DOE Plans to Invest $1 Billion in Hydrogen Hubs

Green hydrogen

Credit: Canva Pro

by | Jul 6, 2023

Green hydrogen

(Credit: Canva Pro)

The Department of Energy said it intends to invest up to $1 billion in an initiative to support the Regional Clean Hydrogen Hubs (H2Hubs).

These hubs will play a role in establishing a national clean hydrogen network, which is vital for reducing emissions in energy-intensive sectors such as industrial processes and heavy-duty transportation. This initiative aims to unlock private investment and accelerate the growth of clean hydrogen production, leading to job creation and economic opportunities across the nation.

The Benefits of H2Hubs

The  H2Hubs initiative addresses the needs of end users who require the flexibility to purchase hydrogen on shorter-term contracts and seek long-term availability before making significant investments. The H2Hubs program aims to strengthen sustainability and bridge the gap between supply and demand.

Later this year, the selection of six to ten H2Hubs will be announced, with a total federal funding of up to $7 billion. This investment aims to achieve a carbon-free grid in the United States by 2035 and net-zero emissions by 2050. The proposed mechanism of the investment will facilitate connections between H2Hubs and potential purchasers, ensuring durable demand and supporting the Biden Administration’s vision of a strong clean hydrogen economy, the DOE said.

Importance of Clean Hydrogen

Clean hydrogen is an adaptable and flexible energy carrier that can be produced with low or zero carbon emissions. Its widespread adoption offers significant economic benefits and has the potential to create tens of thousands of new jobs, particularly in underserved and energy communities across the U.S.

According to the DOE’s report on clean hydrogen, the hydrogen economy could add 100,000 net new direct and indirect jobs by 2030. This versatile energy resource will enhance U.S. energy independence, bolster the manufacturing sector, and contribute to the nation’s decarbonization goals.

Managed by DOE’s Office of Clean Energy Demonstrations with support from the Office of Energy Efficiency and Renewable Energy, the H2Hubs program aligns with the administration’s commitment to invest in the country’s workforce and stimulate local economic growth.

The DOE has released a notice of intent, which will seek out public input on various aspects, such as program design, potential benefits and risks, operating models, governance structures, and implementing partners. The DOE intends to engage private sector institutions in the organization, capitalization, and execution of the initiative.

The feedback received will inform the design of a demand-side support mechanism and may serve as a blueprint for future initiatives focused on other clean energy technologies.

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