US Government Announces $1bn Support for Hydrogen Programme

The US Government plans to invest $1 billion in a demand-side initiative for the H2Hubs programme to boost regional clean hydrogen hubs. How will this provide support to energy-intensive sectors?

For the H2Hubs programme, the US Department of Energy (DOE) has released a Notice of Intent (NOI), which includes a Request for Information.

It is said that H2Hubs will establish a clean hydrogen network to reduce emissions in energy-intensive sectors, such as heavy-duty transport and the industrial sector.

In addition, it aims to connect the H2Hubs to prospective purchasers. This is hoped to provide sufficient demand and customers for the hubs while supporting the US Government’s wider targets of being a leader in the hydrogen economy.

This initiative will help to boost confidence among end users

The hydrogen hubs could help to establish well-paid jobs for locals and provide economic opportunities in communities whilst also contributing to the country’s goal of a carbon-free grid by 2035, and net zero by 2050.

In addition, it will help to boost confidence among end users who prefer to purchase hydrogen on shorter-term contracts, and those who want to know the availability of hydrogen before making long-term investment decisions.

US Secretary for Energy, Jennifer Granholm, explained that placing a focus on hydrogen is key in the US making sure it is trailblazing in renewable energy: “Ensuring America is the global leader in the next generation of clean energy technologies requires all of us – government and industry – coming together to confront shared challenges, particularly lack of market certainty for clean hydrogen that too often delays progress.”

Continuing Jennifer said: “That’s why DOE is setting up a new initiative to help our private sector partners address bottlenecks and other project impediments – helping industry unlock the full potential of this incredibly versatile energy resource and supporting the long-term success of the H2Hubs.”

The DOE will be focusing on scaling up investments

This initiative comes after the DOE recently revealed its National Clean Hydrogen Strategy and Roadmap, which outlined the opportunity to produce 50 million tonnes of hydrogen per year by 2050.

The DOE outlined three key strategies. The first one of these is that it is targeting strategic and high-impact uses of hydrogen.

To do this the country will work to ensure that hydrogen is utilised in the highest benefit applications, such as industry, heavy-duty transportation, and energy storage.

Following this, the second is reducing the cost of hydrogen by focusing on innovation and scaling private sector investments and developing the supply chain.

Finally, DOE will be focusing on regional networks with production and end-use in close proximity to enable maximum benefit from infrastructure investment, drive scale, and facilitate market lift-off.

Going forward, the DOE later this year will announce the selection of six to ten Regional Clean Hydrogen Hubs for a combined $7 billion in federal funding.