The Biden administration has announced the recipients of a share of $7bn in grants for the construction of “hydrogen hubs” in 16 states. The grants are issued as part of the Regional Clean Hydrogen Hub programme, which aims to establish networks of hydrogen producers and consumers that will be linked with new and existing infrastructure.
By 2050, the US wants to produce 50 million tonnes of clean or ‘green’ hydrogen, a fivefold increase from today. Clean hydrogen is seen as an important energy source for decarbonising high-emitting industrial sectors.
Hydrogen, if produced cleanly, will help to decarbonise large industries such as fertilisers and steel. Along with helping to produce green hydrogen, the hubs could help boost demand for electrolysers, the water-splitting devices that make green hydrogen. Additional demand could help drive down the price of electrolysers by incentivising investment.
Speaking in Philadelphia on Friday, US President Joe Biden said: “I am here to announce one of the largest manufacturing investments in the history of this nation.”
The following are winners of the hydrogen hub proposals:
California Hub
Amount awarded: Up to $1.2bn
Location: Across California
Partners: Bosch, Chevron, Microsoft and others.
Estimated job creation: 130,000 construction jobs and 90,000 permanent jobs.
The California hub will use the state’s existing technology to produce green hydrogen from renewable energy and biomass.
Gulf Coast Hub
Amount awarded: Up to $1.2bn
Location: Houston region, Texas
Partners: Air Liquide, Exxon Mobil, Chevron and others.
Estimated job creation: 35,000 construction jobs and 10,000 permanent jobs.
Houston, where this project is centred, is known as the energy capital of the world. The hub plans large-scale production of ‘blue hydrogen’, which is created from natural gas with carbon capture and renewables-powered electrolysis.
Midwest Hub
Amount awarded: Up to $1bn
Location: Illinois, Indiana and Michigan
Partners: Air Liquide, Arcellor Mittal, BP and others.
Estimated job creation: 12,100 construction jobs and 1,500 permanent jobs.
The hub will power steel and glass production, power generation, refining, heavy-duty transportation and sustainable aviation fuel.
Pacific Northwest Hub
Amount awarded: Up to $1bn
Location: Washington, Oregon and Montana
Partners: Air Liquide, Amazon, Mitsubishi and others.
Estimated job creation: 8,050 construction jobs and 350 permanent jobs.
The region’s abundant renewable energy sources will be used to produce clean hydrogen. Electrolysers will be used to drive down the cost of producing hydrogen and ensure the process becomes cheaper for other producers.
Heartland Hub
Amount awarded:Up to $925m
Location: North Dakota, South Dakota and Minnesota
Partners: Xcel Energy, Marathon Petroleum, TC Energy and others.
Estimated job creation: 3,067 construction jobs and 703 permanent jobs.
The region has a large agricultural sector. The hub will be used to reduce the cost of clean hydrogen, help decarbonise the production of fertiliser and advance the use of clean hydrogen in electricity production.
Appalachian Hub
Amount awarded: Up to $925m
Location: West Virginia, Ohio and Pennsylvania
Partners: EQT, GTI Energy and others.
Estimated job creation: 18,000 construction jobs and 3,000 permanent jobs.
Hydrogen pipelines, multiple hydrogen refuelling stations and permanent carbon storage facilities will be used to drive down the cost of hydrogen distribution and storage.
Mid- Atlantic Hub
Amount awarded: Up to $750m
Location: Pennsylvania, Delaware and New Jersey
Partners: Air Liquide, DuPont, Enbridge and others.
Estimated job creation: 14,400 construction jobs and 6,400 permanent jobs.
The region is traditionally associated with oil production. The historic oil infrastructure will be repurposed, and the hub will be used to advance hydrogen-driven decarbonisation.
