U.S. Energy Department Kicks Off $7 Billion Green Hydrogen Program

The U.S. Department of Energy (DOE) on Thursday opened applications for the $7 billion program to create regional clean hydrogen hubs (H2Hubs) across the country. The Department believes it will form a critical arm of the United States’ future clean energy economy and a central driver in helping communities across the country benefit from clean energy investments, good-paying jobs, and improved energy security. H2Hubs is part of a larger $8 billion hydrogen hub program funded through Biden’s Bipartisan Infrastructure Law.

“These H2Hubs are a once-in-a-generation opportunity to lay the foundation for the clean hydrogen future President Biden is building—one that will lift our economy, protect the planet, and improve our health,” said U.S. Energy Secretary Granholm said. “With input from America’s brightest scientists, engineers, community organizers, and entrepreneurs, this national hydrogen strategy will help us accelerate the development and deployment of technologies to realize the full potential of clean hydrogen energy for generations to come.” she added.

Hydrogen is a versatile fuel and touted as critical for energy transition, especially regarding transportation and industrial sectors. It can be produced from clean, diverse, and domestic energy resources, including wind, solar, and nuclear energy, or by using methane while capturing resulting carbon to reduce emissions.

The H2Hubs is set to be one of the largest investments in DOE history. The Department said in statement that it will be “a critical component of the Administration’s commitment to invest in America’s workforce, jumpstart local economic growth, and create good-paying, union jobs as we build a clean energy economy, improve energy security, and tackle climate change.”

For this initial funding opportunity launch, DOE aims to select six to ten hubs for a combined total of up to $7 billion in federal funding. Concept papers are due by November 7, 2022, and full applications are due by April 7, 2023. Additional funding opportunities may follow to accelerate and expand the network of clean hydrogen projects.

The DOE also released a draft of the “National Clean Hydrogen Strategy and Roadmap” as part of its commitment to ramp up the domestic deployment of clean hydrogen. The Roadmap provides a comprehensive overview of the potential for hydrogen production, transport, storage, and use in the United States and outlines how clean hydrogen can contribute to national decarbonization and economic development goals. A final version of the strategy and roadmap will be released in the coming months and updated at least every three years.

This funding from the Bipartisan Infrastructure Law is complemented by new incentives in Biden’s Inflation Reduction Act for clean hydrogen produced with prevailing wages and apprenticeship requirements.

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