$7 billion in funding, new roadmap for the US hydrogen industry
By on October 06, 2022
Department of Energy aims to “jump-start” industry in the US
The Biden administration has launched a $7 billion funding program to create regional clean hydrogen hubs (H2Hubs) across the USA. Funded via the recently-passed Infrastructure Reduction Act, the DoE aims to select six to ten hubs to receive funding from the pool. Interested parties are encouraged to utilise the DoE’s H2 Matchmaker online tool to locate producers, end-users and other key stakeholders within their region. Applications for the program are now open.
The DoE has indicated that it is aiming for a diversity of geographical locations, technology pathways and end-use applications in its final selections. As part of an RFI process undertaken last year for the Hydrogen Shot initiative, a variety of “regional advantages” were identified across the US that could help support clean hydrogen production – in different ways.
Draft roadmap launched
Along with the funding program, the DoE launched a draft of a new national hydrogen roadmap for the US (click to download pdf). The draft roadmap:
…provides a snapshot of hydrogen production, transport, storage, and use in the United States today and the opportunity that clean hydrogen could provide in contributing to national goals across sectors. Pathways for clean hydrogen to decarbonize applications are informed by demand scenarios for 2030, 2040, and 2050 – with strategic opportunities for 10 million metric tonnes (MMT) of clean hydrogen annually by 2030, 20 MMT annually by 2040, and 50 MMT annually by 2050.
Executive Summary, DOE National Clean Hydrogen Strategy and Roadmap (Draft – DoE, Sept 2022)
The draft roadmap is also centered on three core strategies: identifying high-impact, targeted uses for clean hydrogen, reducing production costs in line with the Hydrogen Shot initiative ($1/kg by 2030), and focusing on regional networks to bring together stakeholders, drive scale and create a domestic market.
As the “second largest captive market” for hydrogen in the US, ammonia features prominently in the draft roadmap. Analysis from the Argonne National Laboratory estimates that 4-5 million tonnes of clean hydrogen (10% of forecast national production) could be consumed by US ammonia plants in 2050, decarbonising domestic demand for fertiliser & chemical manufacturing.