The US Department of Energy’s (DOE’s) Office of Clean Energy Demonstrations has announced initial funding awards for two additional regional clean hydrogen hubs, bringing the total number of regional hydrogen hubs with initial funding awards to five. The regional hydrogen hubs are expected to create networks of hydrogen producers, consumers, and local connective infrastructure and accelerate the use of hydrogen as a clean energy carrier.

The majority of the selected regional hydrogen hubs encompass plans to develop and construct infrastructure that will facilitate increased hydrogen use in the transportation sector, including projects that will develop hydrogen refueling infrastructure, expand the use of hydrogen-powered trucks, equipment, buses, and vehicles, and upgrade maintenance facilities to handle hydrogen-powered vehicles. The development and expansion of the hydrogen network and infrastructure is essential to the nationwide deployment and adoption of hydrogen-powered transportation.

Background

Hydrogen is a clean-burning fuel source with vast applicability that can be used in a wide variety of sectors, including hard-to-decarbonize industries such as the transportation sector. Increased use of hydrogen fuel in the transportation sector depends on the availability and development of an expansive hydrogen refueling infrastructure.

In October 2023, DOE announced its selection of seven regional hydrogen hub projects located across the country for award negotiations for up to $7 billion in federal funding. As we previously discussed, the funding aims to accelerate the commercial-scale deployment of low-cost, clean hydrogen as an alternative source of energy and the creation of networks of clean hydrogen producers, consumers, and infrastructure.

Initial Funding Awards

DOE issued initial funding awards to three hydrogen hubs in July 2024 and two additional hydrogen hubs in November 2024. These initial funding awards will help fund Phase 1 work, which includes planning, development, and design activities, site selection, technology deployment, and stakeholder and community engagement.

The hydrogen hubs intend for multiple uses of hydrogen as fuel for electric generation, heavy industries, and transportation. Specific to the transportation sector, each of the hydrogen hubs feature efforts to expand hydrogen use in transportation and develop the necessary associated infrastructure.

• The Appalachian Hydrogen Hub (ARCH2) received $30 million of its $925 million federal cost share to start work on 11 projects in West Virginia, Pennsylvania, and Ohio. These projects include a hydrogen production facility, on-site storage, and connective infrastructure for fueling a regional transit authority’s fleet of hydrogen fuel cell buses and vehicles; a clean fuel services depot with hydrogen fueling and vehicle maintenance facilities for heavy- and medium-duty trucks, buses, and material-handling and processing equipment; and a liquid hydrogen project and a distribution and on-road mobility project that will feature hydrogen storage, refueling stations, and stationary fuel cells to support material-handling equipment, stationary backup power, and fuel cell electric vehicles.
• The California Hydrogen Hub (ARCHES) received $30 million of its $1.2 billion federal cost share. The California Hydrogen Hub sets out plans for multiple hydrogen production projects, more than 60 hydrogen fueling stations to serve hydrogen-powered trucks and buses, and deploying hydrogen fuel cell electric cargo-handling equipment.
• The Gulf Coast Hydrogen Hub received $22 million of its $1.2 billion federal cost share to start work on a hydrogen liquefaction facility, which will support regional refueling stations and other liquid hydrogen customers, with a focus on the heavy-duty sector, as well as hydrogen production facilities and hydrogen pipelines.
• The Midwest Hydrogen Hub (MachH2) received $22.2 million of its $1 billion federal cost share and plans to build new hydrogen refueling stations in Illinois, Indiana, and Michigan. The hub also plans to deploy at least 20 liquid hydrogen tanker trailers and 65 hydrogen-powered medium- or heavy-duty vehicles.
• The Pacific Northwest Hydrogen Hub (PNWH2) received $27.5 million of its $1 billion federal cost share to start work on eight nodes, or groups of projects spanning across Washington, Oregon, and Montana. The Pacific Northwest Hydrogen Hub includes plans to build heavy-duty truck refueling stations and infrastructure to deliver hydrogen fuel for end-use consumption along three key highway systems. It also includes plans to utilize hydrogen liquefaction, liquid hydrogen storage, hydrogen delivery trailers, heavy-duty hydrogen-powered trucks, and cargo handling equipment at ports for use in heavy-duty transportation and other end uses.
• The Mid-Atlantic Hydrogen Hub, whose award remains under negotiations, plans to expand hydrogen application to heavy-duty transportation in Pennsylvania, Delaware, and New Jersey, upgrade bus mechanic depots to handle hydrogen-powered buses, and develop fueling stations for hydrogen-powered vehicles.
• The Heartland Hub, whose award also remains under negotiations, consists of projects across North Dakota, South Dakota, and Minnesota, with plans to use open-access storage and pipeline infrastructure to create a hydrogen network accessible to both current and new hydrogen users.

With the latest initial funding awards, five of the seven selected regional hydrogen hubs are now proceeding with their Phase 1 projects. These projects will facilitate the development and demonstration of hydrogen production facilities, hydrogen pipelines, hydrogen liquefaction facilities, hydrogen storage, hydrogen delivery trailers, standardized and replicable hydrogen fueling stations, and maintenance facilities, all of which will support increased use and adoption of medium- and heavy-duty hydrogen-powered trucks, equipment, and buses and hydrogen-powered vehicles.