A digital 3D rendering of a metal hydrogen pipeline.
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President Joe Biden and U.S. Department of Energy Secretary Jennifer Granholm will announce seven regional “hydrogen hubs” on Friday that are eligible for up to $7 billion in federal funding, according to senior White House administration officials.
The hydrogen hubs will be funded by money included in the bipartisan infrastructure bill that President Biden signed into law in November 2021.
Hydrogen is the simplest and most abundant element on Earth, but it rarely occurs alone and therefore generally needs to be split off from other atoms (as in the case of water or H2O). This can be done with an electrically powered electrolyzer. Hydrogen can also be produced from natural gas in a process called steam methane reforming.
Hydrogen is currently used to produce fertilizers and in various industrial processes, particularly in the petrochemical industry. However, because hydrogen does not release carbon dioxide when burned as fuel, it is part of the Biden administration’s strategy to reduce greenhouse gases in industries such as long-distance transportation, ocean freight shipping and aviation. Hydrogen is also seen as a potential energy storage to balance the fluctuations of renewable energy sources such as wind and solar.
However, hydrogen is only a good means of reducing CO2 if it can be produced with low emissions – this is often not the case today. The new hubs will be aimed at this goal.
The seven hydrogen hubs span 16 states and are organized by geographic regions that have particular strength in driving the development and growth of the hydrogen industry in the United States. The hubs are not individual facilities, but rather a collection of interconnected facilities that work together to develop the domestic hydrogen economy in the United States.
The $7 billion in federal funding will catalyze an estimated $43 billion in private sector investment, according to comments from senior White House administration officials in a call with reporters Thursday afternoon.
Federal funding will be distributed as regional hubs reach incremental milestones, senior White House administrators said. But the manufacturing hubs will all drive job creation, an issue Biden has repeatedly touted as a side effect of developing a clean economy.
The seven chosen are as follows:
Appalachian Hydrogen Hub: The Appalachian Hydrogen Hub covers portions of West Virginia, southeastern Ohio and southwestern Pennsylvania and will utilize the region’s large volumes of natural gas. Located in the industrial heartland, it will provide hydrogen for industrial applications throughout the United States. It is also located at a transportation hub that allows for easy transport of the hydrogen.
California Hydrogen Hub: The California Hydrogen Hub stretches from Southern California to Northern California and includes three ports: Los Angeles, Long Beach and Oakland. Ports are very important as hydrogen is considered a prime candidate for decarbonizing the shipping industry. In addition, hydrogen will play a key role in heavy-duty transport and transporting goods from ports.
Hydrogen center in the Gulf state: The Gulf State Hydrogen Hub will be based in Houston, Texas and will cover most of the Gulf Coast and southeast Texas. Texas has large amounts of energy that can be used to produce hydrogen.
Heartland Hydrogen Hub: The Heartland Hydrogen Hub is located in Minnesota and has a significant presence in North Dakota and South Dakota. It uses the very inexpensive and abundant wind resources to produce clean hydrogen. The hydrogen produced at the Heartland Hydrogen Hub will be used at least in part for agricultural purposes, as hydrogen is a key component in the production of fertilizer.
Mid-Atlantic Hydrogen Hub: The Mid-Atlantic Hydrogen Hub spans portions of Pennsylvania, Delaware and New Jersey and will utilize repurposed infrastructure along the Delaware River.
Hydrogen Center in the Midwest: The Midwest Hydrogen Hub is located in Illinois, northwest Indiana and southwest Michigan and will produce hydrogen from nuclear power, among other sources. Additionally, the Midwest Hydrogen Hub is located at a transportation hub for the United States, making it attractive.
Hydrogen Hub in the Pacific Northwest: The Pacific Northwest Hydrogen Hub covers eastern Washington, northeastern Oregon and some parts of Montana and will produce hydrogen for fertilizer production. It will likely be connected to the California Hydrogen Hub.
The hydrogen centers, which use natural gas to produce hydrogen, will use carbon capture technologies, senior administration officials said. The hydrogen hubs, which use renewable clean energy, will use a combination of new, clean energy sources and some will use existing clean energy sources in the region.
Additionally, the hydrogen tax credit included in the Inflation Reduction Act will be a key component to the economic viability of these hubs. Guidance on how this tax credit will be decided is not yet available but is expected by the end of the year.