The U.S. Department of Energy (DOE) released new details on selection criteria for an $8 billion hydrogen hub program.
The federal government is funding regional hydrogen hubs to help decarbonize multiple sectors of the economy and push the U.S. closer to 2050 net-zero emissions. The money comes from the infrastructure law passed in 2021.
The law appropriates $8 billion over five years to support hubs that demonstrate the production, processing, delivery, storage and end us of clean hydrogen.
Hubs would be sited in different regions of the U.S. The DOE expects production technologies integrated into the hubs to be capable of producing hydrogen at least 50 to 100 metric tons (MT) per day.
Energy and environmental justice, labor and community engagement, consent-based siting, quality jobs, and inclusive workforce development would be considered when choosing funding recipients, DOE said.
The department said it would require funded projects to track and report metrics related to these topics, as well as the magnitude of hydrogen produced, transported, and uses.
To the maximum extent possible, the DOE would choose projects based on several objectives:
-At least one hub would produce hydrogen from fossil fuels, one hub from renewable energy, and one hub from nuclear energy.
-At least one hub would demonstrate the end-use of clean hydrogen in the electric power generation sector, one in the industrial sector, one in the residential and commercial heating sector and one in transportation.
-Each hub would be located in a different region of the United States and leverage energy resources abundant to that region, including at least two hubs in regions with abundant natural gas resources.
-DOE would give priority to hubs likely to create opportunities for skilled training and long-term employment to the largest number of residents in the region.
The DOE said it envisions selecting between 6-10 hydrogen hubs at a total of $6-7 billion, depending on the number, quality, and funding needs of applications received. The remaining $1-2 billion could be reserved for future hub launches or other supporting activities.
DOE said it anticipates a minimum range of $400-$500 million and a maximum range of $1-1.25 billion DOE share for each hydrogen hub, plus a minimum of 50% non-federal cost share, which would be executed over approximately 8-12 years, depending on the size and complexity of the hub.
However, this is considered a preliminary plan that is expected to evolve during the funding process.
Applications will likely start being accepted in September or October, when federal officials issue a funding opportunity announcement.
