is expected to create over 3,880 direct jobs, about 3,000 of which will be for construction and about 700 permanent jobs. The project's prime contractor is the University of North Dakota's Energy & Environmental Research Center (EERC) (Grand Forks, North Dakota). Click here for a related project report.
Mid-Atlantic Hydrogen Hub: Dubbed MACH2, this project will draw on resources from Pennsylvania, Delaware and New Jersey. The DOE grant is expected to be up to $750 million, which is anticipated to create about 20,800 jobs, about 70% of which will be in construction. The remaining jobs to be created number about 6,400. This project aims to create repurpose an existing oil infrastructure and create hydrogen using nuclear power, renewable energy, and innovative electrolyzer technology that project members expect will lower the cost to produce hydrogen. Mid-Atlantic Clean Hydrogen Hub Incorporated (Dover, Delaware) is the prime contractor for this hub.
Midwest Hydrogen Hub: This project team is being led by the Midwest Alliance for Clean Hydrogen (MachH2) (Chicago, Illinois). It involves participants from Illinois, Indiana and Michigan. It's location, in a critical industrial and transportation corridor, will advance decarbonization through increased hydrogen use in steel and glass production, power generation, refining, heavy-duty transportation, and the production of sustainable aviation fuel. This project plans to produce hydrogen from a diverse set of sources, including renewables, natural gas and nuclear energy. The award is up to $1 billion. The hub is expected to create about 13,600 direct jobs: --12,100 in construction and 1,500 permanent jobs. Click here for the related project reports.
Pacific Northwest Hydrogen Hub: Drawing on resources from Washington State, Oregon and Montana, this hub, named PNW H2, will use the region's abundant renewable electric resources, such as hydropower, solar and wind, to produce clean hydrogen exclusively via electrolysis. This project shares the strategic goal of other selected project: to lower the cost of producing hydrogen. Scheduled to receive up to $1 billion in DOE grant funding, also seeks to drive down electrolyzer costs. This hydrogen hub is expected to create about 8,000 direct construction jobs and about 350 direct permanent jobs. The project's prime contractor is Pacific Northwest Hydrogen Association (Olympia, Washington). Subscribers can click here for a list of related project reports.
In its October 13 statement, the DOE said funding these hydrogen hubs is part of President Joe Biden's "Investing in America" agenda, which is itself a key pillar of "Bidenomics."
The energy agency's statement added: "DOE's historic $7 billion of federal investment in clean hydrogen will be met with the H2Hubs selectees' cost share of more than $40 billion. Together with tax incentives in the President's historic Inflation Reduction Act and ongoing research and development efforts across the Federal government, today's announcement will help drive private sector investment in clean hydrogen, setting the nation on a course to hit critical long-term decarbonization objectives."
The selection of these seven Hydrogen Hub consortia was part of the president's commitments to invest in the U.S. workforce, support high-quality U.S. jobs, advance environmental and energy justice, and strengthen tribal energy sovereignty, DOE said. Each grant recipient will be required to develop and ultimately implement a comprehensive community benefits plan, which will be informed by early and meaningful community and labor engagements in each region.
To further ensure that the benefits of the clean energy transition flow directly to impacted communities, a contrast from the decades of underinvestment and environmental degradation resulting from the development of traditional energy infrastructure projects, Biden's "Justice40 Initiative, which includes these hydrogen hub grants, aims to ensure that 40 percent of the overall benefits of certain Federal investments benefit what it called "disadvantaged communities that are marginalized by underinvestment and overburdened by pollution."
Subscribers can click here for all projects mentioned in this article and click here for the related plant profiles.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
Ultimately, the DOE said in a statement, the $7 billion in federal funding was expected to draw $40 billion or more in funding from hub members and other organizations. Tens of thousands of direct jobs were expected to be created at the seven hydrogen hubs as well as supplier organizations. All told, this amounted to the largest government support for any industry in American history, the DOE said.
The seven "H2Hubs" are expected to jumpstart a national network of clean hydrogen producers, consumers and connective infrastructure while supporting the production, storage, delivery and end-use of clean hydrogen.
The hubs are expected to collectively produce 3 million metric tons of hydrogen annually, reaching nearly one-third of the 2030 U.S. production target and lowering emissions from hard-to-decarbonize industrial sectors that represent 30% of total U.S. carbon emissions. Together, they will also reduce 25 million metric tons of carbon dioxide (CO2) emissions from end-uses each year -- an amount roughly equivalent to combined annual emissions of 5.5 million gasoline-powered cars--and create and retain thousands of good-paying jobs across the country while supporting healthier communities.
"Unlocking the full potential of hydrogen -- a versatile fuel that can be made from almost any energy resource in virtually every part of the country -- is crucial to achieving President Biden's goal of American industry powered by American clean energy, ensuring less volatility and more affordable energy options for American families and businesses," said Secretary of Energy Jennifer M. Granholm. "With this historic investment, the Biden-Harris Administration is laying the foundation for a new, American-led industry that will propel the global clean energy transition while creating high quality jobs and delivering healthier communities in every pocket of the nation."
The announcement of winning projects does not automatically mean they will receive funding. The DOE will begin negotiating the terms of the grants with these seven project teams. The project names, the size of their grants, and the number of jobs they were expected to create are summarized below.
Appalachian Regional Clean Hydrogen Hub (ARCH2): This project includes the states of West Virginia, Ohio, Kentucky, Pennsylvania, where natural gas from the Marcellus and Utica shales is plentiful. It will produce hydrogen from natural gas but will also use carbon capture and sequestration (CCS) technology to capture and permanently store carbon emissions. The team will receive up to $925 million in funding and is expected to create more than 21,000 direct jobs in hard-hit coal communities--18,000 jobs will be created to construct the facility and 3,000 permanent jobs once the facility begins operating. Battelle (Columbus, Ohio) is the prime contractor. Subscribers to Industrial Info's Global Market Intelligence (GMI) Chemical Processing Project Database can click here for a detailed list of related project reports.
California Hydrogen Hub: Under the leadership of the project's prime contractor, the Alliance for Renewable Clean Hydrogen Energy Systems LLC (ARCHES) (Long Beach, California), this hub will build on California's leadership in clean energy technology to produce hydrogen exclusively from renewable energy and biomass. Funded at up to $1.2 billion, this project will serve as a blueprint for decarbonizing public transportation, heavy duty trucking and port operations, all key emissions drivers in the state, sources of air pollution, and among the hardest sectors to decarbonize. As many as 220,000 direct jobs are expected to be created: about 130,000 construction jobs and 90,000 permanent jobs. This project is expected to expand economic opportunities for economically challenged communities. Subscribers can click here for a list of related project reports.
Gulf Coast Hydrogen Hub: Led by prime contractor HyVelocity Incorporated (Houston, Texas), this Gulf Coast project will be centered in Houston, which, with ExxonMobil's commitment to creating a low-emissions campus, is emerging as a center of hydrogen activity. Slated to receive up to $1.2 billion in DOE funding, this project will use both Texas produced natural gas, equipped with CCS, and renewable energy-powered electrolysis. The project is expected to create about 45,000 direct jobs, about three-quarters of which will be in construction and the remaining one-quarter in permanent staffing of the facilities to be constructed. Subscribers can click here for a list of related project reports.
Heartland Hydrogen Hub: Scheduled to draw on the resources of Minnesota, North Dakota and South Dakota, this project will focus on decarbonizing the agriculture sector's production of fertilizer, most of which currently is produced using natural gas. This project, which is in line to receive up to $925 million in DOE funding, also will work to advance the use of hydrogen in electric power generation for use in cold climate space heating. This project team plan to offer equity participation to Native American tribes, local farms and farming cooperatives. This hub is expected to create over 3,880 direct jobs, about 3,000 of which will be for construction and about 700 permanent jobs. The project's prime contractor is the University of North Dakota's Energy & Environmental Research Center (EERC) (Grand Forks, North Dakota). Click here for a related project report.
Mid-Atlantic Hydrogen Hub: Dubbed MACH2, this project will draw on resources from Pennsylvania, Delaware and New Jersey. The DOE grant is expected to be up to $750 million, which is anticipated to create about 20,800 jobs, about 70% of which will be in construction. The remaining jobs to be created number about 6,400. This project aims to create repurpose an existing oil infrastructure and create hydrogen using nuclear power, renewable energy, and innovative electrolyzer technology that project members expect will lower the cost to produce hydrogen. Mid-Atlantic Clean Hydrogen Hub Incorporated (Dover, Delaware) is the prime contractor for this hub.
Midwest Hydrogen Hub: This project team is being led by the Midwest Alliance for Clean Hydrogen (MachH2) (Chicago, Illinois). It involves participants from Illinois, Indiana and Michigan. It's location, in a critical industrial and transportation corridor, will advance decarbonization through increased hydrogen use in steel and glass production, power generation, refining, heavy-duty transportation, and the production of sustainable aviation fuel. This project plans to produce hydrogen from a diverse set of sources, including renewables, natural gas and nuclear energy. The award is up to $1 billion. The hub is expected to create about 13,600 direct jobs: --12,100 in construction and 1,500 permanent jobs. Click here for the related project reports.
Pacific Northwest Hydrogen Hub: Drawing on resources from Washington State, Oregon and Montana, this hub, named PNW H2, will use the region's abundant renewable electric resources, such as hydropower, solar and wind, to produce clean hydrogen exclusively via electrolysis. This project shares the strategic goal of other selected project: to lower the cost of producing hydrogen. Scheduled to receive up to $1 billion in DOE grant funding, also seeks to drive down electrolyzer costs. This hydrogen hub is expected to create about 8,000 direct construction jobs and about 350 direct permanent jobs. The project's prime contractor is Pacific Northwest Hydrogen Association (Olympia, Washington). Subscribers can click here for a list of related project reports.
In its October 13 statement, the DOE said funding these hydrogen hubs is part of President Joe Biden's "Investing in America" agenda, which is itself a key pillar of "Bidenomics."
The energy agency's statement added: "DOE's historic $7 billion of federal investment in clean hydrogen will be met with the H2Hubs selectees' cost share of more than $40 billion. Together with tax incentives in the President's historic Inflation Reduction Act and ongoing research and development efforts across the Federal government, today's announcement will help drive private sector investment in clean hydrogen, setting the nation on a course to hit critical long-term decarbonization objectives."
The selection of these seven Hydrogen Hub consortia was part of the president's commitments to invest in the U.S. workforce, support high-quality U.S. jobs, advance environmental and energy justice, and strengthen tribal energy sovereignty, DOE said. Each grant recipient will be required to develop and ultimately implement a comprehensive community benefits plan, which will be informed by early and meaningful community and labor engagements in each region.
To further ensure that the benefits of the clean energy transition flow directly to impacted communities, a contrast from the decades of underinvestment and environmental degradation resulting from the development of traditional energy infrastructure projects, Biden's "Justice40 Initiative, which includes these hydrogen hub grants, aims to ensure that 40 percent of the overall benefits of certain Federal investments benefit what it called "disadvantaged communities that are marginalized by underinvestment and overburdened by pollution."
Subscribers can click here for all projects mentioned in this article and click here for the related plant profiles.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
