President Joe Biden and Energy Secretary Jennifer Granholm on Oct. 13 are set to announce the seven projects – stretching from Pennsylvania to California – that have been selected to receive $7 billion in government backing for hydrogen hubs, according to Bloomberg.
The announcement will be made at the Port of Philadelphia, which the administration said would use hydrogen from a hub proposed for portions of Pennsylvania, Delaware, and New Jersey to fuel trucks and other heavy-duty equipment.
As part of its goal of reaching net-zero emissions by 2050, the Biden administration is throwing its weight behind hydrogen and the hubs, which are broad networks of hydrogen producers and consumers spanning multiple states.
While almost no hydrogen is currently produced in the US, that figure could increase to 10 million mt by 2030, according to an Energy Department report. The administration has started an effort to reduce costs by 80%, to $1 per kilogram by 2030. High cost remains one of the biggest barriers to hydrogen’s widespread use.
| Project Name | Location | Federal Cost Share |
| Appalachian Hydrogen Hub | West Virginia, Ohio, Pennsylvania | Up to $925M |
| California Hydrogen Hub | California | Up to $1.2B |
| Gulf Coast Hydrogen Hub | Texas | Up to $1.2B |
| Heartland Hydrogen Hub | Minnesota, North Dakota, South Dakota | Up to $925M |
| Mid-Atlantic Hydrogen Hub | Pennsylvania, Delaware, New Jersey | Up to $750M |
| Midwest Hydrogen Hub | Illinois, Indiana, Michigan | Up to $1B |
| Pacific Northwest Hydrogen Hub | Washington, Oregon, Montana | Up to $1B |
The Pennsylvania hub will receive up to $750 million in funding and will use existing oil infrastructure to produce hydrogen from both renewable and nuclear energy, according to the White House. Project partners include refiner PBF Energy Inc. and Air Liquide SA.
Other winners include as much as $1.2 billion for a California-based project that will produce hydrogen exclusively from renewable energy and biomass and is aimed at decarbonizing public transportation, heavy-duty trucking, and port operations. Project partners include Amazon and Air Products.
A hydrogen hub backed by Sen. Joe Manchin is receiving up to $925 million and will produce hydrogen using natural gas with carbon capture, according to the White House. The hub spans parts of West Virginia, Ohio, and Pennsylvania and is partnering with natural gas producer EQT Corp.
A Gulf Coast hydrogen hub centered in Houston and backed by companies including Exxon and Chevron Corp. was awarded as much as $1.2 billion. A hub proposed by a coalition of Midwest states that would be partially powered by nuclear energy to provide hydrogen for uses including steel and glass production was awarded up to $1 billion. Project partners include reactor operators Exelon Corp. and Constellation Energy Corp.
The hydrogen hub awards, which were funded in 2021’s bipartisan infrastructure law, mark the culmination of a furious race between states. The Energy Department in January urged 33 projects to submit full applications, after receiving 79 proposals. In addition, the Biden administration has announced plans to award $1 billion to stimulate demand for hydrogen to provide “market certainty” and ensure demand.
Though hydrogen is a clean-burning source of power, it takes large amounts of energy to produce and has a bigger carbon footprint when made with electricity from coal or natural gas. Environmentalists have cautioned that a wave of hydrogen production could drive further demand for fossil-based electricity and unleash more greenhouse gas emissions if it isn’t made using clean power sources.
“The stakes are very high,” said Rachel Fakhry, a policy director at the Natural Resources Defense Council. “The hubs are going to be the first real touchstone of what a hydrogen economy looks like on the ground.”