On October 13, 2023 in Philadelphia, President Biden and Secretary of the Department of Energy (DOE) Granholm announced the seven regional hydrogen hubs (H2Hubs) selected for negotiation with DOE for $7 billion in funding. 

What You Need to Know:

• President Biden announced the selection of seven regional hydrogen hubs to spur the development of hydrogen as clean energy.
• The hydrogen hubs will receive total funding up to $7 billion.

According to the White House, "Collectively, the hubs aim to produce more than three million metric tons of clean hydrogen per year, thereby achieving nearly one-third of the 2030 U.S. clean hydrogen production goal. Together, the seven Hydrogen Hubs will eliminate 25 million metric tons of carbon dioxide emissions from end uses each year—an amount roughly equivalent to combined annual emissions of over 5.5 million gasoline-powered cars." Dozens of coalitions had sought to be selected for the program, which was established by the Bipartisan Infrastructure Law. The selected projects all involve public/private partnerships and include participation by universities. The selected hubs will now move to the next stage in the process, which involves further negotiations with the DOE. The Inflation Reduction Act also provides for tax credits, which will award up to $3 for each kilogram of hydrogen produced, with low and no-carbon production receiving the largest incentives. Guidance for that tax credit has yet to be issued by the Treasury Department, and is important for the development of the hubs. The selected hubs are as follows:

ARCH2 – Appalachian Hydrogen Hub (PA/WV/OH) - ARCH2 | Appalachian Regional Clean Hydrogen Hub (arch2hub.com) 

MACH2 – Midatlantic Clean Hydrogen Hub (PA/NJ/DE) - Mid-Atlantic Clean Hydrogen Hub (MACH2) (mach-2.com)

HHH2 – Heartland Hydrogen Hub (MN/ND/SD) – Xcel Energy, Heartland Hydrogen Hub selected for up to $925 million federal award

MachH2 -Midwest Hydrogen Hub (IL/IN/MI) – Home - Midwest Alliance for Clean Hydrogen (machh2.com)

ARCHES – California Hydrogen Hub (CA) - Arches H2 – Alliance for Renewable Clean Hydrogen Energy Systems (ARCHES)  

Hyvelocity – Gulf Coast Hydrogen Hub (TX) - Home | HyVelocity Hub

PNWH2 – Pacific Northwest Hydrogen Hub (WA/OR/MT) - Home - Pacific Northwest Hydrogen Association (pnwh2.com)

The selection of the regional hydrogen hubs is an extremely exciting step in the development in the accelerated development of a new clean energy industry. Saul Ewing congratulates the selected projects. We have experience working with clients who are in the energy, manufacturing, utilities and research sectors who are involved with hydrogen, and look forward to the next steps in the process.