Coalition of western states to jointly compete for $8B federal funding to build regional clean hydrogen hub

Colorado, New Mexico, Utah, and Wyoming recently formed a coalition to jointly compete for a portion of the $8 billion in federal funding currently offered for the development of regional green hydrogen hubs.

The basis for this clean energy effort was laid in the federal Infrastructure Investment and Jobs Act of 2021, which opened this federal funding for bidding. Each of the mountainous western states linked for this competition sees themselves as perfect fits for such an arrangement, given the growing convergence of wind, solar, biomass, natural gas, and other energy resources within them.

“New Mexico is proud to be part of this powerful collaboration with other western governors during this pivotal time of expanding clean energy,” New Mexico Governor Michelle Lujan Grisham said. “New Mexico brings incredible value to this partnership, which not only progresses our shared goals around climate change but creates jobs, fosters innovation, and lifts up millions of Americans. New Mexico’s commitment to growing renewable energy and meeting its ambitious climate goals lays the foundation for a thriving clean hydrogen economy. Make no mistake, New Mexico and our partner states will succeed in developing the nation’s most productive clean hydrogen hub.”

Together, the partners will develop the Western Inter-State Hydrogen Hub. In return, this will spiderweb out with each state hosting supporting facilities. While the U.S. Department of Energy has not officially released its request for proposals (RFP) on new hydrogen hubs of this sort as yet, this preemptive move will prepare the states for its predicted release in May 2022.

Each state has already readied itself to the possibilities in its own way. Utah cited its low energy prices, natural resources, infrastructure, and workforce. In Wyoming, Gov. Mark Gordon noted that several businesses have already targeted the state as a potential hydrogen production center and that academic and government interests have pushed the development of hydrogen policy and technology. Meanwhile, in Colorado, current greenhouse gas emissions reductions goals would cut emissions 50 percent by 2030 and 90 percent by 2050. These efforts will be coupled with the use of low carbon hydrogen – something Gov. Jared Polis said would particularly benefit industry and heavy transportation.

“Colorado’s leadership in decarbonizing the electric sector using abundant wind and solar resources, existing gas supply chain and strong intellectual capital including universities and the National Renewable Energy Laboratory position Colorado to build the technology and workforce needed to scale hydrogen in the region and around the world,” Polis added.