The U.S. Department of Energy (DOE) and ARCHES announced the official signing of a landmark $12.6-B agreement to build a clean, renewable H₂ hub in California, including the up to $1.2 B in federal funding that was announced last year when California was selected as a national hub. ARCHES is the first of seven H₂ hubs throughout the country to officially sign their agreement with the DOE.

The ARCHES hub will facilitate a network of clean, renewable H₂ production sites to cut fossil fuel use throughout California, with the ultimate goal of decarbonizing public transportation, heavy duty trucking, and port operations by 2 MM metric tpy – roughly the equivalent to annual emissions of 445,000 gasoline-fueled cars.

“California is revolutionizing how a major world economy can clean up its biggest industries. We’re going to use clean, renewable H₂ to power our ports and public transportation – getting people and goods where they need to go, just without the local air pollution. Thanks to the Biden-Harris Administration, California is excited to pioneer this world-leading initiative that’ll show other states and countries what’s possible when you prioritize clean energy and public health,” said Governor Gavin Newsom.

Just last week, California led the nation in multiple H₂-powered transportation innovations, with the world’s first entirely H₂-powered ferry in San Francisco Bay and a successful 523-mile H₂-electric flight.

WHY IT’S IMPORTANT

• Cuts up to 2 MM metric tpy of carbon emissions – equivalent to the pollution of 445,000 gasoline-powered cars annually.
• Creates an estimated 220,000 new jobs, including 130,000 in construction and 90,000 permanent jobs.
• Estimated $2.95 Bpy in economic value from better health and health cost savings.
• At least 40% of the benefits from projects will flow to disadvantaged communities through community directed investments, workforce training, and family supporting jobs.

WHAT’S GETTING DECARBONIZED

• 3 large ports with over 200 pieces of cargo-handling equipment
• 5,000+ fuel-cell-electric trucks
• 1,000+ fuel-cell-electric buses
• 1 marine vessel
• Turbines and stationary fuel cells
• Develop infrastructure for H₂ transport and use, including 60 heavy-duty fueling stations and 165 miles of open-access pipelines.

HOW WE GOT HERE

• California released the world’s first plan to achieve net-zero carbon pollution, which will utilize H₂ to cut pollution and ramp up clean energy.
• Governor Newsom directed GO-Biz to develop California’s H₂ Market Development Strategy, employing an all-of-government approach to building up California’s clean, renewable H₂
• California submitted an application in April of 2023 through the Alliance for Renewable Clean H₂ Energy Systems (ARCHES), a statewide public-private partnership to build the framework for California’s renewable, clean H₂
• ARCHES is one of thousands of infrastructure initiatives building California’s future. Find more projects in your community at build.ca.gov.

WHAT ARCHES LEADERS ARE SAYING

“I was proud to help secure $1.2 B of federal investments through the Bipartisan Infrastructure Law to build a H₂ hub right here in California,” said Senator Alex Padilla (D-Calif.). “The path to achieving California’s ambitious clean energy goals runs through ARCHES, and I’m excited to see the California H₂ hub kickoff with this initial round of funding. California is leading the nation with the first H₂ hub to sign a cooperative agreement, and we will continue to lead by decarbonizing goods movement, the energy sector, and heavy industry.”

“The Department of Energy’s announcement to fund ARCHES is a monumental step forward in the state’s efforts to achieve its air quality, climate and energy goals, while improving the health and wellbeing of Californians and creating new green jobs across the state,” said Angelina Galiteva, CEO, ARCHES. “We are grateful to the DOE for its commitment to building a sustainable H₂ ecosystem and marketplace and look forward to working with our project partners, stakeholders and diverse communities throughout the State to make this project a success.”

“Formally signing this Cooperative Agreement with the Department of Energy to develop California’s Renewable H₂ Hub is a pivotal milestone on California’s march to carbon neutrality—economy wide,” said GO-Biz Director and Senior Advisor to Governor Gavin Newsom and founding ARCHES Board Member Dee Dee Myers. “We are eager to put Californians to work building the future—a future powered by clean, renewable H₂ that benefits all California’s residents.”