Biden administration announces $7 billion investment into seven regional hydrogen hubs

WASHINGTON, D.C.– The Biden administration announced on Friday that seven regional hydrogen hubs, including the Alliance for Renewable Clean Hydrogen Energy Systems (ARCHES) in California, will receive part of a $7 billion investment from the Bipartisan Infrastructure Law to boost domestic hydrogen production.

“Today we are moving from concept to reality - advancing clean, renewable hydrogen in California which is essential to meeting our climate goals," said California Governor Gavin Newsom. "We would not be here without President Biden’s leadership and his signature Bipartisan Infrastructure Law which has served as a catalyst for the nation in addressing climate change. California’s Hydrogen Hub will cut pollution, power our clean energy economy and create hundreds of thousands of good paying jobs.”

The California-based hydrogen program will use the $1.2 billion federal investment to bring together more than 300 organizations across California representing state, county, and city governments; industry; community groups; universities; labor unions; non-governmental organizations; and national labs detail California's Senior Senator Alex Padilla.

“Clean, renewable hydrogen power is essential to foster clean energy job growth and meet California’s ambitious carbon neutrality goals. Today marks a significant and decisive investment in decarbonizing our economy, with California and the Bipartisan Infrastructure Law paving the way toward a clean energy future,” said Senator Padilla. “This project will bring together leaders from across government, industry, labor unions, national labs, and more to jumpstart the market for renewable hydrogen and establish a sustainable, clean hydrogen hub by 2030. The hydrogen hub will bring tens of thousands of good-paying jobs, cleaner air, and reduced fuel costs to our state — while also focusing on environmental justice and equity for disadvantaged communities.

The ARCHES hydrogen hub network includes the Central Coast Clean Cities Coalition and The Hydrogen Delivery Company, both located in Santa Barbara.

“Creating a strong, stable, globally competitive economy means investing in the technology of tomorrow—and the new jobs we are creating in Santa Barbara are a testament to what’s possible,” said Congresswoman Katie Porter. “I’ve seen firsthand how California has led the charge in research, development, and implementation of clean energy, and I’ve been pressing the federal government to support the cutting-edge work happening in our state. Today’s landmark award will help promote innovation, reduce pollution, and create tens of thousands of good-paying jobs.”

ARCHES is expected to establish a functioning hydrogen market by 2030 as part of California's ambitious roadmap to carbon neutrality by 2045 which included a 1,700-fold increase in the use of hydrogen across multiple industry sectors.

The federal funds announced on Friday will specifically:

• Prioritize improvements to hydrogen viability in some of the most challenging industries to decarbonize-including ports, power generation, and heavy-duty transportation
• Work to implement the use of hydrogen fuel usage in the aviation, maritime, and agriculture industries among others
• Aim to make hydrogen in California cheaper than diesel and other traditional fuel sources by 2030
• Create a national model for workforce development
• Cut up to 2 million metric tons of carbon emissions every year-equivalent to 445,000 gasoline powered cars annually
• Create an estimated 220,000 new jobs-including 130,000 construction jobs and 90,000 permanent jobs
• An expected $2.95 billion per year in economic value with an estimated 40% of benefits flowing into historically disadvantaged communities

“Today’s announcement is an extraordinary investment not just in California’s future, but for the entire country,” said Angelina Galiteva, CEO of ARCHES. “ARCHES is honored to have been chosen for such substantial funding, and we are eager to get to work to bring cutting edge projects to life up and down the state. We are grateful to President Biden and to Secretary Granholm for their dedication to a clean hydrogen future, and we look forward to rolling up our sleeves and working with our partners to advance a zero-carbon economy in a just and equitable manner that will improve the quality of life for millions of Californians.”

Collectively, the seven hydrogen hubs are projected to produce more than three million metric tons of clean hydrogen per year, nearly one-third of the 2030 national production goal while simultaneously eliminating an estimated 25 million metric tons of carbon dioxide emission from end uses each year-equivalent to over 5.5 million gasoline-powered cars relay Haris Talwar, Regional Communications Director for the Biden Administration.

A full list of the seven regional hydrogen hubs are below:

• Mid-Atlantic Hydrogen Hub (Mid-Atlantic Clean Hydrogen Hub (MACH2); Pennsylvania, Delaware, New Jersey)
• Appalachian Hydrogen Hub (Appalachian Regional Clean Hydrogen Hub (ARCH2); West Virginia, Ohio, Pennsylvania) 
• California Hydrogen Hub (Alliance for Renewable Clean Hydrogen Energy Systems (ARCHES); California)
• Gulf Coast Hydrogen Hub (HyVelocity Hydrogen Hub; Texas)
• Heartland Hydrogen Hub (Minnesota, North Dakota, South Dakota)
• Midwest Hydrogen Hub (Midwest Alliance for Clean Hydrogen (MachH2); Illinois, Indiana, Michigan)
• Pacific Northwest Hydrogen Hub (PNW H2; Washington, Oregon, Montana)