Xcel Energy, Heartland Hydrogen Hub tapped by DOE as regional hydrogen hub
The U.S. Department of Energy (DOE) has selected the Heartland Hydrogen Hub as one of its seven regional clean hydrogen hubs.
This project will receive up to $925 million in federal funding through the Bipartisan Infrastructure Law (BIL) to produce low-carbon hydrogen at commercial scale in Minnesota, Wisconsin, South Dakota, North Dakota, and Montana.
It is being developed by Xcel Energy, Marathon Petroleum Corporation and TC Energy, in collaboration with the University of North Dakota’s Energy & Environmental Resource Center.
“Clean fuels are a critical component of enabling economy-wide decarbonization. The Heartland Hydrogen Hub is game-changing initiative that demonstrates how we’re accelerating the development of the next generation of clean energy technology with significant benefits for our customers and the environment,” Bob Frenzel, Xcel Energy chairman, president and CEO, said. “The strong partnership with our Upper Midwest states and other energy providers demonstrates our commitment to increasing economic impact while achieving carbon reduction goals for our customers.”
Hydrogen is a clean molecule that can reduce carbon emissions in a variety of sectors. Xcel plans to use its existing and future nuclear, solar and wind resources in the Upper Midwest to produce hydrogen to blend into power generation, existing natural gas distribution systems, and other agricultural and industrial applications. The hub aims to reduce carbon emissions by more than 1 million metric tons per year.
“This federal funding will inject hundreds of millions of dollars into the Upper Midwest economy, helping to deliver an affordable project for our customers,” Chris Clark, president of Xcel Energy—Minnesota, South Dakota and North Dakota, said. “It provides vital financial support for clean energy infrastructure that will deliver reliable, low-cost renewable energy to the communities we serve.”
The Heartland Hydrogen Hub anticipates creating approximately 3,900 total direct jobs, which includes construction and operating jobs. The hub has engaged with communities, tribes, and other stakeholders to identify strategies and programs to promote shared prosperity in the project region.
The DOE’s Regional Clean Hydrogen Hubs (H2Hubs) will kickstart a national network of clean hydrogen producers, consumers, and connective infrastructure while supporting the production, storage, delivery, and end-use of clean hydrogen. The hubs will accelerate the commercial-scale deployment of clean hydrogen—helping generate clean, dispatchable power, create a new form of energy storage, and decarbonize heavy industry, agriculture and transportation.
“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,” U.S. Secretary of Energy Jennifer Granholm, said.
Detailed project design will begin after the Heartland Hydrogen Hub finishes award negotiations. Project development will likely continue through 2035.
The seven selected hydrogen hub projects include Heartland, Appalachian, California, Gulf Coast, Mid-Atlantic, Midwest, and Pacific Northwest.
