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Obsidian Pacific NW Hydrogen Hub seeks federal funding as part of national clean H2 network

The U.S. Department of Energy’s (DOE) deadline for concept papers from possible projects around the country seeking to be part of a new national clean H2 network. Obsidian Pacific NW Hydrogen Hub submitted a plan to DOE for support of a H2 network in the Northwest powered entirely by renewable electricity.

DOE is administering $8 B from the Bipartisan Infrastructure Bill designed to scale-up production of low-carbon (clean) H2 by funding what they are calling H2 hubs—infrastructure to make, store, transport and use H2. The DOE expects H2 hubs to form the foundation of a national clean H2 network that will contribute substantially to decarbonizing multiple sectors of the economy. The Obsidian Pacific NW Hydrogen Hub will leverage private funding with $700 MM of DOE money for its multi-billion-dollar project.

“The Obsidian Pacific NW Hydrogen Hub is proud to work with our partners to establish a reliable, cost-efficient, renewable energy source in the region,” said David Brown, senior principal and co-founder of Obsidian Renewables. “Projects inspired by the hub will create thousands of good-paying, green jobs that will directly benefit disadvantaged communities throughout the region by diversifying local economies, reducing pollution, spurring training and apprenticeship programs and building new career opportunities in Washington and Oregon.”

The complete plan envisions production, storage, transportation and consumption of H2. H2 is a versatile industrial feedstock and fuel that the H2 hub will supply to a wide array of industries such as agriculture, data centers, hospitals, ports, power plants and domestic fertilizer producers. Anchor sites in Moses Lake, Washington and Hermiston, Oregon, will use power from new renewable wind and solar power plants to split water in a process called electrolysis. These renewable energy sources will connect to a 400-megawatt electrolyzer capable of producing 175 metric tpd H2 at each anchor site.

The Obsidian Pacific NW Hydrogen Hub also includes a new H2 pipeline system to store, collect and distribute H2 to consumers across eastern Oregon and Washington, providing the lowest cost source of H2 across much of the Northwest.

"Replacing the fossil energy system is a massive endeavor,” said Ken Dragoon, Obsidian Renewables’ director of hydrogen development. “Our project produces hydrogen from local wind and solar resources that can’t otherwise make it onto the power grid, enabling them to do their part in decarbonizing fertilizer manufacturing, power production and transportation.”

The DOE plans to select six to 10 H2 hubs to receive between $400 MM and $1.25 B to connect large-scale clean H2 production to consumers. Applications will be evaluated based on several key factors including technical merit, financial viability and community benefits. DOE is expected to provide feedback on project concepts in December with final funding awards anticipated in Fall of 2023.