DOE Commits Up to $2.2 Billion for Two Hydrogen Hubs

---

Researched by Industrial Info Resources (Sugar Land, Texas)--The U.S. Department of Energy said Wednesday it has made up to $2.2 billion in award commitments for two hydrogen hubs--one on the Gulf Coast and one in the Midwest.

The awards are part of the Biden administration's plan to kickstart a national network of clean hydrogen producers, consumers, and connective infrastructure to reduce greenhouse gas emissions. The DOE said it was committing up to $1.2 billion of federal cost share for the Gulf Coast Hydrogen Hub (HyVelocity Hub) and up to $1 billion for the Midwest Hydrogen Hub--led by the Midwest Alliance for Clean Hydrogen LLC (MachH2). The awards follow three previously awarded hydrogen hubs, located in California, the Pacific Northwest and Appalachia.

"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 Granholm.

The DOE announced last year it had picked seven hydrogen hub projects to potentially receive $7 billion in federal funding. For more on that, see October 19, 2023, article - Seven Hydrogen Hubs Selected to Receive $7 Billion in DOE Funding.

The Gulf Coast Hydrogen Hub plans to leverage the Gulf Coast region's renewable energy and natural gas supply to drive down the cost of hydrogen, the DOE said. The hub proposes to produce hydrogen from water through electrolysis and from natural gas while utilizing carbon capture and storage.

The Midwest hub plans to leverage the region's energy sources (including renewable wind energy, natural gas and nuclear energy) to support the decarbonization of industries including steel and glass production, manufacturing, power generation, refining, and heavy-duty transportation across Illinois, Indiana, Iowa and Michigan, the DOE said.

Federal funding for the Gulf Coast (HyVelocity) hub, to be located at least partly in Texas, kicks off with a first tranch of $22 million, its developers said.

"As a founding member of the HyVelocity Hub, we are proud to reach this milestone, laying the groundwork for a robust and thriving hydrogen ecosystem in the Gulf Coast," said Laura Parkan, vice president of hydrogen energy & mobility, North America, Air Liquide S.A.'s (Paris, France).

The awards were made possible by the 2021 bipartisan infrastructure law. How the clean hydrogen initiative will fare under President-elect Donald Trump is uncertain. Trump has pledged to cancel all unspent from the 2022 Inflation Reduction Act, which would impact the development of renewable energy.

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 more than 200,000 current and future projects worth $17.8 Trillion (USD).