Big Idea:

The U.S. Department of Energy (DOE) has committed $7 billion to establish seven Regional Clean Hydrogen Hubs (H2Hubs) across the country, with the goal of boosting the production and use of low-cost, clean hydrogen. We see this as being a positive catalyst that will help store electricity generated by solar and wind. It will also support a downstream hydrogen economy including a national network of clean hydrogen producers, and consumers.

Why It Matters:

Hydrogen has long been regarded as a clean energy solution rivaling the battery and EV narrative,, but the chicken-or-egg problem has hindered its adoption. Companies have been hesitant to invest in hydrogen production due to limited demand, and automakers have been cautious about producing fuel cell vehicles without a robust hydrogen supply infrastructure. The U.S. government's significant investment aims to resolve this dilemma and drive the widespread adoption of clean hydrogen in various sectors. Hydrogen is one of those low carbon solutions that requires a ton of investment in energy if it’s going to work (nuclear, hydro, wind, and solar).

Key Details:

• Funded by Bipartisan Infrastructure Law: The $7 billion investment is part of the Bipartisan Infrastructure Law, and it is expected to generate an overall investment cycle worth $47 billion. These H2Hubs are anticipated to create a national network of clean hydrogen producers and consumers.
• Seven Selected Hubs: These hubs, spanning diverse U.S. regions, encompass a range of innovative approaches to clean hydrogen production, which includes the Appalachian Hydrogen Hub, California Hydrogen Hub, Gulf Coast Hydrogen Hub, Heartland Hydrogen Hub, Mid-Atlantic Hydrogen Hub, Midwest Hydrogen Hub, and Pacific Northwest Hydrogen Hub.
• Job Creation and Economic Impact: These H2Hubs will generate thousands of jobs, with the Appalachian Hydrogen Hub alone expected to create over 21,000 direct jobs, including 18,000 in construction and 3,000 permanent positions, supporting local communities and fostering economic growth.

What's Next:

These H2Hubs are expected to collectively produce three million metric tons of hydrogen annually, a significant step toward the U.S.'s 2030 production target for clean hydrogen. They will not only boost the adoption of hydrogen in the transportation sector but also target hard-to-decarbonize industrial sectors responsible for 30% of the country's total carbon emissions. The impact could be substantial, reducing 25 million metric tons of CO2 emissions from end-uses each year.

The success of these H2Hubs will depend on their ability to provide low-cost, clean hydrogen, making it a viable and sustainable energy solution. This initiative has the potential to reshape the energy landscape in the United States and play a significant role in achieving a more sustainable future.

Sector Highlight:

Clean Energy and Hydrogen Production