In an effort to achieve the Hydrogen Shot goal of producing 1kg of H2 for $1 by 2031 and stimulate the hydrogen economy, the Department of Energy has launched the Hydrogen Hub program. The concept is to create an infrastructure that encourages both hydrogen supply and demand in regional networks across the United States.
The federal government, through the Infrastructure Investment and Jobs Act, more commonly known as the Bipartisan Infrastructure Law, is investing $8 billion to make this vision a reality (1). The government is counting on the private sector to invest an additional $40 billion to share in the effort.
The greatest portion of the federal funding, $7 billion, is aimed at creating the clean hydrogen hub network to decarbonize heavy industry and heavy-duty transportation. The remaining $1 billion is to stimulate demand by offtakers. Federal funding has been authorized until the funds have been expended.
There was much enthusiasm during the initial H2Hub application process. The DOE received 79 concept papers for the Regional Clean Hydrogen Hubs program. After a rigorous merit review process, seven hydrogen hubs were selected. These seven hubs are:
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 H2Hub; Texas)
Heartland Hydrogen Hub (Minnesota, North Dakota, South Dakota)
Mid-Atlantic Hydrogen Hub (Mid-Atlantic Clean Hydrogen Hub (MACH2); Pennsylvania, Delaware, New Jersey)
Midwest Hydrogen Hub (Midwest Alliance for Clean Hydrogen (MachH2); Illinois, Indiana, Michigan)
Pacific Northwest Hydrogen Hub (PNW H2; Washington, Oregon, Montana)
Figure 1 - Location of Hydrogen Hubs by State (International Energy Administration)
These hubs will reduce CO2 emissions from hard to abate sectors like heavy duty trucking, steel, glass and cement production, refining, and sustainable aviation fuel. Some of the hubs will produce carbon free hydrogen from renewable energy resources (green hydrogen) and nuclear energy (pink hydrogen). Others will produce low carbon hydrogen from natural gas (blue hydrogen). The method of production will depend on the energy resources (wind, solar, petro chemical, nuclear, biomass) available to the hub.
In addition to the production of carbon free and low carbon hydrogen, jobs will be created. 334,280 based on estimates from the application process.
Table 1: Direct Jobs Created by the H2Hubs (2)
Three of the seven hubs listed below have been awarded initial funding to begin phase 1, planning.
Appalachian Hydrogen Hub (Appalachian Regional Clean Hydrogen Hub (ARCH2)
California Hydrogen Hub (Alliance for Renewable Clean Hydrogen Energy Systems (ARCHES)
Pacific Northwest Hydrogen Hub (PNW H2)
Roughly $1 billion will be allocated to each of the three hubs over eight to twelve years. The allocation will take place in four phases. The DOE’s Office of Clean Demonstration (OCD) funding allocation for phase 1, the total project cost for phase 1, and the total OCD cost share for all four phases are shown in Table 2.
Table 2: Allocation for Phase 1 and Total Allocation for all Four Phases (3,4,5)
Each of the four phases is expected to last 1 to 3 years. DOE will review and evaluate deliverables at the end of each phase and make a go/no-go decision to determine if funding will continue.
The phases are broken down as follows:
Phase 1 will encompass initial planning and analysis activities to ensure that the overall H2Hub concept is technologically and financially viable, with input from relevant local stakeholders. Duration: 12 to 18 months.
Phase 2 will finalize engineering designs and business development, site access, labor agreements, permitting, offtake agreements, and community engagement activities. Duration: two to three years.
Phase 3 will focus on implementation necessary to begin installation, integration, and construction activities. Duration: two to three years.
Phase 4 will ramp-up the H2Hub to full operations including data collection to analyze the H2Hub’s operations, performance, and financial viability. Duration: two to four years.
The DOE will monitor the progress and performance of each hub. We will monitor progress and post updates on hydrogeneconomy.org. Subscribe to the H2 Liftoff podcast for more in-depth interviews with individuals knowledgeable about the hubs and the broader hydrogen economy issues.
These are exciting and essential times for the hydrogen industry. The moon shot inspired us to reach for the stars. Will the hydrogen shot and the hydrogen hubs inspire us to reach for the most abundant element on Earth to fuel our future?
Tim La Valle
Footnotes:
1. BUILDING A BETTER AMERICA | GUIDEBOOK MAY 2022 p. 156
4. https://www.energy.gov/sites/default/files/2024-08/H2Hubs%20Arches%20Booklet_8.30.24.pdf
5. https://www.energy.gov/sites/default/files/2024-08/H2Hubs%20PNW%20Booklet_Factsheet_8.30.24.pdf