(Reuters)--The U.S. Department of Energy has awarded up to $2.2 B to H₂ development centers in the Gulf Coast and Midwest to advance clean H₂ production, which is currently costly when produced using renewable energy. The Biden administration sees low-carbon H₂ as a key solution for reducing emissions in industries like aluminum, cement, steel and long-haul transportation.

Most H₂ is currently made from fossil fuels. The funds are part of the $7 B allocated through the 2021 bipartisan infrastructure law, aiming to develop H₂ from renewable sources, natural gas with carbon capture, and nuclear power. The Gulf Coast hub in Texas will receive up to $1.2 B, and the Midwest hub, spanning Illinois, Indiana, Iowa, and Michigan, will receive up to $1 B. These initiatives aim to help the U.S. produce 50 million metric tons of clean H₂ by 2050.

Source: Reuters