NorthAmOil: Biden administration unveils $7bn in funding for first seven US hydrogen hubs

The administration of US President Joe Biden has announced $7bn in funding for America’s first seven clean hydrogen hubs.

The Regional Clean Hydrogen Hubs (H2Hubs) will accelerate the commercial-scale deployment of low-cost, clean hydrogen – which the US Department of Energy (DOE) describes as a valuable energy product that can be produced with zero or near-zero carbon emissions.

The hubs will be funded by the Bipartisan Infrastructure Law, and will “kick-start” a national network of clean hydrogen producers, consumers and connective infrastructure while supporting the production, storage, delivery and end-use of clean hydrogen.

The hubs are in the Gulf Coast region, California, the Pacific Northwest, the Heartland, Appalachia, Midwest and Mid-Atlantic. They draw together parties such as private companies including oil and gas majors, renewable energy companies and states.

Companies in the winning hubs – which must still negotiate with DOE to secure the final funding – include AES Corp., Air Liquide, Chevron, Dupont, Enbridge, ExxonMobil, Mitsubishi Power Americas, Ørsted and Sempra Infrastructure.

The seven hubs are expected collectively to produce 3mn tonnes per year (tpy) of hydrogen, reaching nearly a third of the 2030 US’s production target and lowering emissions from hard-to-decarbonise industrial sectors. The sectors are being targeted because they represent 30% of total US carbon emissions.