First Federal Funding for Hydrogen Hubs Awarded to California and Pacific Northwest

The Energy Department's Office of Clean Energy Demonstrations announced on July 17 the award of $30 million to the California Hydrogen Hub, “a network of clean hydrogen production sites that incorporate multiple facilities at California ports.”

The expansion of hydrogen fuel cell vehicles in heavy-duty transportation aims to not only drive improvements in air quality along high pollution interstate transportation corridors but also to facilitate greater connectivity and expansion of a clean West Coast freight network that links to the Pacific Northwest Hydrogen Hub.

“California’s hub will produce hydrogen exclusively from renewable energy [known as green hydrogen] and biomass, while other hubs will experiment with other sources,” reported Hayley Smith for the Los Angeles Times on Oct. 13, 2023, when the U.S. Department of Energy announced “$7 billion to launch seven Regional Clean Hydrogen Hubs (H2Hubs) across the nation” made possible by the passage of the Infrastructure Investment and Jobs Act (IIJA) on Nov. 5, 2021.

Pacific Northwest H2 Hub

A week after the Office of Clean Energy Demonstrations awarded the initial funds to kickstart the California hub, OCED awarded $27.5 million to the Pacific Northwest Hydrogen Hub.

OCED is working with PNWH2 to build a clean hydrogen ecosystem across Washington, Oregon, and Montana that leverages the region’s abundant renewable resources to produce all of its hydrogen exclusively via electrolysis using clean, carbon free energy, facilitating greater connectivity and expansion of a clean West Coast freight network that links to the California Hydrogen Hub.

Clean hydrogen

The Rhodium Group shed light on the distinction between clean and conventional hydrogen in a nine-page report published Sept. 9, 2021, a month after the IIJA passed the Senate and nearly two months prior to passage in the House.

As Congress considers policy support for hydrogen technologies, it is essential to understand the distinction between how we use hydrogen today and the role of hydrogen in a decarbonized US economy. Hydrogen currently plays a crucial function in our economy, primarily as an industrial feedstock. Nearly all of today’s supply is from steam methane reformation, an emissions-intensive form of hydrogen production made from natural gas.  

Russ Mitchell, who covers energy technology, including the state’s ambitious transition to electric vehicles, for the Los Angeles Times, reported on July 17 that “some environmentalists are wary of hydrogen, claiming it’s not as clean as its proponents make it out to be.”

That issue is sure to be debated as [the Alliance for Renewable Clean Hydrogen Energy Systems ] ARCHES moves forward. Depending on how the hydrogen is made, it could provide cleaner energy alternatives for hard-to-decarbonize sectors, such as steelmaking and cement production.

Additional reading: 

• AP, July 17: California first state to get federal funds for hydrogen energy hub to help replace fossil fuels
• S&P Global, July 24: Pacific Northwest Hydrogen Hub awarded $27.5 mil to begin project's first phase