California Hydrogen Hub | Arches

electee name: Alliance for Renewable Clean Hydrogen Energy Systems (ARCHES) 

Location: California  

Federal Cost Share: Up to $1.2 billion

Prime Contractor: Alliance for Renewable Clean Hydrogen Energy Systems (ARCHES) LLC

Summary: The California Hydrogen Hub spans across the state of California and will leverage the state’s leadership in clean energy technology to produce hydrogen exclusively from renewable energy and biomass. The California Hydrogen Hub will provide a blueprint for decarbonizing public transportation, heavy duty trucking, and port operations—key emissions drivers in the state and sources of air pollution that are among the hardest to decarbonize. In particular, the California Hydrogen Hub will introduce clean hydrogen to heavy duty transport through cargo handling equipment and drayage to support the eventual conversion of maritime equipment at ports and prepare the port for the potential export of hydrogen.

The California Hydrogen Hub aims to reduce carbon emissions by 2 million metric tons per year—roughly equivalent to the annual emissions of 445,000 gasoline-powered cars. The expansion of hydrogen fuel cell vehicles in heavy duty transportation will not only drive improvements in air quality along high pollution interstate transportation corridors but will facilitate greater connectivity and expansion of a clean West Coast freight network that links to the Pacific Northwest Hydrogen Hub. The California Hydrogen Hub will launch the use of hydrogen for power generation, advancing energy security and more resilient systems through a partnership with the Rincon Band of Luiseño Indians. This partnership will use hydrogen to provide backup power to community well water pumps to ensure clean drinking water during power outages. The impact of the California Hydrogen Hub is amplified by the state of California’s strong policy and regulatory support for hydrogen including permitting, and, potentially, production and use incentives.  

To ensure the California region’s communities are engaged and have access to the benefits of a clean hydrogen economy, this Hydrogen Hub plans to incorporate robust governance mechanisms, including labor, tribal, and environmental representation on its governing board; strong state requirements for environmental justice; independent monitoring of CBP implementation; and a CBP scorecard with monetary penalties for noncompliance.

This H2Hub includes the California State Building & Construction Trades Council as a founding member and has committed to requiring Project Labor Agreements for all projects connected to the Hub. The H2Hub will also partner with local and minority-owned businesses, minority-serving institutions, and organizations targeting workers facing employment barriers to ensure economic benefits and quality jobs are available to underrepresented groups.

This H2Hub anticipates creating 220,000 direct jobs—130,000 in construction jobs and 90,000 permanent jobs. In addition to economic benefits, this H2Hub will also provide local benefits to communities including reducing harmful air pollution that will result in significant health-related savings each year at full buildout. 

Hydrogen America