The Obsidian Pacific Northwest Hydrogen Hub was encouraged by the U.S. Department of Energy (DOE) to continue its bid for federal H₂ hub funding. The plan supports the development of a H₂ network in the Northwest powered entirely by renewable electricity.

The DOE is administering $8 B from the Bipartisan Infrastructure Bill designed to scale-up production of low-carbon 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.

DOE reviewed nearly 100 concept papers for federal funding. As one of the 33 projects encouraged to continue with the funding process, the Obsidian Pacific NW Hydrogen hub will now submit a full funding application in April.

“The Obsidian Pacific NW Hydrogen Hub is proud to receive an encourage decision by the DOE,” said David Brown, senior principal and co-founder of Obsidian Renewables. “We are grateful for the labor, business and community partnerships we have built throughout the region that help make the Pacific NW Hydrogen Hub a competitive project.”

The complete plan envisions H₂ production, storage, transportation and consumption. H₂ is a versatile industrial feedstock and fuel that the H₂ hub will supply to various 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 of 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.

"Building out a hydrogen energy network will be a critical piece of our decarbonization goals,” said Ken Dragoon, Obsidian Renewables’ director of H₂ development. “Our plan leverages the region's deep commitment to clean energy to build a renewable hydrogen network to help us meet our decarbonization goals.”

The DOE plans to select 6–10 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 critical factors, including technical merit, financial viability and community benefits. DOE is expected to make final funding awards in the Fall of 2023.