U.S. to support clean hydrogen economy with up to $1 billion investment

Authorities & Government

July 7, 2023, by Aida Čučuk

The U.S. Department of Energy (DOE) has released a Notice of Intent (NOI), which includes a Request for Information (RFI), to invest up to $1 billion in a demand-side initiative to support the Regional Clean Hydrogen Hubs (H2Hubs).

Funded by President Biden’s Bipartisan Infrastructure Law, the H2Hubs program will help form the foundation of a national clean hydrogen network, U.S. DOE said, adding that the announcement will help ensure both producers and end users in the H2Hubs have the market certainty they need during the early years of production to unlock private investment and realize the full potential of clean hydrogen.

DOE further noted that clean hydrogen offers substantial economic benefits and will help create tens of thousands of new, good-paying jobs across the country, and according to its “Pathways to Commercial Liftoff: Clean Hydrogen” report, America’s growing hydrogen economy has the potential to add 100,000 net new direct and indirect jobs by 2030.

U.S. DOE also said the NOI will help it refine and validate its approach to provide demand-side support for the hubs to enter the clean hydrogen market and will identify the best approach to engaging and potentially involving private sector institutions in the organization, capitalization and execution of the implementing entity’s mandate.

To help inform the design of a demand-side support mechanism for the H2Hubs program, the NOI seeks public input on potential benefits and risks, operating models, governance structures and equipped implementing partners, DOE revealed, adding that the NOI is also informed by DOE’s dialogue with the energy industry, clean energy investment firms, nonprofit entities, non-governmental organizations and public response from the demand-side request for information issued in spring 2022 and from DOE’s “Pathways to Commercial Liftoff” report on clean hydrogen.

U.S. Secretary of Energy Jennifer M. Granholm stated: “Ensuring America is the global leader in the next generation of clean energy technologies requires all of us, government and industry, coming together to confront shared challenges, particularly lack of market certainty for clean hydrogen that too often delays progress. That’s why DOE is setting up a new initiative to help our private sector partners address bottlenecks and other project impediments, helping industry unlock the full potential of this incredibly versatile energy resource and supporting the long-term success of the H2Hubs.”

According to U.S. DOE, later this year, the Biden-Harris Administration will announce the selection of six to ten H2Hubs for a combined total funding of up to $7 billion in federal funding.