Biden announces hydrogen hub investment

Ohio part of Appalachian hub

Department of Energy Regional Clean Hydrogen Hubs across USA

President Biden and U.S. Department of Energy Secretary Jennifer Granholm announced the creation of seven regional clean hydrogen hubs that will receive $7 billion in Infrastructure, Investment and Jobs Act funding to accelerate the domestic market for low-cost, clean hydrogen.
 
According to the White House, the seven selected regional clean hydrogen hubs will utilize more than $40 billion in private investment and create tens of thousands of good-paying jobs – bringing the total public and private investment in hydrogen hubs to nearly $50 billion.
 
Roughly two-thirds of total project investment is associated with green (electrolysis-based) production, within the hubs. Several of the hubs were developed in close partnership with building trades unions, with three requiring Project Labor Agreements (PLAs).
 
The Hydrogen Hub program is designed to create a national network of producers, consumers and intermediary organizations to accelerate the nation’s production, storage, delivery and consumption of clean, affordable hydrogen.
 
Collectively, the hubs aim to produce more than 3 million metric tons of clean hydrogen per year, which will account for nearly one-third of the 2030 U.S. clean hydrogen production goal. Together, the seven hydrogen hubs will eliminate 25 million metric tons of carbon dioxide emissions from end users each year – an amount roughly equivalent to the combined annual emissions of over 5.5 million gasoline-powered cars.
 
“Unlocking the full potential of hydrogen – a versatile fuel that can be made from almost any energy resource in virtually every part of the country – is crucial to achieving President Biden’s goal of American industry powered by American clean energy, ensuring less volatility and more affordable clean energy options for American families and businesses,” said Granholm, in a prepared statement.
 
It will lead to the development of hydrogen pipelines, multiple hydrogen fueling stations and permanent CO2 storage.
 
The DOE hopes the hubs will help it reach its goal to reduce the cost of clean hydrogen by 80 percent, to $1 per 1 kilogram in one decade.
 
The nearly $50 billion investment is one of the largest investments in clean manufacturing and jobs in history.
 
Regions selected for the hydrogen hubs include: Mid-Atlantic (Pennsylvania, Delaware, New Jersey); Appalachian (West Virginia, Ohio, Pennsylvania); California; Texas; Heartland (Minnesota, North Dakota, South Dakota); Midwest (Illinois, Indiana, Michigan); and Pacific Northwest (Washington, Oregon, Montana).
 
The three hubs committed to use PLAs include Mid-Atlantic, California and Pacific Northwest.
 
The Appalachian Hydrogen Hub, which includes Ohio, will leverage the region’s ample access to low-cost natural gas to produce low-cost clean hydrogen and permanently and safely store the associated carbon emissions.
 
The strategic location of this Hydrogen Hub and the development of hydrogen pipelines, multiple hydrogen fueling stations and permanent CO2 storage also have the potential to drive down the cost of hydrogen distribution and storage.
 
A report in the Weirton Daily Times stated the individual nodes within the Appalachian Hub include Ashtabula, Canton and Hopedale in Ohio; Belle, Follansbee, North Point Pleasant, Washington and Fairmont in West Virginia; and Labelle and West Keating Township in western Pennsylvania.
 
The Appalachian Hub is slated to receive up to $925 million from the Bipartisan Infrastructure Law, according to U.S. Sen. Joe Manchin (D-W.Va.). It is anticipated to create more than 21,000 direct jobs – including more than 18,000 in construction and more than 3,000 permanent jobs.
 
Battelle is the prime contractor for the Appalachian Hub project and plans to create a Community Benefits Advisory Board to oversee the implementation of the Community Benefits Plan (CBP) and a Community Commitment Fund to ensure the Hub reenergizes the Appalachian region economically, socially and environmentally.  
 
Battelle issued a prepared statement that highlighted the highly skilled energy workforcein the Appalachian Region, along with support from labor organizations, environmental non-profits, academic institutions and community stakeholders. Collaboration with these groups will be integral to project development and associated job retention and creation, particularly in disadvantaged and underserved communities, the contractor said.
 
“We intend to lead this public-private partnership with vigor and excellence meeting government and industry objectives, addressing technical, commercial and social justice goals, including proving hydrogen’s economic viability, in a highly transparent manner,” said Lou Von Thaer, Battelle President and CEO.
 
According to the U.S. Department of Energy, the hubs will target sectors that are difficult to decarbonize and electrify, such as heavy-duty, long-distance transportation; steel, cement and chemical manufacturing; and the production of liquid fuels. These sectors represent roughly 30 percent of total U.S. carbon emissions.
 
Hydrogen can be produced from diverse domestic resources like solar energy, wind, nuclear energy, biomass and natural gas with safe and responsible carbon capture, with the potential for near-zero greenhouse gas emissions from production.
 
The ultimate goal of the hubs is to generate multistate hydrogen ecosystems that ultimately will expand and connect to form a national hydrogen economy.