HSE & Sustainability

White House Announces Seven Regional Hydrogen Hubs

The Bipartisan Infrastructure Law will be used to distribute $7 billion to the seven projects across the country.

Hydrogen Storage Tank In Renewable Energy With Sky View Background
Source: onurdongel/Getty Images

US President Joe Biden and Energy Secretary Jennifer Granholm announced that seven regional clean hydrogen hubs have been selected to receive $7 billion in Bipartisan Infrastructure Law funding in an effort to accelerate the domestic market for low-cost, clean hydrogen.

The seven selected regional clean hydrogen hubs are expected to catalyze more than $40 billion in private investment and create tens of thousands of jobs, bringing the total public and private investment in hydrogen hubs to nearly $50 billion. Roughly two-thirds of total project investment are associated with green (electrolysis-based) production within the hubs. Several of the hubs were developed in close partnerships with unions, with three requiring project labor agreements (PLAs).

Collectively, the hubs aim to produce more than 3 million tonnes of clean hydrogen per year, thereby achieving nearly one-third of the 2030 US clean hydrogen production goal. Together, the seven hydrogen hubs are expected to eliminate 25 million tonnes of carbon dioxide emissions from end uses each year—an amount roughly equivalent to the combined annual emissions of more than 5.5 million gasoline-powered cars. The nearly $50 billion investment is one of the largest investments in clean manufacturing and jobs in history.

Regional Clean Hydrogen Hubs
Mid-Atlantic Hydrogen Hub (Pennsylvania, Delaware, New Jersey)—The Mid-Atlantic Hydrogen Hub aims to unlock hydrogen-driven decarbonization in the Mid-Atlantic while repurposing historic oil infrastructure and using existing rights of way. It plans to develop renewable hydrogen production facilities from renewable and nuclear electricity using both established and innovative electrolyzer technologies, where it can help reduce costs and drive further technology adoption. As part of its labor and workforce commitments to the community, the Mid-Atlantic Hydrogen Hub plans to negotiate Project Labor Agreements for all projects and provide close to $14 million for regional Workforce Development Boards that will serve as partners for community college training and pre-apprenticeships. This Hydrogen Hub anticipates creating 20,800 direct jobs—14,400 in construction jobs and 6,400 permanent jobs.
(Amount: up to $750 million)

Appalachian Hydrogen Hub (West Virginia, Ohio, Pennsylvania)—The Appalachian Hydrogen Hub aims to leverage the region’s ample access to low-cost natural gas to produce low-cost clean hydrogen and permanently and safely store the associated carbon emissions. The strategic location of this hydrogen hub and the development of hydrogen pipelines, multiple hydrogen fueling stations, and permanent CO2 storage also have the potential to drive down the cost of hydrogen distribution and storage. The Appalachian Hydrogen Hub is anticipated to bring job opportunities to workers in coal communities and create more than 21,000 direct jobs—including more than 18,000 in construction and more than 3,000 permanent jobs.
(Amount: up to $925 million)

California Hydrogen Hub (California)—The California Hydrogen Hub will leverage the state’s leadership in clean energy technology to produce hydrogen exclusively from renewable energy and biomass. It will provide a blueprint for decarbonizing public transportation, heavy-duty trucking, and port operations—key emissions drivers in the state and sources of air pollution that are among the hardest to decarbonize. This hub has committed to requiring Project Labor Agreements for all projects connected to the hub, which will expand opportunities for disadvantaged communities and create an expected 220,000 direct jobs—130,000 in construction jobs and 90,000 permanent jobs.
(Amount: up to $1.2 billion)

Gulf Coast Hydrogen Hub (Texas)—The Gulf Coast Hydrogen Hub will be centered in the Houston region, the traditional energy capital of the United States. It aims to kickstart the clean hydrogen economy with plans for large-scale hydrogen production through both natural gas with carbon capture and renewables-powered electrolysis, leveraging the Gulf Coast region’s abundant renewable energy and natural gas supply to drive down the cost of hydrogen—a crucial step to achieving market liftoff. This hub is expected to create approximately 45,000 direct jobs—35,000 in construction jobs and 10,000 permanent jobs.
(Amount: up to $1.2 billion)

Heartland Hydrogen Hub (Minnesota, North Dakota, South Dakota)—The Heartland Hydrogen Hub aims to leverage the region’s abundant energy resources to help decarbonize the agricultural sector’s production of fertilizer, decrease the regional cost of clean hydrogen, and advance the use of clean hydrogen in electric generation and for cold climate space heating. It also plans to offer opportunities of equity ownership to tribal communities through an equity partnership and to local farmers and farmer co-ops through a private-sector partnership that will allow farmers to receive more competitive pricing for clean fertilizer. This hub is expected to create upward of 3,880 jobs—3,067 in construction jobs and 703 permanent jobs.
(Amount: up to $925 million)

Midwest Hydrogen Hub (Illinois, Indiana, Michigan)—Located in a key US industrial and transportation corridor, the Midwest Hydrogen Hub aims to enable decarbonization through strategic hydrogen uses including steel and glass production, power generation, refining, heavy-duty transportation, and sustainable aviation fuel. This hub is expected to produce hydrogen by leveraging diverse and abundant energy sources, including renewable energy, natural gas, and low-cost nuclear energy. The Midwest Hydrogen Hub is expected to create 13,600 jobs—12,100 in construction jobs and 1,500 permanent jobs.
(Amount: up to $1 billion)

Pacific Northwest Hydrogen Hub (Washington, Oregon, Montana)—The Pacific Northwest Hydrogen Hub plans to leverage the region’s abundant renewable resources to produce clean hydrogen exclusively from renewable sources. It’s anticipated widescale use of electrolyzers is expected to play a key role in driving down electrolyzer costs, making the technology more accessible to other producers and reducing the cost of hydrogen production. The Pacific Northwest Hydrogen Hub has committed to negotiating Project Labor Agreements for all projects over $1 million and investing in joint labor-management/state-registered apprenticeship programs. This hub is expected to create more than 10,000 direct jobs—8,050 in construction jobs and 350 permanent jobs.
(Amount: up to $1 billion)