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Feds fueling $8B nationwide hydrogen hub investment

October 13, 2023

Source: Fleet Owner

The federal government plans to pump $8 billion into regional green hydrogen hubs to increase domestic production of the potential carbon-free fuel, the White House announced Oct. 13. Biden will make remarks about the investment in an address in Pennsylvania on Friday afternoon. Money earmarked in the 2021 infrastructure law would support low-cost, clean hydrogen development at seven regional hubs nationwide.

According to the White House, the regional clean hydrogen hubs would “catalyze more than $40 billion in private investment and create tens of thousands of good-paying jobs.” The hubs’ goal is to collectively produce more than 3 million metric tons of hydrogen per year, which is nearly one-third of the 2023 U.S. clean hydrogen production goal. The hydrogen hubs are expected to eliminate carbon dioxide emissions equivalent to 5.5 million gasoline-powered cars, or 25 million metric tons, in a year.

“Hydrogen just went from being the fuel of the future to the fuel of today, which will drive hydrogen production and offtake at scale,” said Denise Brinley, VP of TRC, a global consulting, engineering, and construction management firm that offers environmentally focused solutions. “Hydrogen hubs will include a minimum 50% match, so the federal government’s investment is further amplified by additional private sector investment in hydrogen projects that will accelerate the overall hydrogen economy.”

The investment targets heavy-duty transportation and chemical, steel, and cement manufacturing—each a problematic industry to decarbonize. The White House noted that investing in alternative fuels in these industries can help reduce costs and create jobs for engineers, construction workers, and manufacturing workers.

In all, $8 billion has been allocated to the Regional Clean Hydrogen Hubs Program: $7 billion supporting hub development and the remaining $1 billion for “demand-side support” for the hubs to drive innovation.

“It’s worth noting that the national network of hydrogen hubs will span the footprint of transportation infrastructure in the United States– making it a highly attractive solution for the market,” Brinley said. “We are very optimistic that these awards for hydrogen hubs will be the catalyst that accelerates the hydrogen truck market.”

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