The Biden-Harris Administration has announced awards of up to $2.2 billion for two regional clean hydrogen hubs in the US that will help accelerate the commercial-scale deployment of low-cost clean hydrogen. 

These grants are part of President Biden’s “Investing in America” agenda and were awarded by the US Department of Energy (DOE) to Gulf Coast H2Hub and Midwest H2Hub. 

According to the US government, both projects are key pillars of the DOE’s H2Hubs program, which was created by the Bipartisan Infrastructure Law to promote a national network of clean hydrogen producers, consumers, and infrastructure, while supporting the production, storage, delivery, and end use of clean hydrogen. 

As part of its H2Hubs program, the DOE will allocate up to 1.2 billion dollars in federal cost share for the Gulf Coast Hydrogen Hub, led by HyVelocity (HyV), and up to 1 billion dollars in federal cost share for the Midwest Hydrogen Hub, led by the Midwest Alliance for Clean Hydrogen LLC (MachH2).  

These grants add to the three H2Hubs awarded earlier, collectively boosting private sector investment in clean hydrogen, positioning the country to achieve critical long-term decarbonization goals. 

Gulf Coast Hydrogen Hub 

Through a balanced portfolio of producers and consumers, the Gulf Coast Hydrogen Hub plans to leverage the abundant supply of renewable energy and natural gas from the Gulf Coast region to reduce the cost of hydrogen, a crucial step for market uptake. The Hub proposes to produce clean hydrogen from water through electrolysis and from natural gas, while utilizing carbon capture and storage. 

These proposed clean hydrogen investments aim to catalyze regional decarbonization solutions and contribute to the deployment of the US national clean hydrogen network. The Hub is expected to create around 45.000 direct jobs over the life of the project. 

Midwest Hydrogen Hub 

Given its location in a key industrial and transportation corridor, this Hub plans to leverage the region’s diverse energy sources (including renewable wind energy, natural gas, and nuclear energy) to support the decarbonization of industries such as steel and glass production, manufacturing, energy generation, refining, and heavy transport in Illinois, Indiana, Iowa, and Michigan. 

The Midwest Hydrogen Hub is expected to create around 12.000 direct jobs over the life of the project. According to the White House, the Department of Energy’s investment in the H2Hubs program is one of the largest investments in clean industries and employment in history. 

Recipients will match this transformative federal investment to mobilize billions of dollars aimed at strengthening local economies, creating and maintaining high-quality jobs, and positioning the U.S. as a global leader in emerging energy industries. 

The seven selected H2Hubs are expected to produce millions of metric tons of hydrogen annually, bringing the US closer to its 2030 production target and reducing emissions from hard-to-decarbonize industrial sectors that represent 30% of the country’s total carbon emissions. 

Together, they will also reduce tens of millions of metric tons of carbon dioxide (CO2) emissions from end-uses annually (an amount roughly equivalent to the combined annual emissions of millions of gasoline-powered cars) and create and sustain tens of thousands of well-paying jobs nationwide, while supporting healthier communities. 

Community Benefits 

The H2Hubs program, managed by the DOE’s Office of Clean Energy Demonstrations, seeks to promote clean hydrogen in the US while generating economic and environmental benefits for local communities. 

Each Hub will commit to developing quality jobs, environmental and energy justice, and emissions reduction, ensuring tangible benefits for the regions involved. 

The DOE will organize virtual meetings to inform and gather community input on the selected projects. 

Additionally, the Office of Clean Energy Demonstrations (OCED) will oversee the progress of the Hubs through a phased approach, evaluating the achievement of objectives such as training, well-paid jobs, and community benefits before approving additional federal funds. 

US Secretary of Energy Jennifer M. Granholm stated, "The Biden-Harris administration has fulfilled its promise to launch a new national hydrogen industry capable of producing fuel from nearly any energy resource in virtually every part of the country, powering heavy-duty vehicles, heating homes, and fertilizing crops."