Biden Administration Launches $9.5 Billion Clean Hydrogen Program

The Biden administration on Feb. 15 announced the launch of $9.5 billion worth of initiatives to foster clean hydrogen development pursuant to the 2021 Infrastructure Investment and Jobs Act, and the “buy clean task force” to harness the federal government’s purchasing power to support domestically-manufactured low-carbon materials. The government intends to advance hydrogen application in industrial sectors to reduce emissions and the targeted investments are expected to reduce costs, develop novel technology, and create new jobs.

The hydrogen initiatives include:

• $8 billion for Regional Clean Hydrogen Hubs to expand clean hydrogen applications;
• $1 billion for a Clean Hydrogen Electrolysis Program to cut costs of hydrogen produced from carbon-free electricity;
• $500 million for Clean Hydrogen Manufacturing and Recycling Initiatives.

The administration believes that carbon capture, utilization, and sequestration (CCUS) is an important tool to achieve the climate goals and therefore the Council on Environmental Quality has issued new guidance building on a June 2021 report on the technology. The initiative directs for transparent environmental reviews along with environmental justice to protect underprivileged communities from cumulative impacts. The guidance also seeks public engagement and consultations and to create job opportunities and training programs.

Provisions in the 2021 law will further foster CCUS projects as agencies prepare to implement more than $12 billion in investments. Furthermore, the Environmental Protection Agency will revise its Greenhouse Gas Reporting Program to increase CCUS transparency. The funding support is expected to prepare diverse and skilled engineers and scientists for carbon management roles. The CCUS projects are collaboratively reviewed by the Federal Permitting Improvement Steering Council and its member agencies. Also, geologic sequestration on federally managed lands is being safeguarded by the Department of the Interior, while new regulations are being developed for geologic sequestration on the outer continental shelf, as required by the 2021 law.

Also, the U.S. Energy Department will invest $5 million for university training and research projects. The department has also announced various programs to support the clean hydrogen initiative. The agency will offer an $8 billion grant to set up regional clean hydrogen and develop a network of hydrogen producers, potential consumers, and connected infrastructure. The funding is expected to increase the production, processing, storage, and end-use of clean hydrogen. The department will also invest $1 billion for a clean hydrogen electrolysis program for clean hydrogen production from carbon neural power sources like wind, nuclear, and solar. Another $500 million funding is allocated for clean hydrogen manufacturing and recycling R&D activities. The agency will also support the manufacturing of clean hydrogen equipment through the 2021 Infrastructure Investment and Jobs Act.