As part of President Biden’s Investing in America agenda, a key pillar of Bidenomics, the U.S. Department of Energy (DOE) announced $7 B to launch seven regional clean H₂ hubs (H₂Hubs) across the nation and accelerate the commercial-scale deployment of low-cost, clean H₂—a valuable energy product that can be produced with zero or near-zero carbon emissions and is crucial to meeting the president’s climate and energy security goals. This historic milestone is part of the third installment of the Investing in America tour, during which President Biden and Secretary Granholm will travel to Philadelphia, Pennsylvania to announce this unprecedented investment in American manufacturing and jobs.

Funded by President Biden’s Bipartisan Infrastructure Law, the seven H₂Hubs will kickstart a national network of clean H₂ producers, consumers, and connective infrastructure while supporting the production, storage, delivery and end-use of clean H₂. The H₂Hubs are expected to collectively produce 3 MM metric tpy of H₂, reaching nearly a third of the 2030 U.S. production target and lowering emissions from hard-to-decarbonize industrial sectors that represent 30 of total U.S. carbon emissions. Together, they will also reduce 25 MM metric tpy of carbon dioxide (CO₂) emissions from end-uses—an amount roughly equivalent to combined annual emissions of 5.5-MM gasoline-powered cars—and create and retain tens of thousands of good-paying jobs across the country while supporting healthier communities.

The announcement is one of the largest investments in clean manufacturing and jobs in history. This transformative Federal investment will be matched by recipients to leverage a total of nearly $50 B to strengthen local economies, create and maintain high-quality jobs—especially those that support worker organizing and collective bargaining—and slash harmful emissions that jeopardize public health and pollute local ecosystems. In addition to positioning America to be a global leader in emerging clean energy industries, the H₂Hubs will implement comprehensive local benefits and workforce proposals to support the President’s vision of an equitable and inclusive clean energy future.

“Unlocking the full potential of H₂—a versatile fuel that can be made from almost any energy resource in virtually every part of the country—is crucial to achieving President Biden’s goal of American industry powered by American clean energy, ensuring less volatility and more affordable energy options for American families and businesses,” said U.S. Secretary of Energy Jennifer M. Granholm. “With this historic investment, the Biden-Harris Administration is laying the foundation for a new, American-led industry that will propel the global clean energy transition while creating high quality jobs and delivering healthier communities in every pocket of the nation.”  

Clean H₂ is a flexible energy carrier that can be produced from a diverse mix of domestic clean energy resources, including renewables, nuclear and fossil resources with safe and responsible carbon capture. Its unique characteristics will allow the H₂Hubs to substantially reduce harmful emissions from some of the most energy-intensive sectors of the economy, such as chemical and industrial processes and heavy-duty transportation, while creating new economic opportunities across the country. It could also be used as a form of long-duration energy storage to support the expansion of renewable power. By enabling the development of diverse, domestic clean energy pathways across multiple sectors of the economy, clean H₂ will strengthen American energy independence and accelerate the American manufacturing boom that has already created more than 815,000 jobs since President Biden took office. Selected projects for negotiation include:

• Appalachian H₂ hub (Appalachian regional clean H₂ Hub (ARCH2); West Virginia, Ohio, Pennsylvania) — The Appalachian H₂ Hub will leverage the region’s ample access to low-cost natural gas to produce low-cost clean H₂ and permanently store the associated carbon emissions. The strategic location of this H₂Hub and the development of H₂ pipelines, multiple H₂ fueling stations, and permanent CO₂ storage also have the potential to drive down the cost of H₂ distribution and storage. The Appalachian H₂ Hub is anticipated to bring quality 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, helping ensure the Appalachian community benefits from the development and operation of the Hub. (Amount: up to $925 MM)
• California H₂ hub (Alliance for Renewable Clean H₂ Energy Systems (ARCHES); California) — The California H₂ Hub will leverage the Golden State’s leadership in clean energy technology to produce H₂ 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 H₂Hub 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 B)
• Gulf Coast H₂ hub (HyVelocity H2Hub; Texas) — The Gulf Coast H₂ hub will be centered in the Houston region, the traditional energy capital of the U.S. It will help kickstart the clean H₂ economy with its plans for large-scale H₂ production using 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 H₂—a crucial step to achieving market liftoff. This H2Hub is expected to create approximately 45,000 direct jobs—35,000 in construction jobs and 10,000 permanent jobs. (Amount: up to $1.2 B)
• Heartland H₂ hub (Minnesota, North Dakota, South Dakota) — The Heartland H₂ hub will leverage the region’s abundant energy resources to help decarbonize the agricultural sector’s production of fertilizer, decrease the regional cost of clean H₂, and advance the use of clean H₂ in electric generation and for cold climate space heating. It also plans to offer unique 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 local farmers to receive more competitive pricing for clean fertilizer. The Heartland H₂ hub anticipates creating upwards of 3,880 direct jobs–3,067 in construction jobs and 703 permanent jobs. (Amount: up to $925 MM)
• Mid-Atlantic H₂ hub (Mid-Atlantic clean H₂ hub (MACH2); Pennsylvania, Delaware, New Jersey) — The Mid-Atlantic H₂ hub will help unlock H₂-driven decarbonization in the Mid-Atlantic while repurposing historic oil infrastructure and using existing rights-of-way. It plans to develop renewable H₂ 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 H₂ hub plans to negotiate Project Labor Agreements for all projects and provide close to $14 MM for regional Workforce Development Boards that will serve as partners for community college training and pre-apprenticeships. This H₂Hub anticipates creating 20,800 direct jobs—14,400 in construction jobs and 6,400 permanent jobs. (Amount: up to $750 MM)
• Midwest H₂ hub (Midwest Alliance for clean H₂ (MachH₂); Illinois, Indiana, Michigan) — Located in a key U.S. industrial and transportation corridor, the Midwest H₂ hub will enable decarbonization through strategic H₂ uses including steel and glass production, power generation, refining, heavy-duty transportation, and sustainable aviation fuel. This H₂Hub plans to produce H₂ by leveraging diverse and abundant energy sources, including renewable energy, natural gas, and low-cost nuclear energy. The Midwest H₂ Hub anticipates creating 13,600 direct jobs—12,100 in construction jobs and 1,500 permanent jobs. (Amount: up to $1 B)
• Pacific Northwest H₂ hub (PNW H₂; Washington, Oregon, Montana) — The Pacific Northwest H₂ hub plans to leverage the region’s abundant renewable resources to produce clean H₂ exclusively via electrolysis. It’s anticipated widescale use of electrolyzers will play a key role in driving down electrolyzer costs, making the technology more accessible to other producers, and reducing the cost of H₂ The Pacific Northwest H₂ hub has committed to negotiating Project Labor Agreements for all projects over $1 MM and investing in joint labor-management/state-registered apprenticeship programs. This H₂Hub is expected to create more than 10,000 direct jobs—8,050 in construction jobs and 350 permanent jobs. (Amount: up to $1 B)

The DOE’s historic $7 B of Federal investment in clean H₂ will be met with the H₂Hubs selectees’ cost share of more than $40 B. Together with tax incentives in the President’s historic Inflation Reduction Act and ongoing research and development efforts across the Federal government, today’s announcement will help drive private sector investment in clean H₂, setting the nation on a course to hit critical long-term decarbonization objectives.

As part of the President’s commitments to invest in America’s workforce, support high-quality American jobs, advance environmental and energy justice, and strengthen tribal energy sovereignty, each H₂Hub was required to develop and ultimately implement a comprehensive Community Benefits Plan (CBP)—which will be informed by early and meaningful community and labor engagements in each region. 

The Biden-Harris Administration is dedicated to ensuring the benefits of the clean energy transition flow directly to impacted communities—a stark contrast from the legacy of underinvestment and environmental degradation resulting from the development of past energy infrastructure projects. President Biden’s Justice40 Initiative aims to ensure that 40 percent of the overall benefits of certain Federal investments—including from the H₂Hubs—positively impact disadvantaged communities that are marginalized by underinvestment and overburdened by pollution.   

The Administration continues to work in partnership with frontline communities and industries to build a clean energy economy that is equitable and responsive to many of the concerns raised by Environmental Justice communities. As part of those efforts, DOE will co-host virtual community-level briefings for each H₂Hub to provide local communities with a forum to learn about and provide input on the selected projects.

To ensure the long-term success of the clean H₂ economy and support the H₂Hubs’ development, DOE issued a Request for Proposals in September 2023 to solicit a U.S. entity to execute a demand-side initiative. This demand-side initiative seeks to ensure that both producers and end users in the H₂Hubs have the market certainty they need during the early years of clean H₂ production to unlock critical private investment.

DOE’s Office of Clean Energy Demonstrations (OCED) manages the H₂Hubs program and will provide project management oversight for the projects selected to produce clean H₂; demonstrate end uses; generate training opportunities and good-paying, high-quality jobs; reduce emissions and pollution; and ensure tangible benefits flow to local hub communities.  

Selection for award negotiations is not a commitment by DOE to issue an award or provide funding. Before funding is issued, DOE and the applicants will undergo a negotiation process, and DOE may cancel negotiations and rescind the selection for any reason during that time.