Department of Energy to invest up to $1B in demand-side initiative backing Regional Clean Hydrogen Hubs
The Biden administration released a Notice of Intent and Request for Information through the U.S. Department of Energy (DOE) last week, as part of a plan to invest up to $1 billion in a demand-side initiative supporting Regional Clean Hydrogen Hubs (H2Hubs).
“Ensuring America is the global leader in the next generation of clean energy technologies requires all of us — government and industry — coming together to confront shared challenges, particularly lack of market certainty for clean hydrogen that too often delays progress,” U.S. Secretary of Energy Jennifer Granholm said. “That’s why DOE is setting up a new initiative to help our private sector partners address bottlenecks and other project impediments — helping industry unlock the full potential of this incredibly versatile energy resource and supporting the long-term success of the H2hubs.”
The program is built around the concept of clean hydrogen, an energy carrier that can be created with low or no carbon emissions, and which DOE data marked as capable of adding 100,000 net new direct and indirect jobs by 2030, if properly developed.
However, clean hydrogen requires more private investment to be viable, and investors need some sense of market certainty. As such, the Biden administration funded the H2Hubs program through the Bipartisan Infrastructure Law to build the foundations for early production. Demand formation, according to the DOE, typically lags behind creation of reliable supply. This program will support growth and sustainability of hubs by offering guaranteed revenue for hydrogen producers to use in attracting private sector investment.
The DOE will use its new NOI to refine and validate its approach to demand-side support at these hubs and allow it to identify best approaches for engagement with the private sector. Along the way, public info will also be sought on potential benefits, risks, operating models, governing structures and implementing partners. Partners from the private sector will be potentially sought in the organization, capitalization and execution of mandates.
Between six and 10 H2Hubs will be selected for up to a combined $7 billion in federal funding later this year.
