US president Joe Biden is expected to announce the winners of $7bn in federal grants to build regional hydrogen hubs on Friday.

Three sources close to the matter told Reuters that states such as California and Pennsylvania had been battling for their share of the $7bn for months as the US looks to produce 50 million tonnes of clean hydrogen fuel by 2050.

The grant is being issued as part of the Regional Clean Hydrogen Hubs programme, which will assist the funding of six to ten regional clean hydrogen hubs across the US.

Originally, in 2022, 79 applicants requested the funding from the US Department of Energy, and by January 2023, 33 were advised to move forward by writing a full application.

The hubs have both public sector and private sector partners and are expected to provide ample investment and a horde of jobs.

Hydrogen can be used as a sustainable energy source in multiple industries including shipping, steelmaking, fertiliser production and aviation.  The Inflation Reduction Act (2022) already enabled producers of green hydrogen to claim tax credits for the hydrogen they produce, as well as for any new clean energy that is generated to make hydrogen. The announcement on Friday will further spur the US hydrogen industry.

The regional hubs will comprise clusters of interconnected hydrogen producers, consumers and transport infrastructure.

Biden is set to travel to the Philadelphia region on Friday to discuss how his administration is building union jobs and progressing towards widespread sustainable energy production.