The US Department of Energy has selected seven hydrogen hub applications to proceed to a funding negotiation stage, with $7 billion to be split between them. DoE estimates the funding will be met with a $40 billion total investment from the various hub partners, with subsidies from the new Clean Hydrogen Production Tax Credit (45V) program (amongst others) also available to hydrogen producers. A $1 billion demand-side scheme has also been launched to help create certainty for future hydrogen producers in the US.
From Appalachia to the Californian coast
The seven successful applications have a broad range of priorities, production pathways and target markets for hydrogen:
- California’s Alliance for Renewable Clean Hydrogen Energy Systems (ARCHES), a statewide effort to establish renewable hydrogen production, storage and distribution infrastructure, primarily focused on decarbonising public transport, heavy transport and port operations.
- the Mid-Atlantic Clean Hydrogen Hub (MACH2) across Pennsylvania, Delaware, and New Jersey, which will focus on renewable & nuclear-powered hydrogen production for heavy transport fuel and replacing industrial feedstocks.
- the similarly-named Midwest Alliance for Clean Hydrogen (MachH2) across Illinois, Indiana, and Michigan, which will focus on decarbonising steel and glass production, power generation, refining, heavy-duty transportation, agriculture (fertiliser production) and sustainable aviation fuel.
- the Pacific Northwest Hydrogen Hub across Washington, Oregon, and Montana, which will focus on power generation, create a new form of energy storage, and decarbonising heavy industry, transportation and fertiliser production.
- the Heartland Hydrogen Hub (HH2H) across Minnesota, Montana, North Dakota, South Dakota, and Wisconsin, which will produce CCS-based hydrogen for power generation, ammonia & urea (fertiliser) production and heavy industry.
- the Gulf Coast Hydrogen Hub (HyVelocity), which will build on & support Houston’s Clean Hydrogen Roadmap across Texas and southwest Louisiana. The Hub will tap into the existing 1000-plus km of hydrogen pipeline and 48 hydrogen production plants already on the Gulf Coast. HyVelocity industry partners include notable Ammonia Energy organisations like AES, Air Liquide, Chevron, ExxonMobil, Mitsubishi Power Americas and project lead GTI Energy.
- and the Appalachian Regional Clean Hydrogen Hub (ARCH2) across West Virginia, Ohio, Kentucky, and Pennsylvania. CCS-based hydrogen will be produced for power generation, energy storage, and decarbonising heavy industry & transportation. The Adams Fork clean ammonia plant (more than 2 million tonnes production per year) has already been announced as a key part of this Hub.
Readers at Ammonia Energy will notice a number of recurring themes amongst the successful applicants. The key target markets (eg. power generation, fertiliser production, decarbonised industrial feedstocks), the strategic locations chosen (particularly the Gulf Coast & the Midwest), the leveraging of existing infrastructure & expertise, and the consortium-style approach are all common features of new hydrogen & ammonia projects.
With this historic investment, the Biden-Harris Administration is laying the foundation for a new, American-led industry that will propel the global clean energy transition while creating high quality jobs and delivering healthier communities in every pocket of the nation.U.S. Secretary of Energy Jennifer Granholm in the DoE’s official press release, 13 Oct 2023