16 states in the U.S.A awarded $7 billion to develop regional hydrogen hubs
The Biden administration has announced that seven proposed "hydrogen hubs" in 16 states will share $7 billion in federal grants to jump-start the emerging industry, which officials hope will clean up some of the biggest carbon-emitting industrial sectors, Reuters reported.
The regional hubs are networks of hydrogen producers and consumers that will be linked with new and existing infrastructure. The Biden administration wants to scale up clean hydrogen output to 10 million metric tons of the fuel by 2030 and 50 million tons by 2050, a fivefold increase from today.
The following is a list of the winning hydrogen hub proposals:
MID-ATLANTIC HUB: $750 million awarded to Pennsylvania, Delaware, New Jersey will help unlock hydrogen-driven decarbonization in the Mid-Atlantic and repurpose historic oil infrastructure. The project will develop renewable hydrogen production facilities powered by renewable energy and nuclear electricity. Partners include Air Liquide, DuPont (DD.N), Enbridge (ENB.TO) and others. The project will help create thousand jobs: 14,400 construction jobs and 6,400 permanent jobs.
APPALACHIAN HUB: West Virginia, Ohio, Pennsylvania will get $925 million. This hub will seek to leverage the region’s ample access to low-cost natural gas to produce low-cost clean hydrogen and permanently and safely store the associated carbon emissions. Partners include EQT Corp (EQT.N) and GTI Energy (GTR.AX). Job creation expectations: 18,000 construction jobs and more than 3,000 permanent jobs.
CALIFORNIA HUB: California was awarded $1.2 billion. With the largest price tag, the California hub will leverage the state's existing clean energy technology to produce hydrogen exclusively from renewable energy and biomass. The administration hopes it will provide a blueprint for decarbonizing public transportation, heavy-duty trucking, and port operations. Partners include Chevron (CVX.N), Bosch, Microsoft (MSFT.O) and others. Job creation expectations: 130,000 construction jobs and 90,000 permanent jobs.
GULF COAST HUB: Texas will get $1.2 billion. Centered in Houston, the energy capital of the U.S., the hub plans for large-scale hydrogen production through natural gas with carbon capture and renewables-powered electrolysis. The hub is led by major industry players, including Exxon Mobil (XOM.N), Chevron Corp, Air Liquide, Mitsubishi Power Americas, Orsted, AES Corp (AES.N) and Sempra Infrastructure. Amazon (AMZN.O) is among the hub's expected end users. Job creation expectations: 35,000 construction jobs and 10,000 permanent jobs.
HEARTLAND HUB: Minnesota, North Dakota and South Dakota, awarded $925 million. The hub seeks to leverage the region's energy resources to help decarbonize the agricultural sector's production of fertilizer, decrease the regional cost of clean hydrogen and advance the use of clean hydrogen in electric generation and for cold climate space heating. Partners include Xcel Energy (XEL.O), Marathon Petroleum Corp (MPC.N) and TC Energy (TRP.TO). Job creation expectations: 3,067 construction jobs and 703 permanent jobs.
MIDWEST HUB: Illinois, Indiana and Michigan, awarded $1 billion. Centered in the U.S. industrial and transportation corridor, the hub will power steel and glass production, power generation, refining, heavy-duty transportation and sustainable aviation fuel. Partners include Air Liquide, Arcellor Mittal, BP (BP.L) and others. Job creation expectations: 12,100 construction jobs and 1,500 permanent jobs.