DOE Launches First-ever Hydrogen Hub with $12.6 Billion Deal

July 19, 2024

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by Clare Fieseler (Political Pro Energywire) The California hub known as ARCHES plans to produce "clean" hydrogen at 10 sites for energy projects around the state. -- The Department of Energy signed a $12.6 billion agreement Wednesday with a California hydrogen hub, the first deal of its kind since the bipartisan infrastructure law was signed three years ago.

The California hub, known as ARCHES, is the first of seven hubs — which were selected by DOE in October — to ink a deal with the Biden administration. With $7 billion from the law, the administration is aiming to build out hubs that demonstrate the production and transport of “clean” hydrogen, which is not currently produced at scale in the U.S.

“California is leading the nation with the first hydrogen hub to sign a cooperative agreement, and we will continue to lead by decarbonizing goods movement, the energy sector, and heavy industry," said Sen. Alex Padilla (D-Calif.) in a statement announcing the award. "The path to achieving California’s ambitious clean energy goals runs through ARCHES, and I’m excited to see the California Hydrogen Hub kickoff with this initial round of funding." READ MORE

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California launches world-leading Hydrogen Hub (California Governor's Office on Business and Economic Development)
DOE launches first-ever hydrogen hub with $12.6 billion deal (E&E News Energywire)

Excerpt from California Governor's Office on Business and Economic Development: With agreement signed and first round of funding secured, California is the first state to officially launch a Hydrogen Hub, an initiative to accelerate the development and deployment of clean, renewable hydrogen projects – cutting pollution and expanding clean energy.

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

The ARCHES hub will facilitate a network of clean, renewable hydrogen 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 million metric tons per year – 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 hydrogen 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.”

Governor Gavin Newsom

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

Awardee Fact Sheet

Why it’s important

Cuts up to 2 million metric tons of carbon emissions every year – 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 billion per year 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 hydrogen 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 hydrogen to cut pollution and ramp up clean energy;
Governor Newsom directed GO-Biz to develop California’s Hydrogen Market Development Strategy, employing an all-of-government approach to building up California’s clean, renewable hydrogen market;
California submitted an application in April of 2023 through the Alliance for Renewable Clean Hydrogen Energy Systems (ARCHES), a statewide public-private partnership to build the framework for California’s renewable, clean hydrogen hub;
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 billion of federal investments through the Bipartisan Infrastructure Law to build a hydrogen 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 Hydrogen Hub kickoff with this initial round of funding. California is leading the nation with the first hydrogen 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 hydrogen 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 Hydrogen 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 hydrogen that benefits all California’s residents.”

More details on next step here

About GO-Biz
The Governor’s Office of Business and Economic Development (GO-Biz) serves as the State of California’s leader for job growth and economic development efforts. GO-Biz offers a range of services to business owners including: attraction, retention and expansion services, site selection, permit streamlining, clearing of regulatory hurdles, small business assistance, international trade development, assistance with state government, and much more. For more information visit the GO-Biz website. READ MORE