Biden Administration Announces $7 Billion Funding Opportunity to Kick-Start U.S. Clean Hydrogen Economy

The U.S. Energy Department on Sept. 22 launched a $7 billion program to build regional hydrogen hubs, or H2Hubs throughout the U.S. The H2Hubs, coupled with a grander $8 billion hydrogen hub package sponsored through the Infrastructure Investment and Jobs Act, or IIJA will be a key driver in aiding groups across the U.S. make the most of clean energy investments, high remunerative jobs, and enhanced energy security.

The coming together and sharing of ideas and innovation among the U.S. smartest scientists, technologists, community co-ordinators and businesses with regards to the national hydrogen policy will assist the country in accelerating the growth and distribution of technologies to comprehend the complete capability of clean hydrogen energy in the impending years.

Hydrogen is a multipurpose fuel that can be created from clean, varied, and domestic energy assets, including wind, solar, and nuclear energy, or by employing methane while capturing subsequent carbon to lessen emissions. Its distinctive attributes make it a powerful alternative to decarbonize energy-intensive heavy industry. Hydrogen’s affability makes it an essential part of President Biden’s plan to attain a carbon neutral grid by 2035 and net-zero emissions by 2050.

Projects funded by the IIJA are projected to incorporate a community benefits plan to support important community and labour engagement, invest in the U.S. workforce, enhance diversity, equity, inclusion, and accessibility, and continue the President’s aim that 40 percent of the total benefits of particular federal investments reach disadvantaged communities.

The H2Hubs are up there with one of the highest financial investments in the department’s record. Financed by the IIJA and managed by the U.S. Energy Department’s Office of Clean Energy Demonstrations with backing from the Office of Energy Efficiency and Renewable Energy, the hubs are an essential part of the government’s pledge to invest in the U.S. workforce, kickstart local economic development, and produce decent-paying union jobs, in an attempt to create a clean energy economy, expand energy security, and confront climate change.

For this preliminary financing opportunity announcement, the U.S. Energy Department is planning to choose six to ten hubs for a collective total of up to $7 billion in federal financing. Concept papers are expected by November 7, 2022, and complete applications are due by April 7, 2023.  Moreover, the department has also published a draft of the National Clean Hydrogen Strategy and roadmap for public comment. The roadmap offers a complete outline of the capability for hydrogen production, transport, storage, and use in the U.S., and summarises how clean hydrogen can contribute to national decarbonization and economic expansion goals.