The U.S. Department of Energy (DOE) signed a $12.6 billion agreement with the state of California to create a “Hydrogen Hub.”
The DOE will provide $1.2 billion to the Alliance for Renewable Clean Hydrogen Energy Systems (ARCHES), which will “facilitate a network of clean, renewable hydrogen production sites to cut fossil fuel use throughout California,” according to a press release, adding that the project’s goal is “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 Governor Gavin Newsom (D) said that through the project, 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,” he said. “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.”
Senator Alex Padilla (D-CA) stated that 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.”
According to the DOE, green hydrogen energy costs about $5 per kilogram.
The hydrogen hubs were announced in 2023 as a means of advancing Joe Biden’s “vision of a strong clean energy economy that strengthens energy security, bolsters domestic manufacturing, creates healthier communities, and delivers new jobs and economic opportunities across the nation,” according to a White House statement.
The project aims to achieve “nearly one-third of the 2030 U.S. clean hydrogen production goal” through the production of more than “three million metric tons of clean hydrogen per year.”
