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Seven regional Hydrogen Hubs selected, will receive $7B

October 19, 2023

The administration recently announced that seven regional clean hydrogen hubs have been selected to receive $7 billion in Bipartisan Infrastructure Law funding. The hubs are located in California, Delaware, Illinois, Indiana, Michigan, Minnesota, Montana, New Jersey, North Dakota, Ohio, Oregon, Pennsylvania, South Dakota, Texas, Washington and West Virginia.

The hubs aim to produce more than three million metric tons of clean hydrogen per year, achieving nearly one-third of the 2030 U.S. clean hydrogen production goal. The seven Hydrogen Hubs are expected to eliminate 25 million metric tons of carbon dioxide emissions from end uses each year—roughly equivalent to the combined annual emissions of over 5.5 million gasoline-powered cars.

The seven selected regional clean hydrogen hubs are expected to catalyze more than $40 billion in private investment and create tens of thousands of well-paying jobs, bringing the total public and private investment in hydrogen hubs to nearly $50 billion. Roughly two-thirds of the project investment is associated with green (electrolysis-based) production within the hubs. Several hubs were developed in close partnerships with unions.

Clean hydrogen is expected to reduce emissions in many sectors of the economy, according to the announcement from the White House, which states, “It is essential for hard-to-decarbonize sectors and industrial processes, such as heavy-duty transportation and chemical, steel, and cement manufacturing. Targeted investments in these areas may help reduce costs, make new breakthroughs, and create jobs for American engineers, manufacturing workers, construction workers, and others.“

The hubs include:

Mid-Atlantic Hydrogen Hub (Mid-Atlantic Clean Hydrogen Hub (MACH2); Pennsylvania, Delaware, New Jersey)—The Mid-Atlantic Hydrogen Hub will help unlock hydrogen-driven decarbonization in the Mid-Atlantic while repurposing historic oil infrastructure and using existing rights-of-way. As part of its labor and workforce commitments to the community, the Mid-Atlantic Hydrogen Hub plans to negotiate Project Labor Agreements for all projects and provide close to $14 million for regional Workforce Development Boards. This Hydrogen Hub anticipates creating 20,800 direct jobs.

Appalachian Hydrogen Hub (Appalachian Regional Clean Hydrogen Hub (ARCH2); West Virginia, Ohio, Pennsylvania)—The Appalachian Hydrogen Hub will leverage the region’s access to low-cost natural gas to produce low-cost clean hydrogen and permanently and safely store the associated carbon emissions. The Appalachian Hydrogen Hub is anticipated to bring quality job opportunities to workers in coal communities and create more than 21,000 direct jobs.

California Hydrogen Hub (Alliance for Renewable Clean Hydrogen Energy Systems (ARCHES); California)—The California Hydrogen Hub will leverage the Golden State’s leadership in clean energy technology to produce hydrogen exclusively from renewable energy and biomass. It will create an expected 220,000 direct jobs.

Gulf Coast Hydrogen Hub (HyVelocity Hydrogen Hub; Texas)—The Gulf Coast Hydrogen Hub will help kickstart the clean hydrogen economy with its plans for large-scale hydrogen production through natural gas with carbon capture and renewables-powered electrolysis. This Hydrogen Hub is expected to create approximately 45,000 direct jobs.

Heartland Hydrogen Hub (Minnesota, North Dakota, South Dakota)—The Heartland Hydrogen Hub will help decarbonize the agricultural sector's fertilizer production, decrease the regional cost of clean hydrogen, and advance the use of clean hydrogen in electric generation and for cold climate space heating. The Heartland Hydrogen Hub anticipates creating 3,880 direct jobs.

Midwest Hydrogen Hub (Midwest Alliance for Clean Hydrogen (MachH2); Illinois, Indiana, Michigan)—The Midwest Hydrogen Hub will enable decarbonization through strategic hydrogen uses, including steel and glass production, power generation, refining, heavy-duty transportation, and sustainable aviation fuel. It anticipates creating 13,600 direct jobs.

Pacific Northwest Hydrogen Hub (PNW H2; Washington, Oregon, Montana)—The Pacific Northwest Hydrogen Hub plans to leverage the region’s abundant renewable resources to produce clean hydrogen exclusively from renewable sources. This Hydrogen Hub is expected to create more than 10,000 direct jobs.

Additional information about each hub can be found here.

hydrogen, economic impact