President Joe Biden and Secretary of the U.S. Department of Energy Jennifer Granholm are set to unveil seven regional “hydrogen hubs” on Friday, which will be eligible for up to $7 billion in federal funding. These hubs are a part of the Biden administration’s strategy to reduce greenhouse gas emissions and develop the hydrogen industry in the United States. The funding for the hubs comes from the Bipartisan Infrastructure Law signed by President Biden in November 2021.
Hydrogen, the simplest and most abundant element on Earth, has the potential to play a significant role in reducing carbon dioxide emissions. While hydrogen is currently used in industrial processes and fertilizer production, its use as a fuel source for long-haul trucking, maritime cargo shipping, and airplane travel could significantly decrease CO2 emissions in these sectors. Additionally, hydrogen is seen as a crucial energy storage solution to balance the intermittency of renewable energy sources like wind and solar.
The seven hydrogen hubs will be spread across 16 states and will focus on developing the domestic hydrogen economy in specific geographic regions. These hubs are not single facilities but a collection of linked assets that will work together. It is estimated that the $7 billion in federal funding will attract $43 billion in private sector investment.
The selectees for the hydrogen hubs include:
1. Appalachian Hydrogen Hub: Located in West Virginia, Southeast Ohio, and southwest Pennsylvania, this hub will utilize the region’s natural gas resources to provide hydrogen for industrial applications across the country.
2. California Hydrogen Hub: Spanning from Southern California to Northern California, this hub will focus on the decarbonization of the shipping industry and heavy-duty trucking, utilizing the ports of Los Angeles, Long Beach, and Oakland.
3. Gulf State Hydrogen Hub: Centered in Houston, Texas, this hub will cover most of the Gulf Coast and southeast Texas, taking advantage of the abundant energy resources in the state.
4. Heartland Hydrogen Hub: Hosted in Minnesota, this hub will leverage the region’s inexpensive and abundant wind resources to produce clean hydrogen. The hydrogen will be used for agricultural purposes, including fertilizer production.
5. Mid-Atlantic Hydrogen Hub: Spread across parts of Pennsylvania, Delaware, and New Jersey, this hub will utilize repurposed infrastructure along the Delaware River.
6. Midwest Hydrogen Hub: Located in Illinois, northwestern Indiana, and southwestern Michigan, this hub will produce hydrogen from various sources, including nuclear power. Its strategic transportation position makes it appealing for the United States.
7. Pacific Northwest Hydrogen Hub: Covering eastern Washington, northeastern Oregon, and parts of Montana, this hub will produce hydrogen for fertilizer production and is expected to connect with the California Hydrogen Hub.
To ensure minimal emissions during hydrogen production, the hubs using natural gas will employ carbon capture technology. Hubs relying on renewable energy will utilize both new and existing clean energy sources in their regions.
The economic viability of these hubs will also benefit from the hydrogen tax credit included in the Inflation Reduction Act. The guidelines for this tax credit are expected to be released by the end of the year.
The announcement of these hydrogen hubs signifies a significant step towards a cleaner and more sustainable energy future in the United States. The funding and public-private investments will drive innovation and job creation while addressing greenhouse gas emissions in critical industries. President Biden’s commitment to developing the clean economy and reducing carbon emissions is being showcased through these hydrogen hubs, which have the potential to transform the energy landscape in the coming years.