WASHINGTON D.C. – As part of Bidenomics as well as President Biden’s Investing in America Agenda the U.S. Department of Energy released today a Notice of Intent, which included a Request for Information, to invest up $1 billion in a Demand-Side Initiative to Support the Regional Clean Hydrogen Hubs. The H2Hubs Program, funded by President Biden’s Bipartisan Infrastructure Act, will form the basis of a nationwide clean hydrogen network that is vital for reducing emissions in some of our most energy-intensive industries, such as industrial and chemical processes, and heavy-duty transport. The announcement today will ensure that both end-users and producers in the H2Hubs program have the market security they need to unlock private investments and realize the full power of clean hydrogen during the initial years of production. Commercial-scale deployment of clean hydrogen is crucial to create good-paying employment and new economic opportunities for communities throughout the country, while also supporting our long-term carbon reduction objectives.
Jennifer M. Granholm, U.S. Secretary for Energy, said: “To ensure America is a global leader in clean energy technologies that are the future of the world requires us all to come together and confront shared challenges. This includes the lack of market confidence for clean hydrogen which too often slows progress.” “That’s the reason DOE is launching a new initiative that will help our private sector partner address bottlenecks, and other project obstacles — helping industry unlock this incredibly versatile resource and supporting the success of H2hubs on a long-term basis.”
Clean hydrogen, a flexible and versatile energy carrier, can be produced without carbon emissions or with very low levels. It offers significant economic benefits, and will create tens and thousands of good-paying new jobs in the United States, especially in energy and underserved communities. According to DOE’s Pathways to Commercial Liftoff report the growing hydrogen economy in America has the potential to create 100,000 new jobs, both direct and indirect. Clean hydrogen, by enabling diverse domestic clean energy pathways in multiple sectors of the American economy, will increase energy independence for the United States and accelerate the American Manufacturing Boom that has created more than 800,000 new jobs since President Biden’s election.
Developing a hydrogen-demand-side initiative is crucial to ensure the early commercial viability a H2Hub, given that demand for a new source of energy typically lags behind creation of a reliable supply. This new initiative is critical to the growth and sustainability the H2Hubs Program by providing revenue certainty for hydrogen producers. This will help to meet the needs and expectations of end-users who prefer to buy hydrogen under shorter-term contracts, but also need confidence that clean hydrogen will be available for a long time before they make critical investments.
The NOI will include a Request for Information regarding the design of the program. It will also help DOE refine its approach for providing demand-side assistance to the hubs in order to enter the clean hydrogen market. Additionally, it will identify the most effective way to engage and possibly involve private sector institutions for the organization, capitalization and execution the mandate of the implementing entity. The NOI is seeking public input to help design a demand-side mechanism for the H2Hubs Program. This includes information on the potential benefits and risks of the program, operating models and governance structures, as well as the capabilities of the implementing partners. The NOI also takes into account DOE’s dialogues with energy companies, clean energy investment firms and non-governmental organisations, as well as the public’s response to the Demand-side Request for Information, which was issued in spring of 2022, and DOE’s Pathways to Commercial Liftoff Report. DOE could consider other demand-side mechanisms in the future based on the H2Hubs’ demonstrated performance.
The H2Hubs, funded by the President’s Bipartisan infrastructure law and managed by DOE Office of Clean Energy Demonstrations with support from Office of Energy Efficiency and Renewable Energy are an important component of the Biden and Harris Administration’s commitment to invest heavily in America’s workforce and jumpstart local economies while creating good-paying, well-paying, and sustainable jobs.
The Biden-Harris administration will announce later this year the selection of 6 to 10 H2Hubs, for a total combined funding of up $7 billion from the federal government. This is one of the largest clean energy investments ever made and an important part of President Biden’s vision of a carbon-free grid in 2035 and zero emissions in 2050. The NOI outlines a mechanism that will connect H2Hubs with prospective buyers, providing a durable demand for Hubs and enough customers to support President Biden’s approach of building a strong hydrogen economy across the government.
Click here to read the complete Notice of Intent & Request for Information .
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