California has been selected as the first state to receive federal funding to establish regional hydrogen networks, or “hubs,” aimed at producing hydrogen as a clean energy source for vehicles, manufacturing, and electricity generation, officials announced Wednesday.
The U.S. Department of Energy has allocated an initial $30 million to California’s Hydrogen Hub to initiate its planning and design phase. Ultimately, the state is set to receive up to $1.2 billion as part of a broader initiative under the Biden administration to combat climate change.
In October, the administration selected seven regional hubs as part of a $7 billion program designed to kickstart the development and production of hydrogen fuel. This initiative aims to replace fossil fuels like coal and oil with hydrogen, a colorless and odorless gas that already powers certain vehicles and trains.
These hubs, spanning 16 states, are projected to attract over $40 billion in private investment and generate tens of thousands of high-paying jobs, many of which are expected to be union positions, according to President Biden.
The president has emphasized the importance of clean hydrogen in achieving the goal of net-zero greenhouse gas emissions in the U.S. by 2050.
Projects will be based not only in California but also in Washington, Minnesota, Texas, Pennsylvania, West Virginia, and Illinois. Except for the California and Texas hubs, all others involve multiple states, with Pennsylvania featuring projects in two distinct hubs.
Frank Wolak, president and CEO of the Fuel Cell & Hydrogen Energy Association, hailed Wednesday’s announcement as a significant milestone, highlighting the competitive process that has led to the awarding of contracts and funding for the hubs.
“This funding will support a major infrastructure initiative and invest in the future of clean energy,” he stated. “It marks the beginning of demonstrating the capabilities of these hubs. Each hub is unique, and California is focused on decarbonizing hard-to-abate sectors in transportation, among other areas.”
A hydrogen hub consists of a network of companies producing clean hydrogen, industries utilizing it—such as heavy transportation—and the necessary infrastructure, including pipelines and refueling stations.
Hydrogen can be produced in ways that generate minimal to no greenhouse gas emissions. According to the Energy Department, hydrogen, once produced, can power fuel cells, emitting only water vapor and warm air.
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