DOE selects seven regional hydrogen hubs: up to USD 7 billion in support

The US Department of Energy (DOE) announced on 13 October 2023 the selection of seven regional clean hydrogen hubs, to which up to USD 7 billion was conditionally allocated. The funds come from the Bipartisan Infrastructure Law.

Scale of the programme

According to DOE, the hubs are to produce about 3 million tonnes of hydrogen a year in total and cut emissions by about 25 million tonnes of CO₂ a year, while the matching contribution of the selected consortia is expected to exceed USD 40 billion. The administration assumed national clean hydrogen production of 10 million tonnes a year by 2030, 20 million by 2040 and 50 million by 2050.

Which regions

The selected hubs were: the Appalachian Hydrogen Hub (ARCH2; West Virginia, Ohio, Pennsylvania) – up to USD 925 million, the California Hydrogen Hub (ARCHES) – up to USD 1.2 billion, the Gulf Coast Hydrogen Hub (HyVelocity, Texas) – up to USD 1.2 billion, the Heartland Hydrogen Hub (Minnesota, North and South Dakota) – up to USD 925 million, the Mid-Atlantic Hydrogen Hub (MACH2; Pennsylvania, Delaware, New Jersey) – up to USD 750 million, the Midwest Hydrogen Hub (MachH2; Illinois, Indiana, Michigan) – up to USD 1 billion, and the Pacific Northwest Hydrogen Hub – up to USD 1 billion (amounts according to Biofuels Digest, quoting the DOE announcement).

The conditional stage

As reported by pv magazine USA, the selection did not amount to a financial commitment by DOE – the agency moved on to negotiations with the applicants. The projects still had to go through assessment stages and work out terms with DOE, including requirements on the impact on local communities.

Where biogas comes in

"Clean" hydrogen in the US classification is not only a product of electrolysis – some hubs also plan to use natural gas with CO₂ capture and biomass. For the biogas sector it matters that biomethane can be a feedstock for steam reforming and that organic waste can be a source of hydrogen from biomass; the final shape of the project portfolio, however, depends on decisions taken during the negotiations.

What is not known

The selection did not settle which projects within the hubs will actually be built and on what scale. Critics, quoted by pv magazine USA, pointed out among other things that investment in the hubs could deepen dependence on fossil fuels.

What this means for Poland and Europe

The American hub model combines production, transport and consumers within one region – a similar logic lies behind the EU's "hydrogen valleys". For Poland it is a signal that support should cover whole value chains, not individual electrolysers.