$1B Federal Grant Cut Hits Pacific Northwest Hydrogen Projects, Threatening Clean Energy Momentum
Clean hydrogen development in the Pacific Northwest faces a major setback after the Trump administration announced the termination of a $1 billion grant for the region’s Hydrogen Hub, part of a broader $7.6 billion cut in federal clean energy funding this week.
The cancellation jeopardizes key initiatives across Washington, Oregon, and Montana, designed to accelerate clean hydrogen infrastructure and decarbonize heavy industry, shipping, and aviation. Projects supported by the hub include hydrogen production facilities near Richland and Ferndale, Washington, a hydrogen fuelling network along the I-5 corridor, and Oregon projects converting gaseous hydrogen into liquid hydrogen for heavy-duty trucks and mining equipment.
“It’s a major and significant setback,” said Chris Green, President of the Pacific Northwest Hydrogen Association. “This is definitely a gut punch for clean hydrogen innovation in our region.”
The funding cut has sparked criticism from state leaders, who argue that the decision prioritizes political considerations over the urgent need for a low-carbon energy future.
“It is outrageous that this administration is using funding decisions to undermine critical clean energy projects,” said Washington Governor Bob Ferguson, noting ongoing efforts with the Attorney General’s Office to challenge the cancellation. Oregon Governor Tina Kotek called the move “the latest disappointment in the President’s history of putting political posturing ahead of our energy future.”
Despite the loss of federal support, some projects in the Pacific Northwest hydrogen ecosystem may continue through private investment or alternative funding sources, though others may face delays.
“While certain projects may forge ahead, others will have to pause or seek alternative financing,” added Green. “The region’s ambitious plan to establish itself as a leader in hydrogen energy is under significant pressure.”
The Pacific Northwest Hydrogen Hub had been a cornerstone initiative aimed at advancing the clean hydrogen economyin the U.S., highlighting the potential of green hydrogen to reduce industrial emissions and promote sustainable energy solutions.
