Biden Unveils Ambitious Hydrogen Plan
President Joe Biden and U.S. Department of Energy Secretary Jennifer Granholm are set to announce the establishment of seven regional "hydrogen hubs" on Friday, collectively eligible for up to $7 billion in federal funding. This funding is sourced from the Bipartisan Infrastructure Law signed by President Biden in November 2021.
Hydrogen, the simplest and most abundant element on Earth, is targeted for its potential to reduce greenhouse gases in various industries such as long-haul trucking, maritime cargo shipping, and aviation. Hydrogen is produced through electrolysis powered by electricity or steam methane reforming from natural gas. The hydrogen hubs, spanning 16 states, aim to develop a domestic hydrogen economy, emphasizing minimal emissions in the production process.
The hubs, not individual facilities but interconnected assets, are strategically located in regions with strengths in developing the hydrogen industry. The design facilitates clusters of supply and demand nearby, reducing the challenges of transporting hydrogen over long distances.
The $7 billion federal funding is expected to attract around $43 billion in private-sector investment. The funding will be disbursed as the regional hubs meet specific milestones, fostering job creation, a key theme in President Biden's promotion of the clean economy.
The seven hydrogen hubs and their focus areas are as follows:
Appalachian Hydrogen Hub: Covering parts of West Virginia, Southeast Ohio, and southwest Pennsylvania, it utilizes abundant natural gas for industrial applications and is well-connected for transportation.
California Hydrogen Hub: Spanning from Southern to Northern California, it includes crucial ports like Los Angeles, Long Beach, and Oakland, emphasizing the role of hydrogen in decarbonizing shipping and heavy-duty trucking.
Gulf State Hydrogen Hub: Centered in Houston, Texas, it covers the Gulf Coast and southeast Texas, leveraging the region's energy resources for hydrogen production.
Heartland Hydrogen Hub: Hosted in Minnesota with a presence in North and South Dakota, it utilizes abundant wind resources for clean hydrogen, targeting applications in agriculture.
Mid-Atlantic Hydrogen Hub: Covering parts of Pennsylvania, Delaware, and New Jersey, it utilizes repurposed infrastructure along the Delaware River.
Midwest Hydrogen Hub: Located in Illinois, northwestern Indiana, and southwestern Michigan, it produces hydrogen from sources such as nuclear power and is strategically positioned for transportation.
Pacific Northwest Hydrogen Hub: Encompassing eastern Washington, northeastern Oregon, and parts of Montana, it produces hydrogen for fertilizer and is expected to connect with the California Hydrogen Hub.
Hydrogen hubs using natural gas will incorporate carbon capture technology, while those using renewable energy will combine new clean energy sources with existing ones in the region. The economic viability of these hubs will be supported by the hydrogen tax credit included in the Inflation Reduction Act, with guidance expected by the end of the year. The hubs are viewed as a starting point, with ongoing efforts in tax credits, infrastructure development, and community support shaping their evolution over the next 18 months.