California will be the first state to receive federal funds under a program aimed at creating regional networks, or hubs, that produce hydrogen for various purposes.
The California Hydrogen Hub will receive an initial $30 million for its planning and design phase, with the state eventually receiving up to $1.2 billion for the project.
Driving the news: The program is part of the Biden administration’s efforts to combat climate change and transition to clean energy sources.
- The selected hubs, including projects in 16 states, aim to develop and produce hydrogen fuel as an alternative to fossil fuels.
- President Joe Biden has emphasized the importance of clean hydrogen in achieving net-zero greenhouse gas emissions in the US by 2050.
The big picture: These hydrogen hubs are expected to spur more than $40 billion in private investment and create jobs, including many union positions.
- The hubs will be based in California, Washington, Minnesota, Texas, Pennsylvania, West Virginia and Illinois, with multiple projects in some states.
- The funding for the hubs is significant progress as the Energy Department has gone through a competitive process to secure contracts and finance the projects.
- The California hub specifically aims to use hydrogen for decarbonizing the transportation sector and other hard-to-abate sectors.
- Hydrogen is considered a clean energy source as it can be produced without significant greenhouse gas emissions and generate power in fuel cells with minimal environmental impact.
